Empire Energy Group Limited provided shareholders with this update of operations in Empire's 100% owned and operated EP187 tenement, located onshore Northern Territory in the Beetaloo Sub-basin (Beetaloo). Carpentaria-3H: The C-3H well has commenced drilling. Empire has contracted Schlumberger Land Rigs 185 to drill both C-3H and C-4V.

C-3H will be a horizontal well with a planned 2,000 metre horizontal section that will be fracture stimulated. The well is being drilled from the same pad as C-2H, also targeting the B Shale of the Velkerri Formation but going downdip in the opposite direction. C-3H will further de-risk the project and optimise production rates by applying learnings from the fracture stimulation and flow testing of C-2H.

Carpentaria-2H Operations: Flow back of stimulation fluids commenced at C-2H on 1 August 2022, immediately following placement of the well's 21 hydraulic stimulation stages. Gas flow commenced on 5 August 2022 with a period of significant but unmeasurable gas rates due to slug flow (gas with water production). Gas flow measurement began on 7 August 2022 and has flowed continuously since then, except for a 2-day operational shut-in to replace the hydraulic stimulation surface pipework with production pipework.

Following that shut-in, a peak rate of >11 mmscf per day was achieved. The gas has been flowing through 4 ½" casing. Production tubing was not required.

The average production rate over the first 51 days was 2.2 mmscf per day (a normalised rate of 2.4 mmscf per day per 1,000 metres of horizontal section). C-2H was producing at a rate of 1.82 mmscf per day prior to the recent shut-in. C-2H has been shut-in as planned to monitor pressure build-up and evaluate the impact on well productivity following a period of "soaking".

Soaking is the practice of shutting in a well for a period of time following fracture stimulation to seek to improve long-term productivity through redistribution and/or interaction of the residual water with the rock. Productivity improvements have been achieved at other Beetaloo wells and in analogous US shale plays following the execution of such a strategy. Evaluation of production tracer data to understand how each of the 21 hydraulically stimulated stages at C-2H has contributed to the overall production has commenced.

Results are expected to be available prior to the commencement of the fracture stimulation of C-3H. Learnings acquired from C-2H will be applied and adapted at C-3H to optimise completion and fracture stimulation design. The success of C-2H is an extremely encouraging step towards commerciality.

It provided key information for future wells including: Beetaloo-specific horizontal well drilling methods; enhancement of Beetaloo-specific hydraulic stimulation fluid selection, perforation strategy, proppant concentration and pumping techniques; refinement of the target window for landing a Velkerri B Shale horizontal section; and understanding the high-calorific gas composition at Carpentaria. Empire is using this technical data to develop an early production type curve for development planning.