• C-5H well successfully drilled and cased to 5,310 metres
• 100% of 3,310 metre horizontal section in Velkerri-B shale with strong gas shows
• Executed $30 million R&D and $5 million Performance Bond facilities with Macquarie

Empire Energy Group Ltd has announced the successful completion of the Carpentaria-5H ('C-5H') well, which reached a total depth of 5,310 metres (17,421 feet). The well was drilled in 41 days from spud to rig release, with the 3,310 metre (10,860 feet) horizontal section drilled in 8 days. 100% of the horizontal section was placed within the target Velkerri-B shale, and strong gas shows were observed throughout. The C-5H well was completed with 5 1/2' casing to optimise future hydraulic stimulation activity and maximise gas production. Following casing installation, the horizontal section available for hydraulic stimulation is 3,250 metres (10,662 feet). This marks a key step towards 'first gas' from the Carpentaria Pilot Project. Empire has also executed facility documentation with Macquarie Bank for a $30 million R&D Facility and a $5 million Performance Bond Facility, significantly increasing the company's available liquidity and reducing potential equity dilution. The R&D Facility is sized at 80% of the FY2024 and FY2025 estimated tax rebates under the Australian Government's R&D Tax Incentive Scheme, while the Performance Bond Facility will meet Empire's Northern Territory environmental bonding obligations. Empire is confident that further drilling and well completion optimisation can be achieved to materially reduce drilling time and costs in future drilling programs.

Empire plans to commence the fracture stimulation of the C-5H well in April 2025, after the NT wet season, and expects to see IP(30) flow rates from the well in Q2 2025. The ~3 month delay in commencing the fracture stimulation program is not expected to result in a delay to the commencement of gas sales from the Carpentaria Pilot Project.