TIDMEME
RNS Number : 6942P
Empyrean Energy PLC
04 September 2017
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
4 September 2017
Empyrean Energy PLC ("Empyrean" or the "Company")
Significant Gas Shows Continue at Dempsey
-- Significant gas shows drilled at Dempsey 1-15 well since last update
-- Drilling ahead below 2,615 m (8,580 feet) to evaluate
multiple remaining conventional sandstone reservoir targets in next
580 m (1,900 feet) of drilling
-- Dempsey is testing the largest known undrilled structure in northeastern Sacramento Basin
-- Empyrean has earned its 30% interest in Dempsey 1-15 well and
surface infrastructure including some minor production from four
existing producing wells
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 Dempsey 1-15
well is currently drilling ahead in 8 1/2" vertical hole.
Since the last update mud logs have indicated additional
significant gas shows. These have occurred even though the drilling
mud weight has been increased to control the levels of background
gas for safe drilling.
The significance of these shows will become more apparent when
the next wireline logs are run to more fully evaluate the
intersected gas shows and reservoirs. This is planned after
reaching the proposed total drilling depth of approximately 3,200
metres.
The Dempsey 1-15 well is currently drilling ahead below 2,615 m
(8,580 feet) to the highly under-explored deeper targeted
reservoirs in the approximately 580 m (1,900 feet) of remaining
section to be drilled.
Dempsey is drilling the largest known, yet undrilled, mapped
structural closure in the northeastern part of the prolific
Sacramento Gas Basin and is interpreted to be optimally located to
trap gas migrating out of gas generating areas located to the west
and south.
Empyrean has now been deemed to have earned its 30% interest in
the Dempsey well and existing infrastructure on the Dempsey well
lease, including some minor production. Any further costs of the
well, including completion costs, will now be at Empyrean's working
interest of 30% of the total. The surface infrastructure includes
the gas metering station at Dempsey and nine wells. Four of the
nine wells are currently contributing some minor production. There
is an opportunity to connect three of these wells and carry out
work overs on the remaining two wells to increase production.
Empyrean CEO Tom Kelly commented, "We are appreciative of
Sacgasco and its local operational team's efforts to continue
drilling the Dempsey 1-15 well to total depth even though a number
of factors are contributing to a slower drilling rate at the
moment. Mud weights have been increased to keep background gas at
bay and help control the well. Some of the rock formations are
hard. Numerous gas shows also contribute to an effort to drill the
well safely, whilst maintaining well integrity to give the best
chance of producing gas following testing and completion. The gas
shows make for slow and steady drilling - but it's a good challenge
to have."
Dempsey Prospect and Dempsey 1-15 Well
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. Individual, unrisked Deterministic Prospective
Resources for the primary targets range from 116 Bcf to 352 Bcf of
recoverable gas. Should all the stacked reservoirs be full of gas,
the cumulative unrisked recoverable Prospective Resources within
the Dempsey prospect could exceed 1 Tcf.
The primary targets are interpreted in a series of Cretaceous
sandstone reservoirs that exhibit structurally consistent amplitude
anomalies similar to those that are observed on seismic data
elsewhere in the basin where conventional sandstone reservoirs have
trapped natural gas in mapped structural closures, for example the
Tulainyo / James and Alvares wells.
Sacgasco expects to intersect gas shows in a number of zones in
the Dempsey 1-15 well and these will be assessed based on the
information available, but quantitative results will need to await
conventional logging after drilling each section of the well and
may need flow testing to be definitive.
The Dempsey 1-15 well is planned to be drilled in three discrete
sections to depths of approximately 600m, 2,000m and 3,200m
associated with decreasing planned casing sizes. The well has been
designed conservatively to provide flexibility to respond to well
bore conditions and progressive results.
Empyrean has also been informed that since the Dempsey 1-15 well
will be exploring for a new gas pool, Sacgasco has requested that
the regulator keep the records confidential for two years as
allowed by Section 3234 of the Public Resources Code of California.
The regulator has approved the "Confidential Status" for Dempsey
1-15 in order to protect longer-term shareholder value.
Aside from compelling technical merit, the Dempsey 1-15 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 announcement has been reviewed by Empyrean's Technical
Director, Mr Frank Brophy BSc (Hons), who has over 40 years
experience as a petroleum geologist.
**S**
For further information:
Empyrean Energy plc
Tom Kelly Tel: +61 8 9380 9920
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 Tel: +44 (0) 20 7236 1177
Olivia Vita 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. Successful testing operations were recently
completed at the Mako South-1 Well with 10.9 million cubic feet of
gas flow and better than expected reservoir quality and multi 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, multi-Tcf gas
prospects, 'Dempsey' and 'Alvares', and an Area of Mutual Interest
(the "Dempsey Trend AMI") 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 is currently drilling and testing the Dempsey Prospect.
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
MSCLIMFTMBTMMIR
(END) Dow Jones Newswires
September 04, 2017 02:26 ET (06:26 GMT)
Empyrean Energy (LSE:EME)
過去 株価チャート
から 6 2024 まで 7 2024
Empyrean Energy (LSE:EME)
過去 株価チャート
から 7 2023 まで 7 2024