EMPIRE ENERGY GROUP LIMITED Level 7, 151 Macquarie Street Sydney NSW 2000
T: 02 9251 1846
F: 02 9251 0244 (ASX: EEG)ASX Announcement Kansas Drilling Update
19 October 2011
DEVELOPMENT WELL DRILLING PROGRAM DEVELOPMENT WELLS 1 TO 8
Empire Energy Group Limited (Empire) is pleased to announce that the Helmers Unit #3 well has been spudded and reached 590ft. This is the 8th well of the proposed 10 development well drilling program.Well Name Field County, KS WI Status Boxberger Solomon #14 Hall-Gurney Russell 70.7% Producing C L Newcomer #9 Hall-Gurney Russell 90.13% Producing Kollman #15 Bemis-Shutts Ellis 86.0% Producing Carmichael/Kollman West Unit #4 Bemis-Shutts Ellis 90.13% Producing Esfeld #9 Kraft-Prusa Barton 58.48% Producing
Empire holds an 86% working interest in the well. Current progress can be summarised as follows:
Krankenberg #5-19 Krankenberg Stafford 73.9% Producing
Driscoll #31-8 Hall-Gurney Russell 37.5% Plugged Helmers Unit #3 Max Stafford 86.0% Spudded
CENTRAL KANSAS UPLIFT
Historically, Kansas has been a very prolific oil and gas producing state with cumulative production exceeding 6.1 billion barrels of oil (BBO) and 37.5 trillion cubic feet of gas. Current yearly production is approximately 33 million barrels of oil and 342 billion cubic feet of gas from over 60,000 wells. The most prolific oil reservoirs are the Arbuckle (Ordovician) and Lansing-Kansas City (Pennsylvanian) formations particularly from fields located on the Central Kansas Uplift (CKU). Arbuckle reservoirs have produced over 2 BBO statewide. Of the 31 counties in which the Arbuckle has been productive, over 70% of the production has come from 10 counties situated on the Central Kansas Uplift in which Empire Energy operates.
ABOUT EMPIRE ENERGY GROUP LIMITED
In early 2007, the Company established Empire Energy USA, LLC and currently holds around 96% of its issued capital. Empire Energy USA is an oil and natural gas producer and also operates a small oil and gas field service operation. It has operations in Appalachia (New York and Pennsylvania) and the Central Kansas Uplift (Kansas).
Empire Energy implemented a US$100 million credit facility with Macquarie Bank Limited in early 2008 for the sole purpose of acquiring and developing oil and gas assets in the USA. This facility has been increased to US$150 million.
For more information: Bruce McLeod
Empire Energy Group Limited
+61 2 9251 1846