Empyrean Energy PLC Seismic Data Results Exceed Expectations (0400Q)

TIDMEME

RNS Number : 0400Q

Empyrean Energy PLC

07 September 2017

This announcement contains inside information

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

7 September 2017

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

Offshore China Block 29/11 Initial Seismic Data Results Exceed Expectations

-- Preliminary mapping of 'raw seismic 3D data' confirms structural validity of Jade and Topaz prospects and identifies a third significant target named Pearl

   --     Jade preliminary mean unrisked resource potential 103 million barrels ('mmbbls') oil 
   --     Topaz preliminary mean unrisked resource potential 365 mmbbls oil 
   --     Pearl preliminary mean unrisked resource potential  123 mmbbls oil 
   --     Full data processing and oil migration studies are on-going

Empyrean Energy plc (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has finalised the preliminary internal interpretation of the 'fast-tracked' processing of raw seismic data from the recently acquired 3D seismic on Block 29/11, offshore China. This preliminary interpretation has confirmed the structural validity and the potential size of the Jade and Topaz prospects and has revealed an exciting new prospect named Pearl which is located to the north of Topaz.

A summary of the interpretation of gross unrisked mean prospective resources for Jade, Topaz and Pearl is provided in the table below:

 
 Prospect           Preliminary Prospective Resources 
                            Estimates (mmbbls) 
----------  ------------------------------------------------ 
             Low estimates   Best estimates   High estimates 
----------  --------------  ---------------  --------------- 
 Jade                   89              103              143 
----------  --------------  ---------------  --------------- 
 Topaz                 280              365              498 
----------  --------------  ---------------  --------------- 
 Pearl                  84              123              206 
----------  --------------  ---------------  ---------------

Empyrean CEO Tom Kelly commented, "Empyrean is excited to confirm that, based on our internal preliminary analysis, Block 29/11 contains prospects of truly significant scale and size. That the three priority targets have a cumulative mean potential to contain 591 million barrels of oil is a great early result from the 3D seismic data recently acquired. We will obtain better resolution and imaging from the full processing of data, a process which is underway and the results of which will be announced in due course, but these early results greatly exceed our expectations and the data quality is excellent."

Gaz Bisht, Empyrean's executive director responsible for China who has over 28 years' experience as a petroleum geologist and geophysicist has reviewed and prepared the announcement.

**ENDS**

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 is currently drilling and testing 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

This information is provided by RNS

The company news service from the London Stock Exchange

END

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September 07, 2017 02:00 ET (06:00 GMT)

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