1 00:00:00,280 --> 00:00:03,520 Speaker 1: Well, we know the Northern Territory government has given Empire 2 00:00:03,680 --> 00:00:07,320 Speaker 1: Energy the green light, approving its environment management plan for 3 00:00:07,360 --> 00:00:11,479 Speaker 1: the Carpenteria Pilot project last week. The gas company can 4 00:00:11,520 --> 00:00:15,440 Speaker 1: now proceed with drilling nine wells and installing plant and 5 00:00:15,520 --> 00:00:20,040 Speaker 1: processing facilities to the MacArthur River pipeline for exporting gas 6 00:00:20,079 --> 00:00:22,639 Speaker 1: to keep markets. Now. Joining us for an update on 7 00:00:22,720 --> 00:00:30,320 Speaker 1: the project is Empire Energy's chief executive Alex Underwood. Get Alex, Hi, Katie, 8 00:00:30,320 --> 00:00:32,480 Speaker 1: how are you there really? Well, what are the next 9 00:00:32,479 --> 00:00:35,519 Speaker 1: steps for the project following the government approval? 10 00:00:36,960 --> 00:00:40,400 Speaker 2: So, yeah, we've actually moved straight into drilling. So we 11 00:00:40,479 --> 00:00:45,600 Speaker 2: started drilling our Carpentera five h well on Saturday morning. 12 00:00:45,640 --> 00:00:47,839 Speaker 2: A very exciting development for our company. 13 00:00:48,000 --> 00:00:48,200 Speaker 1: Yeah. 14 00:00:48,440 --> 00:00:51,160 Speaker 2: That'll be a well with a three thousand meter horizontal 15 00:00:51,240 --> 00:00:53,800 Speaker 2: section and then we'll be stimulating that well after that 16 00:00:53,920 --> 00:00:56,320 Speaker 2: and all things going well, we hope to be putting 17 00:00:56,320 --> 00:00:58,600 Speaker 2: it into the gas into the pipeline next year. 18 00:00:59,160 --> 00:01:02,560 Speaker 1: So start on Saturday. You certainly hit the ground running 19 00:01:02,560 --> 00:01:03,880 Speaker 1: there once you got that approval. 20 00:01:05,000 --> 00:01:08,200 Speaker 2: Yeah, we actually had approval for that well already. Disapproval 21 00:01:08,240 --> 00:01:12,280 Speaker 2: allows us to move into the production phase, so installing 22 00:01:12,319 --> 00:01:15,560 Speaker 2: a gas processing plan, hooking in this well and two 23 00:01:15,600 --> 00:01:18,320 Speaker 2: existing wells and getting gas into production. 24 00:01:18,840 --> 00:01:21,480 Speaker 1: So, Alex, what does it mean in terms of development 25 00:01:21,760 --> 00:01:23,000 Speaker 1: of the Bloo Basin. 26 00:01:24,440 --> 00:01:27,120 Speaker 2: Well, I think it's a very important development. I think 27 00:01:27,480 --> 00:01:30,480 Speaker 2: the new Coorpea government is clearly showing their support for 28 00:01:30,520 --> 00:01:34,039 Speaker 2: this industry and we, along with others in the base 29 00:01:34,120 --> 00:01:37,760 Speaker 2: and are very keen to get moving on moving the 30 00:01:37,840 --> 00:01:40,640 Speaker 2: basin into production. And I must say it's come at 31 00:01:40,640 --> 00:01:43,280 Speaker 2: a very important time for gas supply and the territory. 32 00:01:44,360 --> 00:01:46,640 Speaker 1: And why is that? Why has it come at such 33 00:01:46,680 --> 00:01:47,520 Speaker 1: an important time? 34 00:01:48,680 --> 00:01:50,920 Speaker 2: Well, there are shortages in the NT with some of 35 00:01:50,960 --> 00:01:54,000 Speaker 2: the decline of existing fields, and you know, we and 36 00:01:54,040 --> 00:01:56,680 Speaker 2: our neighbors in the basin have demonstrated our commitment to 37 00:01:57,600 --> 00:02:01,680 Speaker 2: looking after supplying the NT market, selling gas into the 38 00:02:01,880 --> 00:02:03,800 Speaker 2: local market in the next space. 39 00:02:04,360 --> 00:02:07,640 Speaker 1: And so are there any other sort of approvals for 40 00:02:07,800 --> 00:02:10,120 Speaker 1: the project that you yet to secure or any other 41 00:02:10,160 --> 00:02:11,240 Speaker 1: steps that are required. 42 00:02:11,280 --> 00:02:14,880 Speaker 2: Where are we at? Yeah, So the key remaining approval 43 00:02:14,919 --> 00:02:17,799 Speaker 2: we need to sell gas is a sign off from 44 00:02:17,840 --> 00:02:22,080 Speaker 2: the traditional owners. We had some very good consultation meetings 45 00:02:22,080 --> 00:02:25,040 Speaker 2: with traditional loners back in August and there's a very 46 00:02:25,120 --> 00:02:27,880 Speaker 2: high level of support for our project amongst the traditional 47 00:02:27,960 --> 00:02:30,760 Speaker 2: owner group. You know, we consider the traditional loanners to 48 00:02:30,800 --> 00:02:33,919 Speaker 2: be very important partners in the project with us. We've 49 00:02:33,919 --> 00:02:36,320 Speaker 2: actually got a number of traditional loaners working for us 50 00:02:36,360 --> 00:02:38,880 Speaker 2: on site at the moment, and I was delighted that 51 00:02:38,919 --> 00:02:42,120 Speaker 2: they actually invited us out to a welcome to Country 52 00:02:42,160 --> 00:02:46,400 Speaker 2: smoking ceremony on Friday, which I attended on site. And yeah, 53 00:02:46,520 --> 00:02:48,560 Speaker 2: just look forward to getting those final sign offs so 54 00:02:48,600 --> 00:02:51,480 Speaker 2: we can start selling the gas, Alex. 55 00:02:51,560 --> 00:02:55,280 Speaker 1: I know that there some traditional owners have still got concerns. 56 00:02:55,320 --> 00:02:59,080 Speaker 1: They were saying that proper consultation needs to take place 57 00:02:59,160 --> 00:03:03,160 Speaker 1: before you can before they can give consent. But by 58 00:03:03,200 --> 00:03:05,120 Speaker 1: the sounds of it, you've gone out to another event 59 00:03:05,160 --> 00:03:07,760 Speaker 1: with them on Friday. What's the goal here? 60 00:03:09,200 --> 00:03:12,720 Speaker 2: So you know that strictly speaking, they are correct. We 61 00:03:12,760 --> 00:03:14,880 Speaker 2: do need to have that final sign off from the 62 00:03:14,919 --> 00:03:18,760 Speaker 2: traditional owners and you know that's the process we're working 63 00:03:18,800 --> 00:03:20,960 Speaker 2: through with them. So looking forward to that final long 64 00:03:21,000 --> 00:03:24,000 Speaker 2: country meeting where we can sit down with the traditional 65 00:03:24,000 --> 00:03:25,640 Speaker 2: owners and seek their final consent. 66 00:03:25,840 --> 00:03:28,000 Speaker 1: And when are you anticipating that that's going to happen, 67 00:03:28,040 --> 00:03:29,640 Speaker 1: And do you feel as though it's going to go 68 00:03:29,760 --> 00:03:33,400 Speaker 1: positively based on the previous discussions or the discussions you've 69 00:03:33,400 --> 00:03:33,960 Speaker 1: had so far. 70 00:03:35,040 --> 00:03:37,840 Speaker 2: Yeah, so we're working with the Northern Land Council to 71 00:03:38,000 --> 00:03:40,160 Speaker 2: arrange that meeting and we expect it to happen in 72 00:03:40,200 --> 00:03:43,960 Speaker 2: the next few months. And you know, based on the 73 00:03:44,040 --> 00:03:47,440 Speaker 2: extensive consultation we've already done, both you know, formal on 74 00:03:47,560 --> 00:03:50,280 Speaker 2: country meetings with the Northern Land Council and also just 75 00:03:50,360 --> 00:03:53,760 Speaker 2: through the work we do directly with traditional owners. I've 76 00:03:53,760 --> 00:03:55,920 Speaker 2: got a high degree of confidence that they will give 77 00:03:56,480 --> 00:03:58,839 Speaker 2: that sign off because you know, we've been working very 78 00:03:58,840 --> 00:04:02,240 Speaker 2: closely with them since only eleven and you know, explaining 79 00:04:02,240 --> 00:04:06,360 Speaker 2: in great detail everything about the project. And so yeah, 80 00:04:06,400 --> 00:04:08,560 Speaker 2: we've got a high degree of confidence that that sign 81 00:04:08,600 --> 00:04:09,160 Speaker 2: off will come. 82 00:04:09,360 --> 00:04:12,960 Speaker 1: And Alex in terms of I mean, obviously there is 83 00:04:13,000 --> 00:04:15,760 Speaker 1: that drilling happening already, but once this is up and 84 00:04:15,840 --> 00:04:19,640 Speaker 1: running at its full capacity, what kind of job creation 85 00:04:19,880 --> 00:04:21,640 Speaker 1: do you anticipate it's going to, say. 86 00:04:22,920 --> 00:04:25,440 Speaker 2: So, I mean, in terms of jobs right now, we've 87 00:04:25,440 --> 00:04:29,080 Speaker 2: probably got somewhere between thirty and forty people on site 88 00:04:29,240 --> 00:04:32,680 Speaker 2: right now working on the drilling of the well, and 89 00:04:32,720 --> 00:04:36,320 Speaker 2: that includes a number of locals. We're also very focused 90 00:04:36,360 --> 00:04:41,080 Speaker 2: on providing opportunities for local businesses. There's one great example 91 00:04:41,160 --> 00:04:45,520 Speaker 2: is a local indigenous bloke who hauls water for us, 92 00:04:45,560 --> 00:04:48,760 Speaker 2: and we've been working with him to help him set 93 00:04:48,800 --> 00:04:51,800 Speaker 2: up his own water hauling business. And you know the 94 00:04:51,839 --> 00:04:55,800 Speaker 2: reality is that if we can get the Beloo demonstrated 95 00:04:55,839 --> 00:04:59,360 Speaker 2: to be clearly commercially viable, then the next stage would 96 00:04:59,400 --> 00:05:03,520 Speaker 2: see significantly more drilling activity and you know, that's going 97 00:05:03,560 --> 00:05:06,080 Speaker 2: to be a lot more jobs than we're seeing right now. 98 00:05:06,160 --> 00:05:08,920 Speaker 2: So I really do see this as you know, sort 99 00:05:08,920 --> 00:05:11,960 Speaker 2: of the kernel of you know, what we're looking to 100 00:05:11,960 --> 00:05:12,599 Speaker 2: build next. 101 00:05:13,440 --> 00:05:16,159 Speaker 1: And you know, in terms of the discussions and with 102 00:05:16,240 --> 00:05:20,000 Speaker 1: the NLC and with the TOOS, is that job creation 103 00:05:20,279 --> 00:05:23,840 Speaker 1: for local Indigenous people part of that discussion also? 104 00:05:25,320 --> 00:05:29,520 Speaker 2: Absolutely. So we signed an export an agreement to go 105 00:05:29,600 --> 00:05:34,120 Speaker 2: through the expiration phase with traditional owners back in twenty fourteen, 106 00:05:34,279 --> 00:05:36,600 Speaker 2: so that followed about two and a honey NLC, and 107 00:05:36,640 --> 00:05:40,200 Speaker 2: we actually made commitments around work for traditional loners back 108 00:05:40,240 --> 00:05:42,240 Speaker 2: at that time, and that that's a commitment that we 109 00:05:42,279 --> 00:05:46,160 Speaker 2: are honoring right now with people working on site. And 110 00:05:46,360 --> 00:05:49,080 Speaker 2: you know, I think when you think about local jobs 111 00:05:49,080 --> 00:05:51,839 Speaker 2: for traditional loaners, first of all, it's their land we're 112 00:05:51,839 --> 00:05:54,479 Speaker 2: operating on, and we are operating as guests on their land, 113 00:05:55,920 --> 00:05:58,120 Speaker 2: so it's a good thing to be Providing work for 114 00:05:58,520 --> 00:06:01,880 Speaker 2: those people. Also helps because they can then go back 115 00:06:01,880 --> 00:06:04,640 Speaker 2: into their communities and explain to the local communities what 116 00:06:04,640 --> 00:06:07,520 Speaker 2: they're learning about, you know, the very high standards that 117 00:06:07,560 --> 00:06:10,800 Speaker 2: we put around safety and environment and so on. But 118 00:06:10,839 --> 00:06:12,880 Speaker 2: it's also just good business for us. You know, we 119 00:06:12,920 --> 00:06:15,880 Speaker 2: don't want a full fly and fly out work for 120 00:06:17,480 --> 00:06:19,880 Speaker 2: We want local people working for us because they live 121 00:06:20,200 --> 00:06:21,480 Speaker 2: near our operations. 122 00:06:22,080 --> 00:06:24,159 Speaker 1: I mean, what do you say to anybody listening this 123 00:06:24,279 --> 00:06:27,320 Speaker 1: morning that you know that's going like that's saying this, 124 00:06:27,560 --> 00:06:30,480 Speaker 1: you know that gas and fracking the Beloo is a 125 00:06:30,520 --> 00:06:33,799 Speaker 1: bad thing, that there's not going to be jobs for locals, 126 00:06:33,920 --> 00:06:36,599 Speaker 1: and that it's going to damage the environment. Like what 127 00:06:36,640 --> 00:06:39,560 Speaker 1: do you say to those people, particularly, you know, when 128 00:06:39,600 --> 00:06:43,160 Speaker 1: you look at at our energy needs as well, not 129 00:06:43,200 --> 00:06:45,440 Speaker 1: only in the Northern Territory but around Australia. 130 00:06:46,920 --> 00:06:48,760 Speaker 2: Well, the first thing I would say is look at 131 00:06:48,760 --> 00:06:52,120 Speaker 2: our own track record. We have never had an allegation 132 00:06:52,200 --> 00:06:55,760 Speaker 2: of actually environmental damage made against it. And you know, 133 00:06:55,839 --> 00:06:58,719 Speaker 2: we've invested probably about two hundred million dollars into the 134 00:06:58,720 --> 00:07:01,960 Speaker 2: local economy so far and that is only set to 135 00:07:01,960 --> 00:07:03,200 Speaker 2: grow with further success. 136 00:07:03,240 --> 00:07:03,760 Speaker 1: In the field. 137 00:07:04,640 --> 00:07:06,479 Speaker 2: But I would also look to the example of the 138 00:07:06,600 --> 00:07:09,640 Speaker 2: United States shale gas sector, which is really where the 139 00:07:09,760 --> 00:07:13,720 Speaker 2: vast majority of shale gas development has occurred. There's about 140 00:07:13,760 --> 00:07:16,760 Speaker 2: three million direct and indirect jobs that have been created 141 00:07:16,800 --> 00:07:19,640 Speaker 2: over there. They have the cheapest energy in the world, 142 00:07:20,080 --> 00:07:22,880 Speaker 2: and they're actually leading the Western world in terms of 143 00:07:22,880 --> 00:07:27,360 Speaker 2: emissions reduction because gas is so much less carbon intensive 144 00:07:28,400 --> 00:07:30,480 Speaker 2: than coal. So you know, I think you just need 145 00:07:30,560 --> 00:07:34,400 Speaker 2: to look at where it's worked before, and you know, 146 00:07:34,480 --> 00:07:35,920 Speaker 2: on our own track record. 147 00:07:36,080 --> 00:07:40,320 Speaker 1: Alex a listener question somebody asking any longer term plans 148 00:07:40,360 --> 00:07:44,880 Speaker 1: to connecting the East Coast via pipelines, So anything additional 149 00:07:44,920 --> 00:07:46,560 Speaker 1: to what we've already. 150 00:07:46,200 --> 00:07:51,000 Speaker 2: Discussed, absolutely, So. As I mentioned before, our commitment to 151 00:07:51,040 --> 00:07:53,360 Speaker 2: the people of the Northern Territory is to make sure 152 00:07:53,400 --> 00:07:56,400 Speaker 2: that the local market is supplied first, and that is 153 00:07:56,440 --> 00:07:59,600 Speaker 2: only the right thing to do because this gas belongs 154 00:07:59,600 --> 00:08:01,760 Speaker 2: to the peace people of the Northern Territory and we 155 00:08:01,800 --> 00:08:05,280 Speaker 2: are very committed to ensuring that the Northern Territory is 156 00:08:05,320 --> 00:08:08,880 Speaker 2: well supplied with gas in the years ahead. But ultimately 157 00:08:09,040 --> 00:08:12,280 Speaker 2: there you know, Australia's East Coast is running desperately short 158 00:08:12,320 --> 00:08:14,880 Speaker 2: of gas. I read just the other day that by 159 00:08:14,920 --> 00:08:19,040 Speaker 2: twenty twenty eight, the Bass Straight gas fields may start 160 00:08:19,120 --> 00:08:21,680 Speaker 2: running dry and so the East Coast does need more 161 00:08:21,720 --> 00:08:24,760 Speaker 2: gas as well. The Beterloo Basin is a very very 162 00:08:24,840 --> 00:08:27,400 Speaker 2: large gas resource, so there should be plenty of gas 163 00:08:27,440 --> 00:08:31,080 Speaker 2: for everyone. And I note that APA Group are working 164 00:08:31,160 --> 00:08:33,880 Speaker 2: on plans to connect into the East Coast and we 165 00:08:33,960 --> 00:08:36,360 Speaker 2: are working with them on those plants well. 166 00:08:36,480 --> 00:08:40,280 Speaker 1: Empire Energies Chief Executive Alex Underwood, good to speak to 167 00:08:40,280 --> 00:08:42,040 Speaker 1: you this morning. I appreciate your time. 168 00:08:42,960 --> 00:08:44,480 Speaker 2: Thanks Katie, thank you.