Up in the Northern Territory sits the McArthur Basin, a region described by oil and gas legend Aubrey McClendon as having the potential to be “one of the most prolific hydrocarbon producers for the next 50-100 years”.

McClendon co-founded Chesapeake Energy (capped at $37.5 billion at its peak) and needless to say had an eye for a good deal – however he tragically passed away earlier this year.

There was one particular tract of land in the McArthur Basin that caught McClendon’s attention, and that was 15 million acres of prime ground controlled by Empire Energy Group (ASX: EEG).

McClendon struck a $175M, two stage Definite Farm Out Agreement with EEG, however following his untimely passing, the farm out agreement has been put on hold.

While sad, the roll back of that deal could potentially open the door for investors to get in on the ground floor of EEG’s next push for a new game-changing farm-out deal.

Given the prospectivity of its NT acreage, EEG recently beefed up the economic value of its reserves.

The $6 million capped EEG has tipped its prospective resources in the NT beyond the 2 billion barrel of oil equivalent mark.

That’s a large number, however exploration is currently on hold pending the results of the NT election this weekend which could change fracking rules, and may impact EEG’s farm out attractiveness.

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Aside from the NT, EEG’s onshore US assets continue to produce oil and remain profitable.

And with distressed assets coming on sale in the US market, and the oil price showing signs of recovery, EEG may be ready to pounce and expand its production assets in the near term…