TIDMEME
RNS Number : 1631K
Empyrean Energy PLC
05 July 2017
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
05 July 2017
Empyrean Energy PLC ("Empyrean" or the "Company")
Completion of Mako South-1 Well with Stabilised Flow Rates
-- Mako South-1 well exceeds operator's expectations
-- High permeability sands in the multi Darcy range
-- High quality gas with no contaminants
-- Final stabilised flow rate of 10.9 million cubic feet of gas per day
-- Flow rate limited by available down hole production testing equipment
Empyrean, the oil and gas development company with interests in
China, Indonesia and the United States, is pleased to announce that
it has been advised by the operator of the Duyung PSC in the Natuna
Basin Offshore Indonesia, Conrad Petroleum ("Conrad") that the Mako
South-1 well testing operations has been successfully completed and
the rig is currently demobilising back to its home base in Labuan,
Malaysia.
Conrad has reported that the well performance was exceptional,
and the drilling operations were carried out on time, on budget and
with zero safety incidents.
Testing of the previously discovered gas-bearing sand at the
Mako South-1 well has established 23 feet of net pay in the shallow
Intra Muda Formation, with excellent quality rock, far better than
Conrad's original prognosis. The well flowed high quality gas that
is close to 100% methane, with no CO2, H2S, or other contaminants.
No sand production was recorded during testing.
As previously reported on 28 June 2017, a final stabilised flow
rate of 10.9 million cubic feet of gas per day ("mmcfgpd") was
reached during testing on fixed choke of 128/64. The flow rate was
limited by the available down hole production testing equipment.
Down hole pressure gauges retrieved following the flow test
confirmed no pressure depletion over the extended production test.
Conrad reports that the test results suggest that the reservoir
consists of laterally continuous, high permeability sands in the
multi Darcy range. Further permeability analysis will take place
over the coming months on the core taken prior to flow testing.
Mako is a very large gas accumulation with a lateral extent of
approximately 340km(2) . With the addition of the Mako South-1
well, four wells have now penetrated the Intra Muda Formation, but
Mako South-1 is the only well to have been production tested.
Testing operations conducted over several days collected a raft of
important data. Conrad now plans to thoroughly analyse the latest
information (both the production test and other down hole data
including core), and aggregate it with that from previous wells in
order to progress a development plan.
Empyrean owns 10% of West Natuna Exploration Limited ("WNEL"), a
holding company that owns 100% of the Duyung PSC. Conrad own the
remaining 90% of WNEL.
Shareholders and interested parties can also view a short Vimeo
presentation of photos and video taken by Conrad during the testing
operations via the link www.vimeo.com/conradpetro/mako
Further announcements will be made in due course.
Tom Kelly, Empyrean CEO, commented: "Empyrean once again
commends the entire Conrad team for their excellent planning and
execution of the Mako South-1 well drilling and testing operations.
The results have exceeded everyone's expectations. An excellent
flow rate of 10.9 million cubic feet of gas per day that was
limited by the available down hole equipment and may, subject to
full analysis of core and other data have room for improvement is
simply such a pleasing result for all of our shareholders. These
results dramatically de-risk this project and confirm a very large
accumulation of gas with terrific reservoir quality in a region
that achieves high gas prices due to high regional demand. With
planning for our high impact Dempsey-1 well in the Sacramento
Basin, California progressing very nicely we expect the coming
weeks to be extremely exciting as we execute further our aggressive
high impact exploration campaign".
**ENDS**
For further information:
Empyrean Energy plc
Tom Kelly Tel: +61 8 9481 0389
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. Empyrean is currently participating in
drilling the Mako South-1 well which has recorded better than
expected flow rates, porosity, permeability and gas saturation in
the target Intra Muda Formation than expected. A stabilised flow
rate of 10.9 million cubic feet of gas per day with multi Darcy
permeability and excellent reservoir characteristics was
recorded.
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' (Empyrean earning 30%) and 'Alvares' (Empyrean
earning 25%) and an Area of Mutual Interest (the "Dempsey Trend
AMI")(Empyrean earning 30%) 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 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
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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