Empyrean
Energy Plc / Index: AIM / Epic: EME / Sector: Oil &
Gas
Empyrean Energy
plc
Block 29/11 China
update
13 June 2024
Empyrean Energy plc ("Empyrean" or the "Company"), the oil
and gas development company with interests in China, Indonesia and
the United States, provides the following update on Block 29/11
offshore China.
As announced on 4 May 2022, in order
to proceed with the second phase of exploration on Block 29/11
Empyrean committed to drill the Topaz project by 12 June 2024. As
of that date, Empyrean has not commenced the drilling of the Topaz
prospect and therefore has not met the requirements to continue the
cooperation on Block 29/11 with China National Offshore Oil Company
("CNOOC").
During 2023, Empyrean engaged LAB
Energy Advisors (London) with respect to broadening the reach for
possible risk sharing alternatives and farm out opportunities for
the Topaz prospect. Despite strong interest in the technical merit
of the Topaz prospect, no farm out deal has been reached as of
today's date.
Empyrean has put forward a submission
to CNOOC for an extension on Block 29/11.
The Company will make a further
announcement should its request for an extension be
granted.
Empyrean's plan is to maximise the
value in its 8.5% interest in the Mako gas field discovery on the
Duyung permit in Indonesia. The sell down process being coordinated
by the operator of the Duyung permit through Jefferies
International Bank is ongoing.
A binding Gas Sales Agreement ("GSA")
is seen by Empyrean as being a likely requirement or precursor to
the completion of any sell down transaction. Heads of Agreement
("HOA") have been reached for both domestic gas into Indonesia,
subject to transportation pipelines being built, and for gas sales
for the majority of Mako gas into Singapore (and 100% if domestic
transportation pipelines are not built). Both of these HOAs are
anticipated to be converted to binding GSAs in the near
term.
Empyrean CEO, Tom Kelly, stated:
"Empyrean continues to enjoy a very professional and
cooperative working relationship with CNOOC on Block 29/11. We will
do everything within our control to continue this working
relationship. Empyrean acknowledges that negotiating GSA's
involving governments and government bodies are often protracted in
their negotiation timelines and these delays have impacted
Empyrean's ability to fund its objectives in China in a timely
fashion. In any case, we will continue to work towards maximising
the substantial value from our Mako discovery in Indonesia in order
to move forward with our plans to create value for shareholders. By
making the submission for an extension in China, we plan to have
options in addition to the existing projects in the Sacramento
Basin. We are also being proactive in identifying additional low
risk/high impact opportunities that will complement our portfolio
as we monetise Mako."
For further information please
contact the following:
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Empyrean Energy plc
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Tom Kelly
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Tel: +61 6146 5325
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Cavendish Capital Markets Limited (Nominated Advisor and
Broker)
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Neil McDonald
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Tel: +44 (0) 20 7297 8900
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Pearl Kellie
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