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Empire Oil & Gas Encouraged By Perth Basin Unconventional Gas Successes

Empire Oil & Gas (ASX: EGO) has found much to be encouraged about with the recent successes made by Norwest Energy (ASX: NEW) and AWE Limited (ASX: AWE) while testing their respective unconventional gas wells in the Perth Basin.

The company has a large acreage position in the Perth Basin that contains the same reservoir objectives as both Arrowsmith-2 and Woodada Deep-1. These include EP 432 due south of Woodada Deep-1 and EP 426 and EP 368 northeast of Arrowsmith-2.

Empire and its partners in EP 432 will drill later this year the Black Arrow-1 exploration well targeting a conventional oil objective in the Kockatea Shale and will continue its technical work on the deeper shale gas potential of the Carynginia Formation, the Irwin River Coal Measures, the Kockatea Shale and also tight gas in the High Cliff Sandstone.

In EP 426 and EP 368, operator Origin Energy (ASX: ORG) is planning to acquire the 100 square kilometre North Erregulla 3D seismic survey in the first quarter of 2013.

This will detail the North Erregulla structure for both the oil potential of the conventional Dongara Sandstone and Arranoo Sandstone objectives, which have potential recoverable reserves of 25 million barrels of oil and 3 million barrels of oil respectively, as well as the deeper unconventional objectives.

It also released a report by RPS Energy Services estimating that up to 24 trillion cubic feet of in place unconventional gas could be contained within the Lower Cattamarra Coal Measures in EP 389.

Norwest Energy has flowed gas at rates of of up to 777,000 cubic feet per day from testing of the High Cliff Sandstone, a secondary target at its Arrowsmith-2 well, and has also started flowing gas from the primary target Irwin River Coal Measures, following successful separate fracs of the intervals.

Similarly, AWE has flowed gas from the Middle Carynginia and Upper Carynginia shales at its Woodada Deep-1 well though flow measurements are not available as yet.

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