Highlights:

• C-5H well has been successfully drilled and cased to a Total Depth of 5,310 metres (17,421 feet) 
• 100% of the 3,310 metre (10,860 foot) horizontal section was placed within the target Velkerri-B shale, with strong gas shows throughout 
• The C-5H well was completed with 5 ½” casing to Total Depth prior to suspension and rig release on 27 December 2024 
• The well was executed in 41 days from spud to rig release 
• Fracture stimulation operations and production testing of C-5H scheduled to commence in early Q2 2025 after the NT wet season 
• Empire has executed facility documentation with Macquarie Bank for the R&D Facility ($30 million) and Performance Bond Facility ($5 million) 
• Current cash at bank is $25.7 million with an additional $28.8 million available and undrawn under the Macquarie facility

Comments from Managing Director Alex Underwood:

"The safe and successful drilling, casing and cementing of C-5H represents a major operational milestone for Empire Energy and the broader Beetaloo Basin.

C-5H contains the longest horizontal drilled and cased section of any well drilled in the basin to date. The horizontal section was completed fully within the target Middle Velkerri-B shale zone, setting the Company for a successful stimulation program.

The decision we have made to delay the C-5H fracture stimulation from January 2025 to April 2025 has been taken with the best interest of our shareholders in mind, as the financial risk of weather-related issues would have been substantial. The Change in program timing is not expected to delay delivery of first gas in 2025.

The documentation of the Macquarie R&D and Performance Bond Facilities enhances the Company's liquidity without any dilution of shareholders' interests. We look forward to completing documentation of the Midstream Infrastructure Facility in Q1 2025."

Source: Empire Energy Group