Empire Energy Group Limited provided shareholders with an update regarding the ongoing flow testing of the Carpentaria-2H ("C-2H") well in Empire's 100% owned and operated EP187 tenement, located in the Northern Territory's Beetaloo Sub-basin. Fluid flowback from C-2H has progressed, with 27.8 per cent of placed fluids recovered to date and water rates declining as the well continues to "clean up". It is particularly encouraging that C- 2H was able to "clean up" (i.e. lift the injected fluids through the well bore to surface) through 4 ½" casing without the need for installation of smaller diameter 2 7/8" production tubing or any artificial lift assistance such as nitrogen enhancement.

Gas flow from C-2H commenced on 5 August 2022 at significant but unmeasurable rates due to slug flow1. Measured gas flow commenced at 10am on 7 August 2022 and has stabilised at an average rate of 2.6 mmscf per day across the stimulated horizontal section of 927 metres (a normalised rate of 2.8 mmscf per day per 1,000 metres) with minimal decline in production rate seen to date over the first 91 hours. The well is currently flowing at 2.5 mmscf per day.

Empire successfully placed 6,283,200 pounds of proppant across the 927 metre (3,041 foot) stimulated horizontal section, representing proppant concentration of 2,066 pounds per foot. As previously announced, Empire is testing four different fluid systems. The trialling of systems included the successful placement of seven slickwater stages without `screening out' which represents a first for any operator in the Beetaloo Sub-basin. Slickwater stimulation fluids may have significant positive cost reduction benefits in a future development scenario.

Empire expects that there will be differing rates of production across the 21 stages because of the fluid systems and perforation strategies tested, which will be determined by 11 gas tracers and 17 water tracers that have been placed across the C-2H horizontal section. Empire is collecting gas and water samples for gas composition and stage contribution analysis. The technical data collected will assist Empire with future completion design to drive optimised well production performance.

Empire intends to apply the most productive system(s) when stimulating the Carpentaria-3H well to be drilled later in 2022.