Carl Dumbrell & Phil McNamara 20 Oct 23 EMP

Summary

Emperor Energy's directors, K. Dumbrell and Phil McNamar, update shareholders on their focus on the Judith gas project in Victoria, with significant 2 TCF prospective resources. They discuss the project's potential to supply the East Coast market for 25 years, their application for a permit extension, and environmental plan progress. They also address inquiries from potential partners regarding gas quality and AVO interpretation accuracy. Additionally, they introduce a gold mining project to generate cash flow and support the company's long-term gas strategy.

Takeaways

• 🛢️ Emperor Energy is focused on the Judith gas field in Vic P47 exploration permit in Bass Strait.
• 📊 The Judith gas field contains a prospective resource of two TCF p50, with at least one TCF of recoverable gas.
• 🏙️ The dynamic modeling suggests production of over 100 million cubic feet per day for 25 years.
• 🗓️ Emperor Energy has applied for an extension on their drill date and expects a response from NOPTA by late November.
• 🌿 The environmental plan is set to be submitted early in 2024, with approval expected in the second quarter of 2024.
• 💬 Potential partners are interested but are waiting for the extension approval and environmental approval.
• 📉 Recent analyses have confirmed four movable gas zones and better permeabilities, enhancing potential flow rates.
• 🔄 Gas is seen as a transition energy source to complement the shift to renewables and reduce CO2 emissions.
• 🌟 Emperor Energy is also exploring a gold mining project to generate regular cash flow and support company operations.
• 📈 The company assures shareholders that the gas business remains the primary focus while the gold project serves as a supplementary income source.

Q & A

What is the main focus of Emperor Energy according to the update?

Emperor Energy remains focused on the Judith gas project in VIC/P47 exploration area, which is located next to the Exxon Mobil system and the Oris gas plant.

How significant is the Judith gasfield in terms of prospective resources?

The Judith gasfield within Emperor Energy's permit contains two TCF (trillion cubic feet) of P50 prospective resources, which is considered a huge resource.

What is the potential lifespan of the Judith gasfield if it were to supply gas to a marketplace like Melbourne?

Based on dynamic modeling and new seismic data, the Judith gasfield could supply over 100 million cubic feet per day for 25 years.

What is the current status of the application for an extension on the drill date with the National Offshore Petroleum Titles Administrator (NOPTA)?

Emperor Energy has submitted an application to extend the primary term of their permit, and they have provided additional information as requested by NOPTA. They are awaiting a response expected in late November.

What is the timeline for the environmental plan approval process?

Emperor Energy expects to finalize the environmental plan and submit it to NOPSA early in 2024, with approval expected in the second quarter of 2024.

What are the key milestones that potential partners are looking for from Emperor Energy?

Potential partners are looking for the extension of the permit duration and existing approval to drill the well, as well as answers to questions about the quality of the gas-bearing formations and the accuracy of the AVO interpretations.

What steps has Emperor Energy taken to address questions about the gas quality and AVO interpretations?

Emperor Energy has engaged Steve Adams to review the petrophysics, confirming movable gas zones and better permeability ranges. They are also working on calibrating the AVO response against Steve Adams' work with another consultant.

How does Emperor Energy's gas project fit into the broader energy transition towards renewables by 2050?

The gas project is seen as a transition energy source that complements East Coast Australia's move towards renewables by providing firming capacity, which is essential due to the variability of solar and wind energy.

What is the Bonding project and how does it relate to Emperor Energy's strategy?

The Bonding project is a gold mining play that Emperor Energy is considering to generate cash flow and provide regular income, allowing the company to continue its operations without relying on regular capital raises.

Why is Emperor Energy considering a mining project in addition to its gas business?

Emperor Energy is looking to diversify its income sources without distracting from its core gas business. The gold mining project is seen as a way to generate regular income to support the company's ongoing operations and development.

Outlines

00:00

📈 Emperor Energy's Focus on Judith Gas Project

K and Phil, directors of Emperor Energy, discuss the company's ongoing commitment to the Judith gas project in Victoria, P47. Located adjacent to Exxon Mobile's infrastructure and the Oris gas plant, the project is a significant focus for the company. The Judith gasfield holds a substantial 2 TCF p50 prospective resource, which is a considerable amount, with the potential to supply the East Coast market for up to 25 years at a rate of over 100 million feet per day. The company is also working on extending their permit with Notta, submitting an application for more time to finalize environmental plans and commence drilling. They are confident about the permit extension and await a response by late November.

05:00

🌱 Environmental Approvals and Partner Discussions

The conversation continues with the environmental plan development for Emperor Energy's gas project, which has been in progress for over a year. The plan was nearly finalized in 2022, but additional stakeholder consultations are required due to a force majeure event. The company aims to restart these consultations and submit the application to NOPSA in early 2024, expecting environmental approval by the second quarter of the same year. Discussions with potential partners are ongoing, with the extension of the permit duration and the drilling approval being key milestones. The company has also addressed questions regarding the quality of the gas and the accuracy of their AVO interpretations, engaging experts to provide reassurance and data to potential partners.

10:02

🏭 Diversifying with a Gold Mining Project

Emperor Energy is exploring a new venture in gold mining to complement its gas business and generate regular income. The company has identified three overlapping gold mining leases with a history of gold extraction. Although the site has not been explored extensively, the company sees potential in this untouched asset and plans to conduct drilling to ascertain mining areas and grades. The goal is to establish a contract mining operation with nearby processing facilities to produce a steady cash flow. This initiative is intended to support the company's ongoing operations without relying on continuous capital raises, aligning with the company's strategy to maintain and grow its presence in the energy sector.

Keywords

💡Emperor Energy

Emperor Energy is the company being discussed in the video. It is an energy company with a focus on gas exploration and production. The video script mentions that it is directed by K. Dumbrell and Phil McNamar, who provide updates on the company's activities. The company's focus on gas exploration is central to the video's theme of energy development and environmental responsibility.

💡Judith Gas

The Judith Gas field is a significant exploration area for Emperor Energy, located in Victoria, P47. It is mentioned as the main focus of the company's operations, with the potential to supply a substantial amount of gas to the East Coast market. The script refers to it as a 'huge resource' and discusses its prospective resource in terms of recoverable gas.

💡TCF (Trillion Cubic Feet)

TCF stands for Trillion Cubic Feet, a unit of measurement used to quantify the volume of natural gas reserves. In the script, it is used to describe the size of the Judith gas field's prospective resource, indicating that the field contains two TCF of p50 prospective resource, which is a significant amount in the context of energy resources.

💡Resource Recovery

Resource recovery refers to the process of extracting and utilizing natural resources, such as gas, from the earth. The script mentions that there is a 'full TCF of recoverable gas' in the Judith gas field, highlighting the potential economic and energy value of the resource.

💡Environmental Plan Approval

Environmental Plan Approval is a regulatory process required for projects like gas exploration to ensure they comply with environmental standards. The script discusses the company's application for an extension on their drill date to complete this approval process, emphasizing the company's commitment to responsible energy development.

💡Force Majeure Event

A force majeure event refers to unforeseen circumstances that prevent a party from fulfilling a contract. In the script, it is mentioned as the reason for extending the stakeholder consultation time required for the environmental approval of the gas project, indicating a disruption in the project timeline.

💡Potential Partners

Potential partners are entities that may collaborate with a company on a project. The script discusses Emperor Energy's conversations with potential partners who are interested in the company's gas exploration projects, highlighting the importance of securing support and investment for the company's ventures.

💡Petrophysics

Petrophysics is the study of the physical properties of rocks, particularly in the context of hydrocarbon exploration. The script mentions a review of petrophysics conducted by Steve Adams, which confirmed the presence of movable gas zones and provided a better understanding of permeability in the Judith gas field.

💡AVO (Amplitude Variation with Offset)

AVO refers to Amplitude Variation with Offset, a seismic interpretation technique used in hydrocarbon exploration to identify potential reservoirs. The script discusses the calibration of AVO responses to confirm the quality of the gas-bearing formations in the Judith gas field, showing the company's use of advanced techniques for exploration.

💡Renewable Energy

Renewable energy sources, such as solar and wind, are energy systems that replenish naturally and are sustainable over time. The script discusses the role of gas as a transition energy source to support the move towards renewable energy by 2050, emphasizing the need for firming capacity to support the variability of renewable energy sources.

💡Gold Mining Leases

Gold mining leases are legal agreements that grant rights to mine for gold on a specific area. The script mentions Emperor Energy's acquisition of three overlapping gold mining leases as a way to generate cash flow and provide regular income for the company, illustrating the company's diversification strategy beyond gas exploration.

Highlights

Emperor Energy remains focused on the Judith gas project in VIC/P47 exploration firm.

The Judith gasfield contains two TCF p50 prospective resources, a significant find.

The gas from Judith could supply the East Coast market for over 25 years.

Emperor Energy has applied for an extension on their drill date with Notta.

Application for permit extension is based on a force majeure event and is progressing well.

Environmental plan approval is expected in the second quarter of 2024.

Potential partners are interested in the project, seeking certainty on permit extension and environmental approval.

Steve Adams' review confirmed movable gas zones and improved permeability in the Judith gasfield.

Calibration of AVO response against Adams' work is underway to address potential partner inquiries.

Gas from the Judith project is seen as a transition energy source, supporting the move to renewables by 2050.

Renewable energy requires firming capacity, which gas-fired generation can provide.

Emperor Energy announced a mining play with three gold mining leases.

The gold mining project aims to generate cash flow and provide regular income for the company.

The gold mining project is a mining list, not an exploration permit, indicating existing gold deposits.

Emperor Energy plans to move towards a contract mining operation for the gold project.

The gold project is intended to complement the gas business, not distract from it.

Emperor Energy encourages shareholders with questions to reach out directly.

Transcripts

good afternoon everyone my name is k

dumbrell I'm a director of Emperor

energy and today I'm with fellow

director Phil mcnamar it's Friday the

20th of October hey Phil and we'd like

to provide you an update on the

announcements we've made this week and

what it means for your company so Phil

is gas still the main play for Emperor

energy absolutely K Emperor energy

remains totally focused on the Judith

gas in vic

p47 exploration firm it's located bass

straight right next to the Exon Mobile

system uh right next to uh the orus gas

plant 40 km offshore from Oris gas plant

yeah it remains our

focus and we we continue to to work on

that project yep excellent how big is

the project

Phil the jewi gasfield within Emperor

Energy's permit contains two TCF p50

prospective resource that's a huge

Resource as as it was once said to me

you only find one TCF in your life as a

perspective resource of two we feel

there's definitely a full TCF of uh

recoverable gas to be recovered and and

and put into the East Coast mark from

the Judith gasv and how long would that

last in that Marketplace let's say a

city like

Melbourne the dynamic modeling that's

been done based on all the analysis and

the new seismic data we've got and all

the information and the work that's been

done says we could continue to reduce

over 100 million feet per day there for

25 years yeah a significant PL like it

sounds Mission critical to the change in

the dynamic of energy in the east

coast yes the Oris gas plant is is 68

million cubic feet per day we see Judith

as being a scale up from that and make a

significance difference significant

difference to what's happening in the

East Coast Gas group yes so at the

moment we've also announced that we've

been dealing with notter we've applied

for an extension on our drill date how's

that going at the moment

Phil we put an application into into

notta to extend the primary term of our

permit to give us more time to uh

complete our environmental plan approval

and more time to then drill the well uh

we have been we have a confirmed valid

application from

not all on

time and we have then been requested to

supply further information in relation

to the application and that has been

completed and provided to not at the

back end of September so that's going

well the application is based on a force

measure event that is extended out the

stakeholder consultation time required

to make to put a valid application into

toop SIM for the environmental approval

y and and no's advice was to put the

application forward on the basis of that

on the on the basis of the force majure

event so we're quite confident about

seeing this whole permit extension being

approved when for another two years and

when would you feel we'd get a response

from notta on the

extension notta's guidelines indicate a

period of time between six and 8 weeks

from completion of

application to the time that notto

complete their review make

recommendations to the Joint Authority

who are delegates of the ministers both

federal and

state

and allow time for The Joint authority

to then make their final decision so we

see with the application completed and

the additional information supplied in

late September we see

the response from

notta occurring in late November okay

well that's excellent so that'll take us

back to our environmental plan that

we've been working on over the last 12

months when do you think we'd finalize

that environmental

plan so the environmental plan was

developed through

2022 and at the back end of well third

quarter of and in the fourth quarter of

2022 we started to kick off our

stakeholder consultation process and

then the force majure event

uh which changed the requirements for

stakeholder consultation occur so we

have a completed application ready to go

but we have to get back and complete the

stakeholder

consultation so our strategy now is to

get an approval from notta to extend the

permit duration permit life life and

once that's in place we will restart our

stakeholder consultation process with a

view to then submitting our application

to nopsa early in 2024

we expect from that submission date

through to getting approval including

time for providing additional

information to Nota as they request it

we see approval occurring in the second

quarter of 2024 that is approval an

environmental approval to draw the world

that's excellent yeah um as far as

partners concerned like that they' want

to know certainty on the not to approval

wouldn't they but where are we at with

conversations with potential partners

we're in conversation with potential

Partners they obviously want to see the

extension of the permit duration and

they obviously be more comfortable with

dealing with a well that has an existing

approval to be drilled so they are the

the two key approval milestones for us

moving forward y they've also asked us

some questions which we've made ASX

releases about and and the two key

questions that have been

asked about the the quality of the gas

bearing formations and the Jud gasfield

and about the calibration or the

accuracy of our Avo interpretations

amplitude variation with offset of the

seismic yeah so we engaged Steve Adams

to carry out a review of the

petrophysics he's very well

respected he has confirmed our previous

understanding of where that we have four

movable gas zones in the in the Judith

one well that was drilled in 1989 by

shell and he's confirmed the gas

saturations that we had previous

interpretation of in his analysis

however he has come back with a far

better perme range of permeabilities

than what we previously understood and

that that's a gamechanging situation a

gamechanging piece of analysis because

it totally reates the flow rate

potential flow rate of uh the appraisal

well that we plan to drill and any

potential production Wells like drilled

later on so that's a very positive

outcome we're taking that back to

potential Farm in partners and at the

same time we've had had some more work

done to calibrate the Avo response

against Steve Adams work and that's been

done by another well respected

individual consultant who has developed

a technique to to overcome the fact that

we don't have a full wve Sonic W from

the original 1989 well he's developed a

technique to uh to deal with that and

we're seeing some good initial responses

from him so that's taken a little bit

longer than we expected to complete that

work but we uh we will be looking to put

an announcement out to the market quite

soon about that once again we' taking

that information back to potential

farming Partners to answer the two big

questions is the is the formation the

gas bearing formation quality good

enough and do you have a calibration on

the seismic Ava amplitude response we

believe both of those questions are

being answered with very very good data

yeah that's excellent so gas is a

transition energy into the whole move by

2050 to Renewables it sounds like the

timeline of Em's project turning on is

really critical for that transition and

will complement East Coast Australia's

transition into Renewables but at the

same time significantly reducing CO2 is

that right Phil like is that where you

said renewable energy needs firming

capacity there's no doubt about that

there is a natural variability in solar

and wind renewable energy yeah hydro

hydro capacity is wood firing capacity

the snowy mountains Snowy Mountains 2

system was obviously you know got a

major delay occurring but apart from

that separate from that renewable energy

needs firming capacity to back it up and

at the moment that firming capacity in

Victoria and New South Wales is coming

out of coal COI power stations it's

black coal in New South Wales but even

worse and that is brown call in

Victoria so it's quite logical that is

that as renewable energy capacity

increases it's quite logical to make the

transition from Brown coal in Victoria

to gasi generation to firm up the

renewable Supply gasi generation can be

ramped up and down very very quickly and

it's the perfect way to firm renewable

energy so we we see that Victoria is

going to have to going to have to move

towards a level of gas fire generation

that firms up Renewables and by doing

that by doing that and shutting down the

brown coal industry there would be a

major Improvement in total CO2 missions

y so this week Phil we've announced a

mining play can you quickly just tell us

a little bit about this bonding

project

the gas business that we're in is is a

it's a long-term it's a long-term play

and what we've been looking for as you

all know what we've been looking for in

this company is how to generate some

cash flow that underpins the company and

provides regular income and keeps the

company rolling forward without having

to rely on regular Capital raises for

day-to-day expenses of staying listed

and being in business

Y and across this year 2023 we've looked

for opportunities we've engaged with

some people we've looked for something

that would fit and what we

found three three gold mining leases

they're overlapping they've been

integrated they've been privately held

for more than 30 years and we know

there's gold there there are there's

historic workings we've been to site

we've looked there are historic workings

where there are records of gold being

extracted there are old exploration

results old old assay results carried

you know from from exploration work that

was done in the early 1980s yeah we know

there's gold on the site now we see that

this is an untouched gold

asset There's an opportunity here to buy

it at a price that we see reasonable

within the capability of the company at

this point in time and I want to

reiterate it is a mining list it's not

an exploration permit so we need to then

do some drilling firm up areas where we

would start to mine and understand what

the grades will would be and then move

towards a contract mining operation with

a Contract Processing of the gold of the

gold ore at a nearby Mill 60 to 80

kilometers away in the in the Charis

to's

region we we see the opportunity to move

towards that sort

of Swing produce operation that can give

us some generate cash for us on a

regular basis each year now it would be

very much focusing on smaller scale high

grade generating cash it's not a

distraction away from the gold business

it's purely a way for us at Emperor

energy to generate some regular income

for the company yeah yeah and that's the

main point of the video today to

everyone out there in conclusion we're

here to basically say that we we're not

moving away from gas and right now the

company share prices at a place where

anybody who was to participate in on

Market or off Market transactions would

likely do very well so EMP is not

changing it's just complimenting what

it's doing in the gas play with a small

gold mine and it's a mining project and

I'd say to anybody out there that if you

have any questions like pick the phone

up and call us but thanks so much Phil

today I just wanted to give the sholders

an update and um you've got all your

details so thank you very

much thank you car

end that pH