Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Empire Oil & Gas Progress On Red Gully Gas And Condensate Processing Facility Construction

Empire Oil & Gas (ASX: EGO) is nearing completion on civil works at its Red Gully Gas and Condensate Facility in the Perth Basin, which will enable important construction to accelerate.

Over two thirds of the concrete has now been installed at the Facility with concrete supports for the condensate tanks and produced water tanks now poured.

As concrete footings are completed, various mechanical packages and equipment are being positioned into place allowing the installation of further piping to occur.

Further construction of the Export Compressor area has also been undertaken with the assembly of the acoustic enclosure framework and connecting pipework to the main pipe rack.

Empire has now mobilised the electrical workforce to the site and has started putting in cable trays along the pipe rack.

Pressure vessels manufactured in Henderson, Western Australia, are now on site awaiting installation.

Export Pipeline pressure testing has also been successful completed and it is now being cleaned out and dried by passing "pigs" along its entire 3.2 kilometre length.

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 upon processed condensate delivery assay and refining.

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%.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.