REG - Empyrean Energy PLC - Drilling commences at Jade prospect

Empyrean EnergyAnnouncement

11/04/2022 07:00

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RNS Number : 9273H  Empyrean Energy PLC  11 April 2022

This announcement contains inside information

 

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

 

Empyrean Energy plc

 

Block 29/11, China - Drilling commences at Jade prospect

 

11 April 2022

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development
company with interests in China, Indonesia and the United States, is pleased
to provide the following update on drilling the Jade prospect at its 100%
owned Block 29/11 permit, offshore China:

 

HIGHLIGHTS

 

·      LH 17-2-1 well spudded on Jade prospect at 19:30 on 10 April 2022

·      36" surface hole was drilled down to 588 metres Measured Depth
("MD")

·      Current operations are installation of the 30" surface conductor

 

 

Empyrean is the operator of Block 29/11 in China and has 100% working interest
during the exploration phase. In the event of a commercial discovery, its
partner, China National Offshore Oil Company ("CNOOC"), may assume a 51%
participating interest in the development and production phase.

 

Empyrean is pleased to announce that drilling has commenced at the LH 17-2-1
well on Jade prospect at 19:30 on 10 April 2022.

 

Progress

 

The NH9 Semisubmersible drilling rig has commenced operations at LH 17-2-1
with the drilling of the 36" surface hole down to 588 metres Measured Depth
("MD"), and current operations are installation of the 30" surface conductor.

 

Forward plan

 

Following the setting of the surface conductor, the 17 ½" hole will be
drilled down to 1050 metres MD and the 13 ⅝" casing will be set and cemented
in place. The rig will then drill ahead in 12 ¼" hole to approximately 2140
metres MD before setting the 9 ⅝" casing.

 

After setting the 9 ⅝" casing, the rig will drill ahead in the 8 ½" hole
section through to the expected Total Depth ("TD") of the well at 2860 metres
MD.

 

During the drilling of the Jade well, we are conducting Logging While Drilling
("LWD") operations and should we encounter hydrocarbons in the main target
zone we will run additional Combo Logs to confirm any oil pay zones. If an oil
pay zone is confirmed then the plan is to carry out flow testing operations on
the oil pay zones.

Well Objective

The 2021 drilling campaign is targeting a world class conventional oil target
in the Jade Prospect, to which Gaffney Cline & Associates ("GCA") assigned
a Geological Chance of Success ("GCoS") of 32%. Subsequent to 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. 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.

Empyrean's excellent quality 3D seismic indicates that there is a classic
"fill to spill" geological setup in the basin, and a robust regional seal,
that provides the Jade and Topaz Prospects with a very real possibility of
being filled in a similar fashion to nearby discoveries. The Jade and Topaz
prospects both have gas clouds, similar to 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,
which also contains 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 buildup reservoir
quality with excellent porosity and permeability. Any oil discovered is
expected to be light oil in the 38-41 API range, similar to nearby
discoveries. These attributes combined with the potential for exceptional
natural reservoir drive supports the potential for excellent recovery rates.

The objective of drilling the Jade well is to test for hydrocarbons down to
the TD of the well at 2860 metres MD.

The information contained in this announcement has been reviewed by Empyrean's
Executive Technical director, Gaz Bisht, who has over 31 years' experience as
a hydrocarbon geologist and geoscientist.

Empyrean CEO, Tom Kelly, stated:

"Empyrean is delighted to inform shareholders that following successful
anchoring operations at the Jade location we have spudded the Jade well over
the weekend and drilled the first section of hole. The Empyrean, COSL and
CNOOC EnerTech teams are working very well together to drill the well safely
and achieve the objective."

 

For further information please contact the following:

 

   Empyrean Energy plc
   Tom Kelly                                              Tel: +61 6146 5325

   Cenkos Securities plc (Nominated Advisor and Broker)
   Neil McDonald                                          Tel: +44 (0) 131 220 9771
   Pete Lynch                                             Tel: +44 (0) 131 220 9772

 

  First Equity Limited (Joint Broker)
   Jason Robertson                       Tel: +44 (0) 20 7330 1883

 

 

 

 

   First Equity Limited (Joint Broker)
   Jason Robertson                       Tel: +44 (0) 20 7330 1883

 

 

 

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