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  • Empire Oil And Gas And Partners Receive Final A$5 Million Payment From Alcoa 0 comments
    Apr 4, 2013 6:28 PM

    Empire Oil and Gas (ASX: EGO) and its partners in the EP389 Joint Venture have received their third and final payment of A$5 million from Alcoa (NYSE: AA) for construction of the Red Gully Gas and Condensate Processing Facility.

    This follows the satisfaction of the Third Prepayment Condition under the Gas Supply Agreement.

    Alcoa has now completed its $25 million funding of the estimated $29.1 million Red Gully plant.

    The EP389 Joint Venture had agreed to sell a total of 15,000 terajoules of gas from the Gingin West and Red Gully gas fields in two separate tranches to Alcoa.

    The first tranche consists of the Forward Gas Sales component under which Alcoa had agreed to pay the $25 million for the plant. The second tranche, which makes up the majority of the agreement, is a separate and normal Gas Sales Agreement.

    Empire has made good progress on the plant with the last major piece of equipment - the Flash Gas Compressor - now in place.

    The compressor, which will have its own acoustic enclosure installed much like the Export Compressor, was lifted and positioned by crane on 3 April 2013.

    The Red Gully Gas and Condensate Processing Facility will produce gas and condensate from the Red Gully-1 and Gingin West-1 discovery wells, which are both very high in condensate content.

    Condensate produced will be sold to the BP Refinery at Kwinana, Western Australia. The Contract for this is still being finalised.

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

    Perth Basin

    Empire has concluded the Launer 2D Seismic Survey in the North Perth Basin and has started surveying shot holes for the Wannamal 3D Heliseismic Survey that will begin in mid April.

    The company will now process and interpret the 61 line kilometres of 2D seismic over the Launer Prospect that straddles the EP454 and EP430 Permits, and the Winchester Prospect in EP430.

    Helicopters to carry out the 80 square kilometre Wannamal survey are due on site next week.

    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.

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