Emperor Energy Locks in Drilling Rig for Judith-2 Gas Well Targeting April 2027
Key Takeaways
- Emperor Energy has executed a term sheet with Valaris to secure the VALARIS 107 jack-up rig for the Judith-2 Appraisal Well, with drilling targeted for April 2027.
- US$1.5 million was paid upon term sheet execution on 8 September 2026, with a further US$2.0 million due by 31 October 2026 upon signing the full-form drilling contract — total committed payments of US$3.5 million.
- VALARIS 107 is already operating in the offshore Gippsland Basin, reducing mobilisation lead time and demonstrating proven performance in the same region as Judith-2.
- NOPSEMA environmental plan approval is expected by end of September 2026, converging with the October drilling contract deadline to create a tight sequence of de-risking milestones.
- The term sheet includes an option to extend the operation to include an additional side-track well, providing upside scope flexibility without requiring a separate rig-securing process.
Rig secured, target drill date set — Judith-2 appraisal moves to execution phase
Emperor Energy (ASX: EMP) has executed a term sheet with ENSCO Australia Pty. Ltd., a subsidiary of Valaris Limited, to secure the VALARIS 107 jack-up drilling rig for the Judith-2 Appraisal Well, with drilling targeted for April 2027. The agreement moves Judith-2 from the planning phase into active execution, marking a significant step forward for the offshore Gippsland Basin gas project.
When big ASX news breaks, our subscribers know first
Key terms of the Valaris 107 term sheet
The term sheet sets out the principal commercial terms for the drilling campaign. The key provisions are:
- US$1.5 million paid upon execution of the term sheet
- US$2.0 million payable upon execution of the full-form drilling contract, targeted by 31 October 2026
- Operating day rate: US$165,000 per day
- Total committed payments of US$3.5 million to be credited against the aggregate drilling contract value
- Further payments to Valaris due in 2027 prior to rig mobilisation
- Rig availability: estimated 30 days to drill the well plus a subsequent 15 days for flow testing
- Option to extend the operation to include an additional side-track well
VALARIS 107 is currently operating in the offshore Gippsland Basin, which provides a logistical advantage: the rig will continue drilling for other operators in the region before moving to the Judith-2 Appraisal Well, reducing mobilisation lead time.
| Milestone | Amount (USD) | Timing | Status |
|---|---|---|---|
| Term sheet execution | US$1.5M | 8 September 2026 | Paid |
| Full-form drilling contract execution | US$2.0M | Targeted by 31 October 2026 | Pending |
| Pre-mobilisation contract payments | TBD | 2027 (prior to mobilisation) | Pending |
What is a jack-up drilling rig and why does it matter here?
A jack-up drilling rig is a mobile offshore drilling unit with retractable legs that extend down to the seabed, allowing the platform to raise itself above the water surface and operate as a stable, fixed drilling platform. VALARIS 107 is well-suited to the Judith-2 well precisely because it is already working in the offshore Gippsland Basin, demonstrating operational performance in the same region and offering a shorter mobilisation lead time than a rig sourced from further afield. For investors, securing the rig this far in advance of the April 2027 target is a meaningful de-risking step: rig availability is frequently the single biggest scheduling constraint for offshore appraisal campaigns, and that constraint is now managed.
Environmental approval on track as Judith-2 milestones converge
Emperor Energy has resubmitted a revised version of the Judith-2 Appraisal Well Environmental Plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), in response to NOPSEMA’s request for further information. Final EP approval is now expected by the end of September 2026.
Two near-term milestones are converging in close sequence, reflecting a systematic approach to de-risking the path to drill:
- NOPSEMA EP approval — end of September 2026
- Full-form drilling contract execution — 31 October 2026
- Further contract payments to Valaris — 2027 (pre-mobilisation)
- Judith-2 Appraisal Well spud — Targeted April 2027
Tim Handley, CEO, Emperor Energy
“The Valaris 107 jack-up drilling rig is operating nearby at a very high level of safety, efficiency and productivity. Securing this drilling rig for April 2027 is a major step forward for Emperor Energy as the company pushes forward towards drilling the Judith-2 Appraisal Well.”
The next major ASX story will hit our subscribers first
What rig security means for Emperor Energy shareholders
The announcement carries material implications for the investment case:
- Rig availability secured. A critical execution risk in offshore appraisal campaigns is now managed, with VALARIS 107 committed to the Judith-2 program.
- Committed capital signals genuine forward momentum. The US$3.5 million in term sheet and contract payments represents real capital deployed, not planning-stage intent.
- Side-track well option provides upside flexibility. The option to extend the operation to include an additional side-track well offers potential scope expansion without requiring a separate rig-securing process.
- April 2027 drill date provides a clear catalyst. Investors now have a defined near-term milestone to anchor their timeline as the Judith-2 appraisal campaign progresses in sequence toward the well.
Don’t Miss the Next ASX Energy Catalyst
Get FREE breaking ASX Oil and Gas alerts delivered to your inbox within minutes of release, complete with in-depth analysis. Join 30,000+ investors already staying ahead of the market with Big News Blast. Click the “Free Alerts” button to receive real-time coverage the moment market-moving energy news breaks.