TIDMEME
RNS Number : 4174W
Empyrean Energy PLC
14 November 2017
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
14 November 2017
Empyrean Energy PLC ("Empyrean" or the "Company")
Dempsey Gas Well Update
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 flow-testing and
completion of the well is continuing as planned.
The well's lowest zone, a thin sand with poor reservoir
characteristics based on the wireline logs, has been perforated and
has flowed clean, dry natural gas and no water. 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 CEO Tom Kelly commented, "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."
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.
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.
**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
St Brides Partners Ltd
Lottie Wadham 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 completed 3D seismic in Q2, 2017 to further mature two
large oil prospects, Jade and Topaz. Processing and interpretation
is underway and preliminary internal interpretation of the raw
seismic data has confirmed the structural validity of the Jade and
Topaz prospects and also identified 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 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 joint venture
has completed drilling of a 2,970 metre (9,747 fee) combined
appraisal and exploration well; Dempsey 1-15, to evaluate this
prospect. Wireline logs confirmed numerous zones for production
testing.
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 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
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