Empyrean Energy Share Discussion Threads

[currypasty] 13/4/2022 08:21

It would be nice to have that last loan note holder conversion RNS... they must have forward sold them all by now

[buzzzzzzzz] 13/4/2022 08:17

Curry

Just makes me wonder whether the depth is from sea level or sea bed?

Whichever one it's very good progress.

[currypasty] 13/4/2022 08:07

Following the setting of the 13-3/8" casing, the 12 -1/4" hole will be drilled down to 2140 metres

After setting the 9 5/8" casing, the rig will drill ahead in the 8 1/2 " hole section through to Total Depth at 2860 metres MD.



Its a long way down

[judijudi] 13/4/2022 08:06

I wonder at what depth the gas cloud should be?

[buzzzzzzzz] 13/4/2022 08:05

looks like they are drilling through butter!!!!!!!!

Obviously the deeper you go the slower it gets but they are a third of the way down already.

[judijudi] 13/4/2022 08:02

Crikey there not hanging around are they

[sue999] 13/4/2022 08:01

Hello. Are we expected to see any sign of oil at this 1056m depth?

[chris0805] 13/4/2022 07:57

Looking good so far. !!

[mostro] 13/4/2022 07:53

Holy Toledo, these guys sure drill fast!!

[solarfire73] 13/4/2022 07:51

Yes, nice RNS, all on schedule.

[jemjem] 13/4/2022 07:50

So far, so good :-))

[10owen] 13/4/2022 07:47

Good to see drilling is on schedule.Gla.

[blakieboy7] 13/4/2022 06:57

Another one for the filter!!

[buywell3] 13/4/2022 06:09

6.5p retest anyone ?

[noobiedoobie] 13/4/2022 05:01

Topped up yesterday

[pro_s2009] 13/4/2022 01:39

Empyrean Energy Plc

Drill Prospect - Overview

🐝Small Company Champion 📈

By Elric Langton | 12 April 2022

I have a financial interest in Empyrean Energy.

Empyrean Energy plc (AIM: EME), the oil and gas development company with interests in China, Indonesia and the USA, has announced the drill rig NH 9 has commenced drilling operations at LH 17-2-1 well on Jade Prospect at its 100% owned Block 29/11 permit, offshore China.

This news should prove to be an exciting period for the Company and investors as the Empyrean team has been working with a laser focus on this permit for the past five years. With the commencement of drilling operations, I expect more news within days because the drilling campaign is relatively short.

The news of spudding of the well and setting of the 36” conductor will be followed by a set of two further casings before the well is drilled to the total depth of 2860m. The drilling campaign period is expected to last c26 days. This drilling operation period has significant potential for news – which we hope will include potential gas kicks around the “gas cloud” zone and potential strong oil shows in the primary reservoir formation as the good drills to target depth.

If news breaks that the well has hit hydrocarbons based on the logging while drilling (LWD) data in the main reservoir, we are looking at a significant rerate in the share price.

In this scenario, operations will move to a “success-case” outcome that includes the acquisition of comprehensive log suites data that will further confirm the oil column height, the porosity of the reservoir etc. It will be followed by formation pressure, downhole fluid analysis, fluid sampling, sidewall coring etc.

Duster or commercial find, the well will be closed off because it is an exploration well, not a production well.

The Jade Prospect is located at the Pearl River Mouth Basin in the South China Sea. Empyrean has partnered with a significant resource player, none other than state-owned China National Offshore Oil Corporation (CNOOC), with 51% participating interest in the development and production phase. Empyrean’s man on site is Executive Director Gaz Bisht; he has a long and productive relationship with CNOOC, a relationship that sets Empyrean apart from its peers, which bodes well should Jade prove a commercial prospect.

CEO Tom Kelly has this to say about Gaz, which is worth repeating.

“Gaz was contracted to write a report for Roc Oil Company Pty Limited (ROC), one of Australia's leading independent upstream oil and gas companies with a presence in China, following a partially unsuccessful drilling campaign that would justify Roc pulling out of a final exploration well. It was expected that Gaz would simply lean on the poor results to date and then write a “yes man” report advising Roc to pull out of the final obligation well. A “no brainer”, it would seem, given the odds of discovery. However, Gaz did his homework and went against the odds. Instead of recommending Roc pull out of the well, given the previous failures, he did the opposite. He advised the board that the remaining exploration well was the one they should have drilled first!! He showed them why. To their credit, they listened. That discovery is still in production today. And Gaz is significantly credited with this achievement… there is no man I trust more, technically, than Mr Gajendra Bisht.”

Gaz is a man of integrity with the skillset required to take Empyrean through the current very exciting stage of business. To get to this stage, Empyrean has done the hard yards and drawn on all of Gaz's experience and utilised the best technology that modern hydrocarbon exploration offers. Empyrean’s Jade and Topaz assets share important similarities with the recent CNOOC discoveries immediately west and close by to Jade and Topaz, which provide greater encouragement than Gaffney Cline & Associates (GCA) assigned Geological Chance of Success (GCoS) of 32%. After this independent assessment, the Company completed a gas cloud study and post-stack seismic inversion study that it believes further mitigates risk and increases the GCoS to 41%.


The Jade Prospect has a GCA audited mean in place potential of 225 MMbbl and a P10 in place upside of 395 MMbbl. In addition, four recent nearby discoveries by CNOOC immediately to the West of the Jade Prospect are filled to their P10 potential or better. All four CNOOC discoveries have gas clouds showing in the overburden on seismic.


Steve Larratt, who is something of an oil expert, has produced several videos for the benefit of lay investors who may be unfamiliar with O&G geology and terminology.

Empyrean's excellent quality 3D seismic indicates a classic "fill to spill" geological setup in the basin, and a robust regional seal, that provides the Jade and Topaz prospects with a genuine possibility of being filled similarly to nearby discoveries. The Jade and Topaz prospects both have gas clouds, like nearby discoveries, in the overburden on 3D seismic. Dry wells nearby do not have gas clouds. The Jade Prospect is the first of the three identified prospects within Block 29/11, containing the Topaz and Pearl prospects. The combined audited mean in place potential of all three prospects is 884 MMbbl and a P10 in place upside of 1,588 MMbbl. The post-stack seismic inversion study showed Jade and Topaz both have the potential for excellent carbonate build-up reservoir quality with excellent porosity and permeability. Like nearby discoveries, any oil discovered is expected to be light oil in the 38-41 API range. These attributes, combined with the potential for exceptional natural reservoir drive, support the potential for excellent recovery rates.

The Jade Prospect will cost US$12.3 million to drill, significantly cheaper than the expected cost of $18.5million. Empyrean recently raised the amount required to drill, and they have approximately 62 million warrants exercisable at 12.5p or less, which potentially raises around US$9m should they be exercised. Testing costs are estimated at US$7.5m, so the exercise of the warrants can potentially negate the need for a further raise for testing. Gaffney Cline has assessed the Jade prospect to have an Oil in Place (STOIIP) potential of 225 MMbbl (mean) with an upside case of 395 MMbbl (P10).

In a note to its clients on Friday, 8 March, First Equity argues, “Drilling success at Jade would focus investor attention on the potential of the Topaz prospect, which has a P50# estimate of 434m barrels, which therefore adds even more potential value to Empyrean Energy and strengthens the investment case (+135p to +278p per share on a P50 or P10 discovery basis respectively).”

Cenkos explains, “any exploration success at Jade would see its risked valuation of the Jade prospect increase from 9.9p to an estimated c41.8p, a c4.2x increase. Success at Jade would also significantly de-risk both the adjacent Topaz and Pearl prospects. Unrisked (the point at which there is 0% risk).”

[hang ten] 12/4/2022 19:09

Re EME .. it sure looks like if we hit the target at Jade there will be one massive uplift for EME and many will want to be on board for the next two drills - if we are not taken out by then. I think Steve mentioned a potential £5 takeover on success at Jade alone. Exciting stuff !

[hang ten] 12/4/2022 19:06

Horrendous stuff Laz ! And if fair wages and proper industry standards were applied would it deem that whole sector non viable. Its an ugly proposition imo

[10owen] 12/4/2022 18:53

Thanks JJ.

[lazarus2010] 12/4/2022 18:05

Markets closed so o/t...blood batteries...

[blueblood] 12/4/2022 17:57

Thanks all good to see further potential being highlighted widely

[judijudi] 12/4/2022 17:39

You’re welcome Guys

[crosseyed] 12/4/2022 17:28

Thanks to JJ