Empyrean Energy PLC Independent Oil in-place Estimates for Block 29/11 (8893G)
November 09 2018 - 2:30AM
UK Regulatory
TIDMEME
RNS Number : 8893G
Empyrean Energy PLC
09 November 2018
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
9 November 2018
Empyrean Energy PLC ("Empyrean" or the "Company")
Gaffney Cline & Associates review of Oil in-place
Estimates completed for Prospects in Block 29/11,
Pearl River Mouth Basin, offshore China
Empyrean Energy (EME: AIM), the oil and gas development company
with interests in China, Indonesia and the United States, is
pleased to announce that Gaffney, Cline & Associates ("GCA"),
an independent petroleum advisory firm, has completed its
independent audit of the Company's oil initially in place estimates
over the Jade, Topaz and Pearl prospects identified in Block 29/11,
Pearl River Mouth Basin, offshore China, in which the Company has a
100% working interest (the "STOIIP Audit") .
Highlights
-- Total Mean Oil in-place increased 9% to 884 MMbbl from 814 MMbbl on an un-risked basis
-- GCA's estimates of Geological Chance of Success of Jade and
Topaz prospects is 32% and 30% respectively
-- The independent assessment validates the Company's internal estimates announced in June 2018
-- The total P10 estimates increased 47% to 1588 MMbbl from 1081 MMbbl on an un-risked basis
EME requested that GCA undertake the STOIIP Audit and an
assessment of the geological chance of success ("GCoS") of the
three prospects identified on Block 29/11 following comprehensive
internal processing and interpretation of the 608km(2) of 3D
seismic data that the Company successfully acquired in 2017. The
Company completed this initial internal exercise in respect of
processed data in June 2018 using both internal technical
capabilities, provided by experienced geoscientist, Gaz Bisht, and
an additional expert consultant geophysicist, with the results
announced on 6 June 2018 (shown in Table 1 below).
GCA's audit primarily consisted of reviewing, checking and
validating the available data and existing interpretations and
auditing the technical work that has been performed by EME and its
contractors.
GCA used a probabilistic method to generate its results and
estimated the STOIIP using a 1D Monte Carlo model based on
estimates of gross rock volume and reservoir parameters. GCA's
estimates of STOIIP for the Jade, Topaz and Pearl Prospects
together with GCA's estimates of GCoS are shown in Table 1
below.
Table 1: EME and GCA estimates of STOIIP (November 2018)
Block 29/11 China: Oil in-place MMbbl
EME Internal Estimate GCA STOIIP Audit
----------------------------------- ------------------------------
June 2018 November 2018
----------------------------------- ------------------------------
Prospect P90 P50 P10 Mean P90 P50 P10 Mean GCoS
---- ---- ----- ---- ---- ----- -----
Jade 110 183 230 202 93 187 395 225 32%
---- ---- ---- ----- ---- ---- ---- ----- -----
Topaz 298 431 631 453 211 434 891 506 30%
---- ---- ---- ----- ---- ---- ---- ----- -----
Pearl 105 152 220 159 38 121 302 153 15%
---- ---- ---- ----- ---- ---- ---- ----- -----
Empyrean CEO Tom Kelly commented, "The independent review of
three prospects, recently undertaken by GCA, is very encouraging
and supports the work undertaken internally by Empyrean. It is
particularly pleasing to see that the Jade and Topaz prospects are
expected to have close to a 1-in-3 chance of geological success and
over a billion barrels of potential oil in-place, combined, on a
P10 basis un-risked. By industry standards, these numbers are
excellent. The work done by GCA certainly supports Empyrean's view
on the potential size and attractiveness of these prospects. We are
excited by the increased potential of Block 29/11 and of the
attractive GCoS of our two main prospects, in particular. We made a
determined effort to secure Block 29/11 in 2016 and have made a
significant investment and commitment. It is pleasing to see
independent expert validation of a major component of our work so
far as we work towards unlocking value for our shareholders."
Cautionary Statement: The volumes presented in this announcement
are STOIIP estimates only. A recovery factor needs to be applied to
the undiscovered STOIIP estimates based on the application of a
future development project. The subsequent estimates, post the
application of a recovery factor, will have both an associated risk
of discovery and a risk of development. Further exploration,
appraisal and evaluation is required to determine the existence of
a significant quantity of potentially movable hydrocarbons.
**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
Frank Buhagiar Tel: +44 (0) 20 7236 1177
The information contained in this announcement was completed and
reviewed by the Company's Executive Director (Technical) , Mr
Gajendra (Gaz) Bisht, who has over 29 years' experience as a
petroleum geoscientist.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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