Empyrean Energy Share Discussion Threads

[blocker2] 06/5/2021 10:45

Nice, thanks

[judijudi] 06/5/2021 10:43

Laz,
I’ve never had a 170+ bagger

[judijudi] 06/5/2021 10:31

I could “write the book” with this company’s price movements
There was always going to be stale bulls getting out/reducing at the first opportunity

[lazarus2010] 06/5/2021 10:31

this certainly is one heck of a frustrating share(price)!!

As mentioned, I think we have a lot of traders who are anxious to take some small profit and are not interested in the big picture and the potential returns.

Bengal - it's a simple 1,2,3 drilling programme.

1. Drill a cheap well to see if oil yes/no. If no abandon and move on, if yes carry out certain number of limited tests.
2. Design well and drill to take core samples in order to measure porosity and permeability and also carry out a flow test to prove if the oil will flow and what sort of pressure is achieved and whether it might need down hole pumps etc. Analyse data.
3. Design and drill a well for production.

Personally I believe we will drill 1. 2. for jade and 1. for Topaz and then sell out. 1&2 for Jade will prove oil flow and reserves and value the OiG at $10'ish per barrel.

'1' at Topaz will prove oil (or not) and could be used to value OiG at $10/bbl if data mimic Jade.

Final well will never be drilled by EME as we will have sold out of the entire licence by then (my guess) unless something extraordinary happens and TK decides to become an oil producer (he could sell all/part of his stake and de-risk his stake and let the rest ride maybe with a backseat allowing CNOOC to run the show as they own 51% and may want to take a hands on approach. All 3 wells is probably a 5-10 year plan, but could create so much value for EME shareholders we could be looking at £10/share by then.

aimho dyor

[blocker2] 06/5/2021 10:29

Bengal, get that fiver ready to jump back in....

[blakieboy7] 06/5/2021 09:54

Isn't it funny that the resident tool has a lot to say on a down day

[hodge podge] 06/5/2021 09:54

NewFlash Stew900p
The market does not rate Gas Clouds,
or Well Design Apps,
save for jemjem or the hapless BlueStalkerMan et al
hence the uber predicted duuuump
Disuss

[stewart4990] 06/5/2021 09:43

I have no further details other than what is in the public domain, its my opinion based on the details available to all.

[bengal1] 06/5/2021 09:39

Yes, yesterday (no fill). I have read many broker notes in the past. I find this one a bit strange on not attempting a valuation for risk based success, or a current market value status that incorporates current market cap, assets risks and opportunities. I presume they are more in the know than any of us and have seemingly held back.

[hodge podge] 06/5/2021 09:37

Gaz Clouds first
Now
Drilling without FEED
Simply relying on a cheap 'whizz bang' well design App
For a DW shot
What could possibly go wrong?
Discuss

[stewart4990] 06/5/2021 09:36

Yes thats my understanding they always are see my post and link yesterday

[stewart4990] 06/5/2021 09:35

Bengal,I cannot see why you thought I was coming across that way but so be it, it was not my intention but merely to explain my thoughts. I may have it wrong but thats my opinion.Also I thought you put in a buy order did u or was that simply incorrect perhaps you lowered you price to 5p !!

[bengal1] 06/5/2021 09:33

The other thing I don't understand is the comment "Following
development approval, subsequent wells will be designed for production". Is the first Jade well just for appraisal?

[abergele] 06/5/2021 09:29

There's been the rush of gamblers,not investors in and out here this last week,but those that know me,know my maxim,"only invest what you do not need in the coming months,even years.
So to many Lth's a 7p level was a comfort on that road to 10p and more,
I was in profit,between my 2 accounts, so quite happy to sit it out, with money not required ,as were many others no doubt.... "BUT" then there's the rush in and out brigade,they that can't see the red on their a/c,the gamblers not investors who can't sit and see the half penny rise become a penny or two by being patient.
Let them be gone,and perhaps we can creep slowly higher with newbies who see value,but can wait...gl. Lth's..

[bengal1] 06/5/2021 09:27

No need to be rude Stewart. Thank-you for your help in understanding. I will wait to see how this gets fully funded. The market speaks for itself here. The other thing I don't understand is the comment "Following
development approval, subsequent wells will be designed for production". Is the first Jade well just for appraisal?

[blocker2] 06/5/2021 09:20

Time to get out then Bengal. Phew just in time

[bengal1] 06/5/2021 09:16

I just don't understand our Broker valuation for Jade. If that is the case then I can see a big pull back of our SP, as opposed to meteoric rise that many say will happen. The other thing I don't understand is the comment "Following
development approval, subsequent wells will be designed for production". Is the first Jade well just for appraisal?

[starzerus] 06/5/2021 09:08

Sorry i cany post the tables.



Empyrean Energy Plc

Jade Well Planning

Empyrean has announced the completion of the well design and
engineering work by AGR for the potentially transformational Jade
prospect exploration well in Block 29/11, offshore China. The four-string
design provides for a more robust well design with reduced exposure to
potential unplanned events and associated costs. Jade will be the first
well to be drilled in Block 29/11, targeting 225mmbbls (mean) of oil in
place adjacent to a billion barrel oilfield. As previously stated, (and
excluding the rest of Empyrean’s potentially transformational portfolio),
we value the Jade prospect at 9.7p, a c59% premium to the current share
price.

Well Planning – Empyrean has awarded a contract to AGR to assist with the planning
and engineering of the Jade exploration well in Block 29/11, offshore China to ensure
a safe and secure drilling campaign.

The AGR Team has completed a comprehensive review of offset wells in the vicinity
of the Jade prospect. Two well designs were identified, a three-string casing design
and a four-string casing design, with AGR recommending a four-string design as it
provides a more robust well design with reduced exposure to potential unplanned
events and associated costs.

Whilst the cost of using a four-string design is greater than a three string design, the
benefits heavily outweigh any potential cost savings. A four-string design is much
safer, reducing the risk of problems in the surface hole, down hole and bottom hole
sections, which if encountered could lead to significant time and cost overruns.

Drilling Scenario – Similar to nearly all exploration wells, the Jade exploration well
will drill and test the Jade prospect before being subsequently plugged and
abandoned. This is standard practice, and if successful will give shareholders an idea
of the hydrocarbon quality, reservoir thickness (both gross and net), reservoir depth
and connected volumes. Following a successful test, a subsequent appraisal well will
be drilled to determine the extent of the reservoir and core will be taken to assist
with development planning. The core will provide Empyrean will the most accurate
insight into the reservoir rock characteristics, including porosity, permeability, fluid
saturation and grain density. All of these measurements will help Empyrean better
understand the conditions of the well and its potential productivity. Following
development approval, subsequent wells will be designed for production.

A Casing String is a length of pipe configured to suit a specific wellbore. The sections of
pipe are connected and lowered into a wellbore then cemented in place. Long casing
strings may require higher strength materials on the upper portion of the string to
withstand the string load while lower portions of the string may be assembled with casing
of a greater wall thickness to withstand the greater pressures at depth. Casing is run to
protect/isolate formations adjacent to the wellbore.



Next Steps – Utilising the completed well design and engineering review by AGR, the next
step for Empyrean is to identify and negotiate a suitable rig for the drilling of the Jade
prospect.
After a tumultuous year for the E&P sector in 2020, companies have reacted by slashing
capital expenditures in 2021. The result has seen day rates for drilling rigs plummeting to
two year lows, with recent jackup day rates in SE Asia

Following the 12-month extension to the first phase of the exploration period on Block
29/11, Empyrean has until June 2022 to drill the high impact Jade exploration well offshore
China. Weather windows dictate that the well is likely to be drilled between November 2021
and May 2022, with Empyrean looking to drill the Jade well at the earliest possible
opportunity.

Financing Jade – Unlike many of its exploration focussed peers, Empyrean has a number of
financing options when it comes to funding its Jade well including debt/equity, a farm-out,
an asset sale or a combination of all three.

One potential funding route involves the farm-out of part of Empyrean’s 100% working
interest in Block 29/11 in exchange for a carry/partial carry, with Empyrean previously
confirming that it is in discussions with several parties interested in participating in the
upcoming drilling programme.

Jade
The Jade prospect is a 4-way dip closed structure, located updip from several CNOOC oil
discoveries, including the nearby LH23-1-1d discovery well. The prospect itself is interpreted as
a carbonate build-up encased in marine shale.

A comprehensive oil migration study, completed in June 2018 and supported by geoscientists
from CNOOC interpreted that the Jade prospect was potentially filled from at least two different
pathways.

The study validated the interpreted oil migration pathways from known oil sources of the Enping
Formation within the Baiyun Sag East kitchen (BSE) into several oil discoveries made by CNOOC
to the immediate West and South of Block 29/11, and thus providing strong evidence of a prolific
petroleum system in the area. At the same time, the study interprets effective migration
pathways from BSE towards the northern flank of the Baiyun uplift, where the Jade prospect is
located.

As part of the study, the analysis of 28km2 of 3D seismic data that was acquired outside Block
29/11 over the 2013 CNOOC LH 23-1d-1 oil discovery has helped confirm the potential “fill-and-spill” pathways to the Jade structure from the LH 23-1d-1 oil discovery, significantly improving
Empyrean’s geological understanding of the basin. Further analysis of the 3D seismic data has
also helped map a new sub-basin called Baiyun Sag North (BSN), located between the Jade and
Topaz prospects. The oil migration study confirmed an effective migration pathway from BSN
into the Jade and Topaz prospects.

A Gaffney, Cline & Associates (GCA) STOIIP audit in 2018 estimated that the Jade prospect
contained mean oil in place of 225mmbbls, with a P10 upside case of 395mmbbls and a 32%
geological chance of success.

P90 - 93 P50 - 187 P10-395 MEAN - 225 GCoS 32%



ubsequent to the GCA report, in May 2019, Empyrean announced that comprehensive analysis
of the 3D seismic data shot in 2017 confirmed the presence of well-defined gas clouds above
the Jade prospect. Further analysis of 3D seismic data over four discoveries and three dry wells
immediately west of Block 29/11 revealed the presence of gas clouds in the overburden over all
four discoveries, whilst confirming that no gas clouds were present over the three dry wells.
Similar analysis of two dry wells drilled by a previous operator of Block 29/11 also confirmed
that no gas clouds were observed in the overburden.

Subsequent to the gas cloud study, post stack seismic inversion work confirmed the potential
for a world-class carbonate reservoir at the Jade prospect. Analysis of the seismic inversion data
confirmed that Jade had the potential for a world-class reservoir, with porosities between 20-
30% and 1 Darcy permeabilities.

Both the gas cloud and seismic inversion studies were completed after GCA had assigned a 32%
GCoS to the Jade prospect. Accordingly, Empyrean has updated its internal assessment of GCoS
for the Jade prospect and upgraded the GCoS to 41%.

[blakieboy7] 06/5/2021 08:40

Bengal I struggle with the fact that you want the price of Eme to increase based on your negative stance

[bengal1] 06/5/2021 08:35

How can Jade only be worth 9.7p... a couple pence more than this week's high. Not worth investing here for the risk/reward if that is all the broker reckons.

[jemjem] 06/5/2021 08:31

"After a tumultuous year for the E&P sector in 2020, companies have reacted by slashing capital expenditures in 2021. The result has seen day rates for drilling rigs plummeting to two year lows, with recent jackup day rates in SE Asia less than US$75k/day

"Jade will be the first well to be drilled in Block 29/11, targeting 225mmbbls (mean) of oil in place adjacent to a billion barrel oilfield. As previously stated, (and
excluding the rest of Empyrean’s potentially transformational portfolio),
we value the Jade prospect at 9.7p, a c59% premium to the current share
price."

A couple of snippets.

[bengal1] 06/5/2021 08:29

Back down to 5p then.

[bluehooperman] 06/5/2021 08:24

Looks like the swarm of Locusts ( day traders ) have come & gone. Looking at the chart we are getting higher highs & higher lows over the past yearHopefully we can have a steady rise with new Investors & Lth's buying over the coming monthsJust my thoughts :-)