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Empire Oil & Gas Secures Final Approvals For Red Gully Gas Plant

Empire Oil & Gas NL (ASX: EGO) has secured all final approvals for construction of the Red Gully Gas and Condensate Processing Facility in the onshore Perth Basin.

Empire has received the Consent to Construct for all construction activity relating to its Red Gully Gas and Condensate Processing Facility including construction of the three kilometre Export Pipeline to the Dampier to Bunbury Natural Gas Pipeline (DBNGP) in neighbouring Lot 5550.

The company has also lodged the Petroleum Pipeline Licence Easement Agreement with the Department of Lands (Landgate) for registration as a Title. This will allow its contractor Thistle Fabrication Pty Ltd to start work on the Export Pipeline.

Earthworks for the Export Pipeline Route are due to commence.

The construction of the Red Gully Inlet by the DBP, the operator of the DBNGP is nearly complete.
The connection, which was constructed using the "Hot Tap" process, will allow gas from the Red Gully Facility and the Export Pipeline into the DBNGP to consumer Alcoa of Australia Limited. There is a 20 year contract with the DBP to utilise the DBNGP.

Mobilisation and the installation of the Primero Group's Construction Camp and Site Offices are underway in preparation for the Primero Civil Construction Team. This camp will house 35 to 40 workers on site.

The company has also completed preparations for the Laydown area where delivery of the larger equipment packages will be made. The first of the Red Gully Condensate Storage Tanks that were manufactured in Henderson, Western Australia have already been delivered.

Earthworks related activities over the main area of the plant have been completed allowing full construction activities, while further earthworks on the well sites have been completed to ensure that the well sites are in good working order to produce the completed wells, Gingin West-1 and Red Gully-1.

Commissioning of the Red Gully Facility, which will process gas from the Red Gully-1 and Gingin West-1 wells is expected to start in the first week of January 2013.

Partners in the EP389 are Empire (Operator) (68.75%), ERM Power (ASX:EPW) with 21.25% and Wharf Resources(10%).

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