Emperor Energy Limited (ASX:EMP) announced on 8 September 2026 that it has executed a term sheet with a Subsidiary of Valaris Limited to secure the VALARIS 107 jack-up drilling rig for the Judith-2 Appraisal Well in the offshore Gippsland Basin, Victoria. The agreement represents a key step towards the planned drilling campaign, which is targeted for April 2027, while the company continues progressing environmental approvals required for the project.

Under the term sheet, Emperor has secured access to the VALARIS 107 drilling rig for an estimated 30-day drilling period followed by 15 days of flow testing. The agreement also includes an option to extend operations to include an additional side track well, subject to future decisions.

The Judith-2 Appraisal Well forms part of Emperor Energy’s broader strategy to evaluate and advance its offshore Gippsland Basin gas opportunities.

VALARIS 107 Agreement Secures Drilling Rig Availability for Judith-2

A major component of the latest update is Emperor Energy’s agreement with ENSCO Australia Pty. Ltd., a subsidiary of Valaris Limited, to secure the VALARIS 107 jack-up drilling rig.

The VALARIS 107 is currently operating in the offshore Gippsland Basin and is expected to become available after completing existing drilling commitments in March 2027. Emperor and Valaris are targeting commencement of the Judith-2 Appraisal Well in April 2027.

The term sheet establishes the principal commercial terms for the drilling campaign. Emperor has paid US$1.5 million upon execution of the agreement and is expected to pay a further US$2.0 million upon execution of the full-form drilling contract, targeted for completion by the end of October 2026.

The VALARIS 107 operating day rate has been set at US$165,000, with the initial US$3.5 million in payments credited against the aggregate value of the drilling contract. Additional contract payments are expected to occur in 2027 before mobilisation of the drilling rig.

By securing rig availability ahead of the planned drilling window, Emperor Energy has progressed a key logistical requirement for the Judith-2 program.

Judith-2 Environmental Plan Moves Through Approval Process

Alongside the drilling rig agreement, Emperor Energy continues progressing environmental approvals for Judith-2.

The company has resubmitted a revised Environmental Plan (EP) for the Judith-2 Appraisal Well to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) following a request for additional information. Emperor expects final EP approval by the end of September 2026.

Environmental approval is a key milestone required before offshore drilling activities can proceed. The updated submission reflects the company’s ongoing engagement with the regulatory process ahead of the planned 2027 drilling campaign.

Judith-2 Appraisal Well Represents Next Evaluation Stage

The Judith-2 Appraisal Well is designed to further evaluate the Judith gas field within the Gippsland Basin.

The project forms part of Emperor Energy’s broader focus on developing offshore gas opportunities in the region. Securing drilling infrastructure and progressing regulatory approvals are important steps in preparing for the appraisal program.

According to the company, the VALARIS 107 is currently operating nearby with other operators and has demonstrated ongoing activity in the offshore Gippsland Basin. Emperor highlighted that securing access to the rig supports its pathway towards drilling Judith-2.

Successful completion of the appraisal well and subsequent flow testing would provide further information regarding reservoir performance and future development potential.

Gippsland Basin Position Supports Regional Gas Development Focus

The Gippsland Basin is an established offshore energy region in Victoria with existing oil and gas infrastructure and historical production activity.

Emperor Energy’s Judith gas field opportunity is positioned within this broader basin environment, where access to offshore infrastructure and experienced service providers can influence development pathways.

The company’s focus remains on advancing Judith-2 through the required technical and regulatory stages while preparing for future drilling activities.

Risks and Uncertainty Factors

The Judith-2 Appraisal Well remains subject to several execution and development uncertainties.

The drilling campaign depends on successful completion of the full-form drilling contract, regulatory approvals, rig availability and operational execution. While Emperor has secured the term sheet for VALARIS 107 availability, final contract execution and remaining commercial terms are still being progressed.

Exploration and appraisal drilling also involve geological uncertainty. The results from Judith-2 and subsequent flow testing will determine the characteristics and potential performance of the gas reservoir.

Offshore projects may also involve cost, timing and operational risks associated with drilling activities, environmental requirements and technical execution.

What to Watch Ahead

Investors may continue monitoring Emperor Energy’s progress towards the Judith-2 drilling campaign and associated development milestones.

Key areas of focus include:

  • Completion of the full-form drilling contract with Valaris.
  • Final Environmental Plan approval from NOPSEMA.
  • Preparation and mobilisation activities ahead of the April 2027 drilling target.
  • Results from the Judith-2 Appraisal Well and flow testing.
  • Further updates regarding the Judith gas field development pathway.

Emperor Energy’s latest announcement represents progress towards advancing the Judith-2 Appraisal Well, with drilling infrastructure secured and regulatory approvals moving forward. The company continues focusing on preparing the project for the planned 2027 offshore drilling campaign.