EMPYREAN ENERGY PLC Regulatory Story
Empyrean Energy PLC - EME Dempsey Testing Update Released 07:25 16-Apr-2018
RNS Number : 9468K
Empyrean Energy PLC 16 April 2018
This announcement contains inside informa�on
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas
16 April 2018
Empyrean Energy PLC ("Empyrean" or the "Company")
Dempsey Tes�ng Update
· Flow of clean natural gas at 195 mcfpd from Test Zone 3
· Confirms gas saturated rocks over a 2000+ foot ver�cal interval
· More gas zones to be tested shortly prior to field produc�on zone tes�ng
· Poten�al to combine gas from all flow zones to deliver cash flow
· Mul�ple op�ons to increase Dempsey's produc�on and develop the broader field
Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has been informed by Sacgasco Limited (ASX: SGC) ("Sacgasco"), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that the tes�ng of Zone 3 in the Dempsey 1-15 well has resulted in a further flow of clean natural gas with the quality of the gas samples consistent with other zones. Zone 3 perfora�ons flowed gas at 195 mcfpd on 16/64" choke with a FTP of 118 psi and no water. The well is currently shut-in to enable short-term pressure build up measurements.
The operator will now test a shallower gas filled reservoir zone (Zone 4) while maintaining access to the two deeper producing intervals (Zones 2 and 3), with the op�on to perforate and flow test gas filled reservoirs at the field produc�on level.
The operator plans a dual comple�on to produce natural gas from the yet to be tested Zone 4, and previously tested Zones 2 and 3. Likely commercial gas flows from field produc�on zones can also be tested shortly and may be produced along with gas from Zones 2 to 4. Aggregated gas flows from all of these zones can generate cash flow from the Dempsey well very quickly given the well is already �ed into the produc�on system.
Produc�on data collected assists the Joint Venture in designing a forward development programme for the well and Dempsey Field to enhance overall produc�on. There is considerable op�onality to extract value from the Field, including fracture s�mula�on.
Empyrean CEO Tom Kelly commented, "Our Dempsey well con�nues to excite from a technical perspec�ve and with surface produc�on facili�es owned by the JV in very close proximity to the well we remain confident that we can capitalise economically on any gas put into longer term produc�on."
**ENDS** | |
For further informa�on: | |
Empyrean Energy plc | |
Tom Kelly | Tel: +61 8 9380 9920 |
Cenkos Securi�es plc | |
Neil McDonald | Tel: +44 (0) 131 220 9771 |
Beth McKiernan | Tel: +44 (0) 131 220 9778 |
St Brides Partners Ltd | |
Lo�e Wadham | Tel: +44 (0) 20 7236 1177 |
Frank Buhagiar | Tel: +44 (0) 20 7236 1177 |
The informa�on contained in this announcement was completed and reviewed by the Company's Execu�ve Director, Mr Gajendra (Gaz) Bisht, who has over 28 years' experience as a petroleum geoscien�st.
Notes to Editors
About Empyrean Energy Plc (LON: EME)
Empyrean is a London AIM listed oil and gas explorer with three poten�ally high impact new projects. Empyrean has a 1800km2 offshore oil permit located in the Pearl River Mouth Basin, China where it has completed 3D seismic in Q3, 2017 to further mature two large oil prospects, Jade and Topaz. Processing and interpreta�on is underway and preliminary internal interpreta�on of the raw seismic data has confirmed the structural validity of the Jade and Topaz prospects and also iden�fied a third significant target named Pearl, which is located north of 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 explora�on rights through to commercial discovery where CNOOC have a back-in right to 51%.
Empyrean also has a 10% interest in West Natuna Explora�on Limited that holds 100% of the Duyung PSC in offshore Indonesia and is targe�ng the Mako Shallow Gas Discovery that has an independently verified 2C and 3C gas resource of between 430-650 Bcf recoverable gas. Successful tes�ng opera�ons were recently completed at the Mako South-1 Well with 10.9 million cubic feet of gas flow and be�er than expected reservoir quality and mul� Darcy permeability. The operator is currently analysing data with a view to providing a development plan.
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, mul�-Tcf gas prospects, 'Dempsey' and 'Alvares', and an Area of Mutual Interest (the "Dempsey Trend AMI") that includes at least three already iden�fied, large Dempsey-style follow up prospects. Dempsey is a large structure mapped with 3D seismic and interpreted by Sacgasco to have the poten�al to hold a prospec�ve resource of over 1 Tcf of gas in up to seven stacked target reservoirs. The joint venture has completed drilling of a 2,970 metre (9,747 fee) combined appraisal and explora�on well; Dempsey 1-15, to evaluate this prospect. Wireline logs confirmed numerous zones for produc�on tes�ng.
Aside from compelling technical merit, the Dempsey-1 well loca�on sits next to exis�ng 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 rela�vely low cost and in an accelerated �meframe. This early poten�al 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 consump�on 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 is currently tes�ng the Dempsey Prospect.
Alvares is a large structure mapped with 2D seismic and interpreted by Sacgasco to hold prospec�ve resources of over 2 Tcf es�mated poten�al recoverable gas. A well drilled by American Hunter Explora�on Limited in 1982 for deeper oil intersected 5,000� of gas shows. No valid flow test was conducted due to equipment limita�ons and the deeper oil target failing. However minor gas flows to surface were recorded even with these limita�ons. The possibility of using the exis�ng 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 iden�fied on exis�ng seismic.
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Empyrean Energy plc published this content on 16 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 April 2018 06:56:01 UTC
