Term Sheet Executed for VALARIS 107 Drilling Rig Judith2
Emperor Energy Ltd
Key points
- Term sheet executed with Valaris for VALARIS 107 rig
- US$1.5 million paid upfront, US$2.0 million upon full contract
- Drilling targeted for April 2027, rig expected to be available in March 2027
- Environmental Plan resubmitted, approval expected by end of September
Full summary
Emperor Energy Ltd (ASX:EMP) has executed a term sheet with Valaris Limited to secure the VALARIS 107 jack-up drilling rig for the Judith-2 Appraisal Well, targeted for April 2027. The term sheet outlines the commercial terms and secures the rig's availability for 30 days of drilling and 15 days for flow testing, with an option for an additional side track well. Emperor has paid US$1.5 million upfront and will pay a further US$2.0 million upon finalizing the full-form drilling contract by the end of October 2026. The VALARIS 107 is currently operating in the Gippsland Basin and is expected to be available in March 2027. Emperor has resubmitted its Judith-2 Environmental Plan to NOPSEMA and expects approval by the end of September 2026.
Guidance
Emperor Energy expects to pay US$3.5 million for the VALARIS 107 rig.
Outlook
Emperor Energy is progressing towards drilling the Judith-2 Appraisal Well with the secured rig and anticipates environmental approval by the end of September.