Empire Oil & Gas NL provided the following update on the Red Gully North-1 (RGN-1) data analysis and it's future plans following the well-test program completed in January 2017. An analysis of the hydrocarbons extracted from the C sand during the flow test of RGN-1 has confirmed that the hydrocarbons are a volatile light oil. The overall size of the C sand oil resource will be assessed on completion of the reservoir fluid study in early April 2017. Empire is currently planning to commence an Extended Production Test (EPT) in third quarter 2017 which, if successful, will enable Empire to book oil reserves for the field. Initial analysis indicates that the EPT will be revenue positive based on the sale of oil. Empire's existing condensate customer has recently agreed to purchase the 1,050 barrels of oil produced from the C sand test completed in January 2017. Empire have started negotiations for the sale of oil produced during the planned EPT. Assuming adequate reserves are established, Empire will commence commercial production at RGN-1, either as a standalone operation or tied back into Empire's Red Gully Production Facility. Empire has completed a log analysis on RGN-1 based on oil parameters indicating a P90 net 5 m of oil pay with greater than 9% porosity. the company is also initiating a review of historical data over the C sand in previously drilled wells to determine if there is overlooked oil potential within Empire's existing acreage portfolio, particularly northern EP 389. The results of this study will be available in second quarter 2017. An assessment of the light oil resource volume will be completed in the first half of April. It is anticipated that a 3-6 month standalone EPT will then be planned to commence in third quarter CY2017. The company has assessed the costs of all the EPT equipment required. A significant amount of this equipment was used in the January test. Importantly this EPT would be revenue positive as the proceeds received from the anticipated sale of oil produced is expected to exceed the cost of equipment and personnel required to conduct the EPT. A wireline conveyed downhole jet-pump system is the preferred downhole artificial lift technique to maximise oil recovery in the C sand and handle produced water volumes. Empire may also use the jet-pump to unlock the Upper D sand gas potential, as test data indicates that the zone had not fully unloaded completion brine lost during initial completion operations, and therefore, further testing may be warranted. The EPT would then enable Empire to book reserves for the discovery, subject to technically and commercially positive results, leading to development of the RGN-1 oil field either as a standalone project or tied back to the Red Gully Production Facility.