Empyrean Energy PLC Drilling commences at Jade prospect (9273H)
April 11 2022 - 2:01AM
UK Regulatory
TIDMEME
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 1/2 "
hole will be drilled down to 1050 metres MD and the 13 5/8" casing
will be set and cemented in place. The rig will then drill ahead in
12 1/4 " hole to approximately 2140 metres MD before setting the 9
5/8" casing.
After setting the 9 5/8" casing, the rig will drill ahead in the
8 1/2 " 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
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