Emperor Energy Clears Final Hurdle for Judith-2 Well Drilling in April 2027
Key Takeaways
- NOPSEMA has accepted Emperor Energy's Judith-2 Drilling Environment Plan, removing the primary regulatory barrier to drilling at the Judith Gas Field in the offshore Gippsland Basin.
- The VALARIS 107 jack-up rig is secured under a Term Sheet Agreement executed in September 2026, with availability expected following completion of its current commitments in March 2027 — directly supporting an April 2027 spud date.
- Judith-2 targets a 166 Bcf 2C Contingent recoverable gas resource originally discovered by Shell in 1989, with Emperor Sand 3 contributing the largest single estimate at 85.2 Bcf on a 2C basis.
- The well also carries exploration upside via the deeper Longtom gas sands, which have never been penetrated at the Judith Structure — GaffneyCline estimated a 142 Bcf P50 Prospective recoverable gas resource in these sands as of June 2025.
- The broader Judith structure holds a total 1.859 Tcf P50 Prospective recoverable gas resource, with Judith-2 targeting only one portion of it.
NOPSEMA greenlights Judith-2 — Emperor Energy clears the key regulatory hurdle
Emperor Energy (ASX: EMP) has secured approval from NOPSEMA for its Judith-2 Appraisal Well Drilling Environment Plan, clearing the key regulatory gateway required before any drilling can commence at the Judith Gas Field in the offshore Gippsland Basin, Victoria.
The approval arrives at a critical juncture. Emperor executed a Term Sheet Agreement to secure the VALARIS 107 jack-up rig on 8 September 2026, and the NOPSEMA acceptance now confirms the key regulatory approval has been secured. With the rig expected to become available following completion of its current commitments in March 2027, the company is targeting an April 2027 spud date for Judith-2.
These two milestones converging in the same month signals a clear path to the drill bit.
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What Judith-2 is chasing — the resource at stake
Judith-2 has a dual objective, and the distinction matters. The primary goal is to appraise a known resource: the 166 Bcf 2C Contingent recoverable gas originally discovered by Shell in 1989 within the Judith Structure. Appraising this resource is the foundational task — confirming it, characterising it, and moving it toward a development decision.
The second objective is exploration upside. The well will also drill into the deeper Longtom gas sands beneath the known contingent resource. These sands have never been penetrated in the Judith Structure before. Independent assessor GaffneyCline estimated a 142 Bcf P50 Prospective recoverable gas resource in these deeper Longtom sands as of 20 June 2025, forming part of a total 1.859 Tcf P50 Prospective recoverable gas resource across the broader Judith structure.
That headline number puts the scale of the Judith structure into perspective. The well targets only one portion of it.
The known contingent resource is spread across four reservoir zones within the Emperor Formation. The breakdown by confidence category is presented below.
| Reservoir | Low 1C (Bcf) | Best 2C (Bcf) | High 3C (Bcf) |
|---|---|---|---|
| Emperor Sand 1 | 7.8 | 23.4 | 41.6 |
| Emperor Sand 2 | 12.6 | 41.8 | 66.4 |
| Emperor Sand 3 | 23.7 | 85.2 | 117 |
| Emperor Sand 4 | 5.6 | 15.4 | 34.8 |
| TOTAL | 49.6 | 165.7 | 259.8 |
Source: Gaffney Cline, as of 20 June 2025. Development Unclarified Gross Contingent Resources. Deterministic Estimation.
The 2C column represents the best estimate. Emperor Sand 3 carries the largest single contribution at 85.2 Bcf on a 2C basis, accounting for more than half of the 165.7 Bcf total.
What is NOPSEMA and why does this approval matter?
NOPSEMA stands for the National Offshore Petroleum Safety and Environmental Management Authority. It is Australia’s independent regulator for offshore petroleum operations, covering safety, well integrity, and environmental management across the country’s offshore waters.
The Drilling Environment Plan (EP) is not a procedural checkbox. It is the primary regulatory gateway that an operator must satisfy before a single metre of offshore well can be drilled. NOPSEMA’s assessment covers:
- Environmental impact and risk management
- Well integrity and safety controls
- Emergency response planning
- Regulatory compliance with offshore petroleum legislation
Without NOPSEMA acceptance of the EP, drilling cannot proceed regardless of how ready the rig or the company may be. The approval confirms Emperor has met environmental management standards for the well.
For investors, the implication is straightforward. This was a key regulatory milestone standing between Emperor and the drill floor. It has now been cleared.
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Rig secured, approval in hand — what comes next
The convergence of these two milestones — rig term sheet executed in September 2026 and NOPSEMA approval received in September 2026 — brings the April 2027 target spud date into clear focus.
The VALARIS 107 is currently operating in the offshore Gippsland Basin, the same region as the Judith Gas Field. Based on its existing programme, it is expected to become available following the completion of its current commitments in March 2027, directly feeding into the April target.
What a successful result could mean for Emperor’s resource position is material. A positive appraisal of the 2C Contingent Resource could support the information base required for a development decision, potentially moving volumes from contingent to a more advanced classification. Penetration of the Longtom gas sands introduces exploration upside that has never been tested at the Judith Structure, with 142 Bcf P50 on the table if the geology proves up.
The April 2027 spud date is the next key catalyst on the Emperor Energy timeline. With regulatory approval secured and a rig under term sheet, these two milestones support the target April 2027 spud date.
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