TIDMEME
RNS Number : 2538Y
Empyrean Energy PLC
04 December 2017
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
4 December 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" or "the Operator"), the operator of the
Dempsey 1-15 well in the Sacramento Basin, onshore California, that
perforating and flow-testing of the Dempsey 1-15 well is continuing
as planned.
The second zone of gas shows in the well has been perforated and
is in the process of being tested. This zone has flowed dry natural
gas and no water and has confirmed initial shut-in pressures
exceeding 6,000 psi. Further gathering of test data is required
before the Operator has sufficient information to meet regulator
guidelines on reporting results. Analysis of the potential of this
zone is still at a very early stage.
No conclusions as to the potential commerciality of this zone
can be drawn from this early testing.
The testing programme has followed good oilfield practise by
beginning testing from the bottom of the well. These tests are not
in order of interpreted potential based on quality of log and gas
show response. The zone currently being tested is the second of
multiple additional zones to test below the field production level
reservoirs.
The test programme has also been carried out in a methodical and
measured way to ensure safe outcomes. The Dempsey reservoirs are
high pressure and the Operator is working in a considered fashion
to ensure the best outcome for JV partners. Notably, the well
activities include extensive exploration components that require
the assessment of information from each operation as the basis of
design for the following stage. This analysis between tests takes
some time to ensure the Operator receives the maximum resource
information in an efficient way.
While work is still ongoing on Dempsey, planning for a re-entry
of the Alvares gas discovery well is progressing.
Since the last test update, the results of the gas quality from
the first flow test of the lowermost zone in Dempsey 1-15 have
confirmed clean gas of pipeline quality with a Higher Heating Value
(HHV) better than the gas from the overlying field reservoirs in
the Rancho Capay Gas Field.
Additional information on the Dempsey well will be provided as
testing is carried out.
Empyrean CEO Tom Kelly commented, "We are at an early stage of
testing the multiple zones of interest in the Dempsey well. We are
happy with the measured and methodical approach that the Operator
is taking to assess the gas reservoirs."
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 Q3, 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 ft) 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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