empire energy group (ASX: EEG) has recently made good progress and announced the approval of an environmental management plan and the start of drilling. Today, the company announced that it has entered into a binding letter of commitment with Macquarie Bank for a $65 million financing package to advance the Beetaloo Basin project. The funding consists of three facilities designed to support key initiatives including exploration, infrastructure construction and environmental obligations.

The funding includes a $30 million research and development (R&D) facility, up from $2.25 million, tied to future tax rebates under the Australian Research and Development Tax Incentive. The funding will cover exploration and infrastructure activities, including the Carpentaria-5H well. In addition, a $5 million performance bond facility will address the Northern Territory’s environmental assurance requirements. Finally, a new $30 million midstream infrastructure facility will fund the renovation and construction of the Carpentaria gas plant, with repayments made up of tolls.

Managing Director Alex Underwood commented: This package will enable us to progress towards trial production in 2025, targeting demand in the Northern Territory and Australia’s east coast markets. ”

Empire is currently drilling the intermediate section of the Carpentaria-5H well and plans to target the middle of the Verkeli B shale formation. The company reported a cash balance of $34.8 million as of September 2024.

The stock is trading 2.38% higher at 21.5 cents.