Empire Energy has announced it has started drilling its Carpentaria-1 well about 85km south-west of Borroloola at an expected cost of $7-$8 million.

It will be only the second well drilled in the Beetaloo Sub-Basin since the lifting of the fracking moratorium in 2018, after Origin Energy's Kyalla-117 horizontal well.

Several companies have resumed exploration in the past month after the August election results became clear.

An easing of pandemic restrictions and the haste to do as much as possible before the wet season kicks in has prompted the rush of activity, as has the "positive" election result.

While there is bipartisan support as both Labor and CLP support the expansion of the onshore gas industry, Terry Mills and Territory Alliance threatened to put a spanner in the works by backflipping in previous policies to campaign against fracking.

The gas companies, through their lobby group Australian Petroleum Production and Exploration Association, advertised heavily during the NT election campaign supporting the onshore gas development.

Empire Energy has revealed it had placed a "10 per cent risk weighting to development risk expectations until the outcome of 22 August Northern Territory elections is known".

It had warned shareholders of the risk "from a reinstatement of a fracking ban in the NT".

Territory Alliance failed spectacularly in the polls, Terry Mills lost his seat, and the gas companies have welcomed the assurance of at least four more years of government support.

Even more, they believe the poll result reveals "an appetite" among NT residents for the gas industry and jobs.

As well, they have been buoyed in recent weeks by the Federal Government's decision to earmark the Beetaloo as a national top priority for development.

For the gas explorers, this commitment could lead to the building of pipelines to take any Beetaloo gas to market.

"The (Beetaloo) province is fast developing as a gas-rich (and potentially liquids-rich) key bolster for east coast Australia's future energy needs and Darwin's expanding LNG export terminals, amid strong policy support from both the Northern Territory and Federal governments," Empire Energy has told shareholders.

"Given the region's high prospectivity, success from future drilling works may generate cashflows within 36-48 months, assuming links and upgrades to existing pipeline infrastructure are delivered in parallel. COVID-19 disruptions delay, rather than dent, the opportunity."

The Carpentaria-1 well will be drilled to almost three kilometres deep "to allow Empire's technical team to fully evaluate the two unconventional shale targets, the Velkerri and Kyalla Shales".

The explorer plans to return early next year for fracking tests.

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