Empire Energy Group (ASX:EEG) has achieved a major breakthrough by spudding its first oil well since 2014 in the state of Kansas, U.S.
The Thompson #9 well is located in Rooks County and targets the oil producing Arbuckle formation.
The total depth of the well, which has been drilled on a seismic high, is estimated to be circa 3,500 feet.
Empire’s drilling is expected to be completed early this week at which time a decision on completion will be made.
This is the first well to be drilled by Empire since 2014 when drilling programs were halted due to historically low oil prices.
Importantly, stabilised oil prices and significantly lower drilling and completion costs in 2017 provide the basis for Arbuckle wells to be commercially successful at oil prices around US$50 per barrel.
Should favourable oil prices prevail, Empire intends to drill further oil wells in Kansas and Oklahoma over 2017.
Historically, Kansas has been a very prolific oil and gas producing state with cumulative production exceeding 6.1 billion barrels of oil and 37.5 trillion cubic feet of gas.
Arbuckle reservoirs have produced over 2 billion barrels of oil state-wide.
Of the 31 counties in which the Arbuckle has been productive, over 70% of the production has come from 10 counties situated on the Central Kansas Uplift in which Empire operates.
Incidentally, Empire has exploration permits for 14.6 million acres in the Proterozoic McArthur Basin in the Northern Territory, which is considered highly prospective for large shale oil and gas resources.