Share Name Share Symbol Market Type Share ISIN Share Description
Empyrean LSE:EME London Ordinary Share GB00B09G2351 ORD 0.2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.08p -7.98% 12.45p 12.30p 12.60p 14.12p 12.10p 14.12p 4,845,328 15:44:43
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.0 -10.5 -3.7 - 49.67

Empyrean Energy PLC Drill Pad Ready for Dempsey Natural Gas Well

17/07/2017 11:06am

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RNS Number : 2483L

Empyrean Energy PLC

17 July 2017

This announcement contains inside information

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

17 July 2017

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

Drill Pad Ready for 1+ Tcf Dempsey Natural Gas Well

Empyrean, the oil and gas development company with interests in China, Indonesia and the United States, notes the announcement released today by Sacgasco Limited ("Sacgasco") regarding the Dempsey Natural Gas Well (the "Well") in the Sacramento Basin, onshore California, in which Empyrean has a 30% interest. Sacgasco has advised that, further to the announcement of 10 July 2017, the construction of the drilling pad for the Well is now complete and spudding of the Well is on track for late July.

Tom Kelly, Empyrean CEO, commented: "We are delighted with Sacgasco's news that the drill pad is ready for the Dempsey well. This JV owned and operated infrastructure will generate almost immediate cash flow from any gas which is discovered at the location, and combined with low operating costs, makes commerciality threshold for natural gas production at Dempsey very low. This, together with our Indonesian and Chinese interests, presents a compelling investment opportunity for Empyrean and our multi-jurisdiction portfolio. I look forward to providing further updates on this asset in the near term."

To view the full Sacgasco announcement, please click here:


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 is planned to take core, run a full suite of modern logs and conduct a flow test commencing June 2017.

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 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.

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.

This information is provided by RNS

The company news service from the London Stock Exchange



(END) Dow Jones Newswires

July 17, 2017 06:06 ET (10:06 GMT)

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