Source - RNS
RNS Number : 3867J
Empyrean Energy PLC
28 June 2017
 

This announcement contains inside information

 

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

28 June 2017

Empyrean Energy PLC ("Empyrean" or the "Company")

 

Mako South-1 Well Flows Gas at a Rate of 10.9 Million Cubic Feet of Gas Per Day

 

Empyrean, the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has been advised by the operator of the Duyung PSC in the Natuna Basin Offshore Indonesia, Conrad Petroleum ("Conrad") that the Mako South-1 well has flowed on Drill Stem Test ("DST") at a rate of 10.9 Million Cubic Feet of Gas Per Day ("mmcfgpd") on a choke of 128/64. The well is currently shut in for buildup.

 

Cleanup operations commenced early on 26 June 2017 and by midday on 27 June 2017, the well was flowing at a rate of 10.9 mmcfgpd through 128/64 inch choke with a surface flowing pressure of 225 psi.  The gas is pure methane completely devoid of any traces of H2S (hydrogen Sulphide) or CO2 (carbon dioxide).

 

Further announcements will be made in due course.

 

Tom Kelly, Empyrean CEO, commented: "Empyrean is absolutely delighted with the rate gas has flowed at Mako South-1 well, our first major exploration project since our efforts of re-building the portfolio. It is a great credit to the Conrad team and Empyrean's participation has been made possible through the efforts of our Mr. Frank Brophy. We have a very aggressive and potentially transformational programme over the next 6 months and our first project achieving this level of success has exceeded both ours and Conrad's expectations. We look forward to exciting months ahead as we continue to unlock value for our shareholders".

 

**ENDS**

 

For further information:

 

Empyrean Energy plc


Tom Kelly

Tel: +61 8 9481 0389



Cenkos Securities plc


Neil McDonald

Tel: +44 (0) 131 220 9771

Beth McKiernan

Tel: +44 (0) 131 220 9778

Nick Tulloch

Tel: +44 (0) 131 220 9772



St Brides Partners Ltd


Lottie Brocklehurst

Olivia Vita

 

Tel: +44 (0) 20 7236 1177

Tel: +44 (0) 20 7236 1177

 

 

The information contained in this announcement was completed and reviewed by the Company's Technical Director, Mr Frank Brophy, who has over 40 years' experience as a petroleum geologist.

 

Notes to Editors

 

About Empyrean Energy Plc (LON: EME)

Empyrean is a London AIM listed oil and gas explorer with three potentially high impact new projects. Empyrean has a 1800km2 offshore oil permit located in the Pearl River Mouth Basin, China where it has commenced 3D seismic Q2, 2017 to further mature two large oil prospects, Jade and Topaz. The permit is directly South East of the billion barrel+ Liuhua Oil Field operated by CNOOC and two recent discoveries to the permits West and South further enhance the merit of Jade and Topaz. Empyrean is operator and holds 100% of the exploration rights through to commercial discovery where CNOOC have a back-in right to 51%.

 

Empyrean also has a 10% interest in West Natuna Exploration Limited that holds 100% of the Duyung PSC in offshore Indonesia and is targeting the Mako Shallow Gas Discovery that has an independently verified 2C and 3C gas resource of between 430-650 Bcf recoverable gas. Empyrean is currently participating in drilling the Mako South-1 well which is planned to take core, run a full suite of modern logs and conduct a flow test.

 

Empyrean also has a joint venture with ASX listed Sacgasco Limited on a suite of projects in the Sacramento Basin, onshore California, USA. The package includes two mature, multi-Tcf gas prospects, 'Dempsey' (Empyrean earning 30%) and 'Alvares' (Empyrean earning 25%) and an Area of Mutual Interest (the "Dempsey Trend AMI")(Empyrean earning 30%) that includes at least three already identified, large Dempsey-style follow up prospects.  Dempsey is a large structure mapped with 3D seismic and interpreted by Sacgasco to have the potential to hold a prospective resource of over 1 Tcf of gas in up to seven stacked target reservoirs. The Company plans to commence a 3,200 metre (~10,500 feet) combined appraisal and exploration well, Dempsey-1, in Q3 2017 to evaluate this prospect. 

 

Aside from compelling technical merit, the Dempsey-1 well location sits next to existing gas metering and surface infrastructure that is owned by the joint venture. This will allow for any gas discovery to be tested and connected into the local pipeline at relatively low cost and in an accelerated timeframe. This early potential for short-term cash flow in the event of a commercial discovery would be significant for the joint venture and for the state of California where gas demand is high and approximately 90% of consumption is imported from other states. Gas produced in the Sacramento Basin currently prices at a 10-15% premium to Henry Hub Gas Prices.   The joint venture will be drilling and testing the Dempsey Prospect, a 1 Tcf gas target in Q3, 2017.

 

Alvares is a large structure mapped with 2D seismic and interpreted by Sacgasco to hold prospective resources of over 2 Tcf estimated potential recoverable gas. A well drilled by American Hunter Exploration Limited in 1982 for deeper oil intersected 5,000ft of gas shows. No valid flow test was conducted due to equipment limitations and the deeper oil target failing.  However minor gas flows to surface were recorded even with these limitations. The possibility of using the existing well bore to sidetrack and get a valid flow test, thus reducing costs will be examined.

 

The Dempsey Trend AMI is an Area of Mutual Interest extending to approximately 250,000 acres and containing the Dempsey prospect (described above) as well as at least three other, Dempsey-style prospects which have been identified on existing seismic.

 

 

www.empyreanenergy.com

 

About Sacgasco Limited (ASX. SGC)

Sacgasco Limited (ASX: SGC) is an Australian-based energy company focused on conventional gas exploration in the Sacramento Basin, onshore California. SGC has an extensive portfolio of gas prospects at both exploration and appraisal stages, including multi-Tcf opportunities. The Company is targeting gas supply to the local Californian gas market and burgeoning LNG market in North America.  SGC is of the view that the size of the prospects in California have the potential to supply both the domestic Californian gas market and export LNG markets.

www.sacgasco.com 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCSEISMAFWSEDM