Empyrean Energy Share Discussion Threads

[wcj] 04/12/2017 19:46

No, I think that we are in for a slow-and-steady period. No froth. With occasional surprises to keep us awake, like Indonesia and China.

[niceyman1] 04/12/2017 19:43

Will we get another update tonight?

[petercrosby] 04/12/2017 19:00

From 8th Sept RNS

-- Drilled through hard siltstone/shale section into a primary gas bearing sand
-- Drilling ahead below 2,760 m (9050 feet) to evaluate remaining conventional sandstone reservoir targets in next approximately 440 m (1,400 feet) of drilling

Empyrean CEO Tom Kelly commented, "After slow and steady drilling through some very hard rocks over the last few days, we are very encouraged to see the best looking gas shows from another sand in what we now believe to be part of the primary target zone in this well. We have not drilled out of this latest gas bearing sand yet, so it will be interesting to see how thick this zone is. We look forward to keeping investors appraised as we progress."

Total depth was announced 5 days later on 13th Sept at 2,970 m (9750 feet)

I think we are testing this thick zone which is one or two zones below the expected x zones

[craigc25] 04/12/2017 18:39

We look forward to providing an update on current testing shortly

[safiande] 04/12/2017 16:41

Stew,

Can´t be sure. They announced 10 zones by my reckoning during the drill compared to 7 zones pre spud. However GJ stated that they would no longer report on strata relative to their original diagram. Possibly a number of the deeper X zones are merged so we may have to wait some time for a definitive statement. Be prepared to apply some collective guesswork during the confidential phase.

Kev,

I believe that Alvares has slipped from the original 2017 planned spud to Spring 2018. Costs are not that great as it is a re-entry rather than a new well, so they might wish to hold that date especially if Tulainyo is positive.
Cash permitting they might have the opportunity to proceed with the start of the outstanding higher zone Dempsey testing during the 1st Qtr 2018?

[safiande] 04/12/2017 16:21

Tarz,
Congrats on your earlier good news from the family.
Looking very promising so far. The field level zones are in the bag & already declared as commercial. Enough to pay the well plus a bit more as I assume that the costs are increasing each day. Lowest zone is producing from thin sands & poor reservoir quality. Remainder is under wraps and / or yet to be tested. Regardless they re-confirmed today that planning for Alvares is progressing. Alvares is a real m/f. 2.4tcf & very deep relative to Dempsey. In the first instance they plan a side track re-entry of the 1982 discovery well by Hunter to assess the integrity of the well bore & see if they can get a decent flow to test.

[kevjames] 04/12/2017 16:05

Thanks Saf

My understanding is that further Dempsey testing using existing pads/offset wells will come after Alvares - or do you think they are planning that work to take place sooner?

[stewart4800] 04/12/2017 16:04

Safi,

Many thanks for the above comments. I am assuming they are not testing X4 at the moment and that the zone being tested is one not on the map but below X4, what's your view.

[safiande] 04/12/2017 16:00

Kev,
GC stated that they plan to produce from 2 zones from this well, Disregard the bottom most zone for the moment, which wasn´t even foreseen at spud & which wasn´t even announced during drilling. That leaves the current zone plus one more. As per GOC they plan to test / produce from the other deeper zones using existing pads / offset wells etc. Other wells plus the 3 AMI trend wells will probably come later when they have the cash at hand?

[kevjames] 04/12/2017 15:21

Saf

Just re-visted the GOC and listened to the bit about how they planned to deal with the current well. Clearly they what to get revenue asap - the question is what defines a commercial flow rate for this well? Given that they can not do further testing on the other zones while producing, I think that this is the difficult question they have to answer.
My guess is zone 2 is close to meeting that target but they need further data on both the flow (ie what is the decline rate) and the gas quality (given that zone 1 was good, my guess is zone 2 should be.)
Using my logic, it would imply that the bottom zone, although announced as sub-commercial, may well actually be producible in the future, but currently does not offer the potential to generate the daily revenue to make it worthwhile to stop further appraisal of the well. The idea of trying to generate revenue now to fund Alvares in the near future makes a lot of sense. If Alvares produces, that will give the additional funds needed to fully evaluate the Dempsey area at a later date. This is starting to make more sense now and I think I now understand the strategy. The question remains, what flow is needed from Dempsey to make them connect to the pipeline and effectively stop testing. Hopefully we will find out soon. AIMO.

[cmackay] 04/12/2017 15:13

Safiande, thank you for your input. I found it particularly helpful to revisit the presentation.

[safiande] 04/12/2017 14:43

Kev / Wcf

Re posts 13435 & 13448 resp

In his last GOC presentation I believe that GJ explained how they intend to combine maximization of cash flow with their plans to continue testing & ultimately drain the totality of the various zones. 14 mins in more or less related to existing resources etc. Of course plans will change all the time but looking very positive overall particularly for Alvares. Currently drilling Tulainyo ( non EME wi ) which is a shallow well & on trend to Alvares. So news before Chrimbo?
Ask Frank. He will know but talk about the Ashes first!

[starzerus] 04/12/2017 14:26

Interesting saf

[safiande] 04/12/2017 14:10

Esmerelda
4 Dec '17 - 07:18 13394

“Yes, very encouraging. They very quickly reported non-commercial success with the first zone.........”

--------------------------

Re above post 13394.

Sub comercial not non commercial. Big diffrence. Sub commercial means that in this case the zone is not worth producing from in isolation at this time. Furthermore this very lowest zone is getting better all the time as per today´s RNS with the potential to get better over time.

[michaelhfrancis] 04/12/2017 14:08

My reading of the rns is we are not in a position yet to confirm but indications are

this zone is going to turn out to be beyond our expectations

dyor

[michaelhfrancis] 04/12/2017 14:08

My reading of the rns is we are not in a position yet to confirm but indications are

this zone is going to turn out to be beyond our expectations

dyor

[judijudi] 04/12/2017 13:48

Excellent flow rates are required for one
Once we have this confirmation then we can look to move up
imho

[harrissen] 04/12/2017 13:21

Compare those two extracts from recent updates and the future looks good.


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

Dempsey Gas Well Update

14 November 2017

"The well's lowest zone, a thin sand with poor reservoir characteristics based on the wireline logs, has been perforated and has flowed clean, dry natural gas and no water. The gas has flowed at rates that are sub-commercial at current gas market prices. However, analysis of this zone, and its full potential, remain at an early stage. The tested zone has been isolated and preparations are underway for the next stage of testing which will target the next shallower zone of gas shows."

And then this:-


Empyrean Energy PLC
4 December

Dempsey Gas well update

"Since the last test update, the results of the gas quality from the first flow test of the lowermost zone in Dempsey 1-15 have confirmed clean gas of pipeline quality with a Higher Heating Value (HHV) better than the gas from the overlying field reservoirs in the Rancho Capay Gas Field."
....


The above update seems to have been largely overlooked by today's posters.

SGC now know the quality of the gas in the first perforation is top class clean gas of pipeline quality which can go straight in to the domestic gas pipelines and be sold at the top price. If all the perforations produce that quality and there is no reason why not EME will be banking profits almost immediately.

The pressure is high the product is top quality what more does the canny investor need to jump on board this gravy train?

[cmackay] 04/12/2017 13:09

Jerrys1, it may be available here:-

[jerrys1] 04/12/2017 12:33

But it does give very positive indications that there is good quality gas at higher than normal pressure in the bigger zones yet to be tested.
Does anyone know what the normal expected psi is in the Californian fields so we can asses this result against them?

[buffythebuffoon] 04/12/2017 12:24

No need for the ‘k’ Wcj. It’s mscf.

Good point though.

Buffy

[wcj] 04/12/2017 12:14

SGC have said that on finding commercial gas they will connect for cash flow. But the moment they do they prevent the testing of the more interesting strata, which are the big prize. My guess is that they are currently in a quandary - the find so far is only so-so, probably commercial but not mind-blowing; but are the mmscf in the bush more tempting than the kmscf in the hand?

[jerrys1] 04/12/2017 11:59

I think that the RNS contains only good news (not everything we wanted but really positive indicators for future RNS. When taken with earlier RNS I get to the following
1- Good Quality gas (tick)
2- High pressure gas flow (6000) materially higher that expected in California ( they use 5000 psi kit) Big tick
3-Porous sands covering a large area - tick
4- As the sands are porous, if it was only a pocket of gas at this pressure it would have dissipated over the rest of the sands to lower pressure zones in the past million or so years - tick
5-ALVARES continuing planning - as they are short of cash they would not be incurring a cent of money on Alvares unless they were over 70% confident that this was a good commercial zone.
As to testing other zones - it will come later with a new well or a re drill of one of the other wells

[malcolmmm] 04/12/2017 11:23

You never know but I reckon that there is a 60%/70% chance of finding a good supply of gas, worth the gamble imo

[hang ten] 04/12/2017 11:16

Kev James / Toon - my words exactly. Having Gas and needing funds is a nice problem to have I would have thought ! We have Gas and that's without testing the major zones ! Yes bring on Indonesia update and China Block 29/11 seismic results - Am I been far fetched in thinking 1billion + barrels identified? I think not ! Exciting times ahead.GLA HT