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Empire Oil & Gas Progressing Construction Of Red Gully Gas Plant

Empire Oil & Gas (ASX: EGO) is making progress on construction of the Red Gully Gas and Condensate Facility in the Perth Basin.

Civil works for the project is ongoing with the Export Compressor concrete foundation poured and installation of the compressor to compress produced gas to meet the Dampier to Bunbury Pipeline specifications to follow.

The Gas-Gas Exchange that aids in the cooling of the gas stream has being mounted while the concrete foundations for the main Piperack back bone facility has been completed with installation and fabrication of its steelwork underway.

Condensate Storage Tanks will also be installed.

Work on the 3 kilometre pipeline to the Dampier to Bunbury Pipeline inlet is also progressing with sections of the export pipeline welded in sections.

Trenching of the 3 kilometre route and burying and laying of the pipeline will start next week 19 and 20 November.

There are currently 25 construction personnel accommodated on site. This will increase to 40 in the next few days.

Red Gully Gas and Condensate Facility

Gas produced at the Red Gully facility, which will process flows from the Gingin West-1 and Red Gully-1 wells, will be sold to Alcoa (NYSE: AA) under the existing gas sales agreement for 15,000 terajoules of gas that was reached in October last year.

Condensate will be sold to the BP Refinery at Kwinana, Western Australia, under contracts that are pending finalisation.

Gingin West-1 flowed 7.5 million cubic feet (MMcf) of gas and 375 barrels of condensate per day during testing while Red Gully-1 flowed 12MMcf of gas and 832 barrels of condensate.

Partners in EP 389 are Empire with 68.75%, ERM Power (ASX: EPW) with 21.25% and Wharf Resources with 10%.

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