Empyrean Energy said it had been informed by Sacgasco, the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that flow-testing and completion of the well is continuing as planned. Empyrean said the well's lowest zone, a thin sand with poor reservoir characteristics based on the wireline logs, had been perforated and has flowed clean, dry natural gas and no water.
It said: 'The gas has flowed at rates that are sub-commercial at current gas market prices.
'However, analysis of this zone, and its full potential, remain at an early stage.
'The tested zone has been isolated and preparations are underway for the next stage of testing which will target the next shallower zone of gas shows.' Empyrean chief executive Tom Kelly said: 'Testing of Dempsey 1-15 is continuing in a safe and efficient manner.
'Whilst the lowest zone has been determined as "sub-commercial" at the current gas prices, we remain optimistic as to the potential of the Dempsey 1-15 well following the significant gas shows encountered whilst drilling and we look forward to seeing more encouraging results from further upcoming tests.'
At 8:03am: (LON:EME) Empyrean Energy PLC share price was -5.13p at 16p