Emperor Energy Preps Judith-2 for East Coast Gas Shortage

Emperor Energy (ASX:EMP) is finalising a suite of planning, equipment procurement, and regulatory submissions as it advances the Judith-2 appraisal well off the coast of Victoria. The well, targeted for late Q1 CY27, is the largest undeveloped conventional gas field on the East Coast of Australia, according to the company.

The project carries independently assessed 166 billion cubic feet (BCF) of 2C contingent recoverable gas resource and a 1,859 BCF of P50 prospective recoverable gas resource. The push comes as production from existing Gippsland Basin fields declines, tightening the east coast gas supply balance.

The Regulatory and Equipment Path to Judith-2

Emperor Energy has submitted a revised version of the Judith-2 Well Environmental Plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). The revision addresses all issues raised in an earlier request for further information, completing an extensive suite of preparatory work.

Key Preparatory Milestones

The company reported it has secured supply of identified long lead time equipment, including the surface wellhead, surface conductor casing, and multiple casing strings. The well engineering and planning process has progressed to focus on key service suppliers:

• Tenders currently released for drilling consumables, mudlogging, directional drilling, wireline logging, and logging while drilling (LWD)
• Tenders close to release for cementing and shore-based services
• Contractor selected for a site geophysical survey, planned for August, to identify seabed hazards or shallow gas risk
• Contractor selected for flow testing of Judith-2

The Drilling Rig and Contract Negotiations

Emperor Energy has progressed revisions of draft contract terms with Valaris. The two parties are moving into regular negotiations to finalise a drilling contract for the well. The Valaris-107 Jack-up Drill Rig is currently operating in the offshore Gippsland Basin, and Valaris has confirmed it is available in March 2027.

Why the Judith Field Matters for East Coast Supply

Gas was discovered in the Judith field in 1989 by the Judith-1 exploration well drilled by Shell Australia. At the time, the discovered gas resource was not considered for further development given market conditions and an abundance of existing gas supply from other fields in the Gippsland Basin.

The Supply-Demand Shift

Emperor Energy has reassessed all available data from the Judith gas field, including a recent 3D seismic survey. The reassessment has resulted in the company considering that a substantial economic gas resource exists at Judith.

The Judith-2 appraisal well drilling program is designed to enable a detailed appraisal of the resource. If successful, it will provide Victoria with additional gas reserves as production from existing fields declines.

What this means for the sector: A successful Judith-2 result would add a new source of conventional gas to an east coast market facing structural supply decline from mature fields in the Gippsland and Bass basins. The read-through is direct – any new commercial discovery in this region directly affects the supply-demand balance for gas-fired power generation and industrial users in Victoria and NSW.

The Sector Read-Through: East Coast Gas Producers