Empire Oil and Gas upgrades gas and condensate reserves at Red Gully

Empire Oil and Gas (ASX:EGO) has increased Proved and Probable (2P) gas reserves for the B Sand of its Red Gully-1 well in the Perth Basin Western Australia by 46% to 14.53 petajoules.

Condensate reserves were also increased by 21.2% to 557000 stock tank barrels.

The Red Gully-1 B Sand has been in production for about seven months.

Empire has also agreed extend its agreement to acquire ERM Power’s (ASX: EPW) Western Australia gas assets including its stake in the Red Gully gas and condensate project to 13 February 2015.

This will provide additional time to complete the various procedural matters associated with the transaction including final approval from the Western Australia Department of Mines and Petroleum.

To assist in managing its short term cash requirements Empire has agreed with ERM to amend the terms of the ERM Credit Facility by changing the Facility Limit to $1.5 million and extending the term to the earlier of 31 March 2015 or completion of the proposed pro‐rata share issue.

Empire has so far requested $250000 to be drawn down against the Facility.

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