ASX-listed Empire Energy has selected a drilling contractor, picked its well site for Capentaria-1, ordered necessary equipment, and finalised the well design.
The announcement today saw the company's shareprice jump more than 4% to 25.5 cents per share.
It plans to spud the well in exploration permit EP187 in the third quarter, despite challenges posed by COVID-19 restrictions and a volatile market.
Carpentaria-1 will be drilled to a depth of 2900 metres and target the Velkerri Shale and Kyalla Shale formations. While the Velkerri has already proven to hold dry gas elsewhere, the Kyalla which is the secondary target could hold liquids.
The well aims to identify and prove up the thickness of the shales.
Currently Empire believes its well will hit up to 600m of Velkerri shale and a 100m interval of the Kyalla shale.
Once drilled, it will be fracced and tested. Data from the well will be used to design an appraisal program slated for next year, with a view for short-term production.
It is expected the drilling, completion and evaluation of the well will take around 45 days.
Over the last two or so years, Empire have pivoted away from US onshore exploration, to focus solely on Australian domestic opportunities.
The company believes the Beetaloo basin will play a "key role in opening up Australian supply of domestic energy."
"We are really excited to replicate the US shale boom here in Australia," managing director Alex Underwood told Energy News.
Recently, independent oil and gas research firm Netherland, Sewell & Associates estimated Empire's entire portfolio, which spans 14 million acres, now holds a combined 13.46 trillion cubic feet of gas on a 2U best estimate basis.
Within EP187 Netherland, Sewell & Associates, estimate a 2U prospective resource of 2.4 Tcf.
