TIDMEME
RNS Number : 4113J
Empyrean Energy PLC
19 August 2019
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
19 August 2019
Empyrean Energy PLC ("Empyrean" or the "Company")
Duyung PSC, Operational Update
Highlights:
-- Planning for two well programme complete and approved by
Duyung Production Sharing Contract ("PSC") partners and the
Indonesian authorities
-- The programme will:
Ø test the Tambak exploration prospect and appraise the central
area of the Mako gas field - Tambak-1 (mid-case resource potential
of circa 250 Bcf); and
Ø perform a large step out (over 13.5 km) to appraise the
southern area of the Mako gas field - Tambak-2 (gross 2C resources
of 276 Bcf (48.78 MMboe) of recoverable dry gas in the Mako field
with gross 3C resources of 392 Bcf (69.3 MMboe)
-- Asian Endeavour-1 jack up rig contracted for the drilling campaign
-- Initial well spud anticipated in October 2019
-- Continuous drilling & testing programme is planned to last through to December 2019
-- Empyrean's partner, Coro Energy Plc, funding the first
US$10.5MM of the drilling campaign costs
Empyrean Energy Plc, the oil and gas development company with
interests in China, Indonesia and the United States, is pleased to
provide an operational update in relation to the upcoming drilling
campaign in the Duyung PSC in the West Natuna basin, offshore
Indonesia, in which Empyrean holds an 8.5% interest.
The campaign will comprise of two wells, an exploration well
designed to test the Tambak prospect beneath the central area of
the Mako gas field, and an appraisal well designed to primarily
appraise the intra-Muda sandstone reservoir in the southern area of
the Mako field, as well as gather stratigraphic information from
the Lower Gabus interval. The Indonesian authorities have requested
the naming convention Tambak-1 for the exploration & appraisal
well and Tambak-2 for the appraisal well. The Asian Endeavour-1
jack up rig, owned by China Oilfield Services Limited ("COSL"), has
been contracted for the drilling campaign.
Tambak-1
The Tambak-1 well will appraise the central area of the Mako
field and will evaluate the intra-Muda sandstone reservoir of the
Mako field, which is prognosed at a depth of approximately 385
metres below sea level. A full suite of wireline logs will be run
before the well is deepened to test the Lower Gabus Tambak prospect
beneath the base Muda unconformity. The well is expected to be
drilled to a total depth ("TD") of approximately 1,370 metres
sub-sea.
The Tambak prospect is a three-way dip closed inverted
anticlinal structure, of approximately 15 square km in areal size.
The reservoir is prognosed to be early Oligocene-age fluvial &
lacustrine sandstones of the Lower Gabus formation, and to be
charged by the underlying syn-rift lacustrine source rocks of the
Benua shale. Numerous nearby analogue fields found in similar
inversion structures are seen in the West Natuna basin, including
Kerisi, Anoa Forel and KF.
Amplitude versus Offset ("AVO") modelling work across the Tambak
prospect supports the potential for gas-charged reservoir
sandstones being present in the structure, with a strong
correlation between the modelled seismic response and the actual
seismic data being seen. This helps de-risk the prospect, which the
partners believe has a 45% chance of technical success and a
mid-case resource potential of circa 250 Bcf.
Including an extensive testing programme in the event of
success, the drilling time from spud to completion is expected to
be around 33 days. The well will be plugged & abandoned at the
end of the drilling programme.
Tambak-2
Tambak-2 is designed to evaluate the reservoir properties and
deliverability of the intra-Muda sandstones in the southern area of
the Mako field. The intra-Muda sandstone reservoir is prognosed to
be encountered at a depth of c. 380 metres below sea level. A full
suite of logging and coring is planned across the Mako reservoir
and the well is expected to TD at approximately 595 metres below
sea level. The expected total time to drill, log, core &
evaluate the well is approximately 33 days.
The well will be the most southerly test of the Mako field and
represents a significant step out from the Mako South-1 well (over
13.5 km to the northeast). An independent review by Gaffney Cline
& Associates ascribed gross 2C resources of 276 Bcf (48.78
MMboe) of recoverable dry gas in the Mako field with gross 3C
resources of 392 Bcf (69.3 MMboe) representing additional field
upside. The well has the potential to move 3C resources to the 2C
category and likewise 2C resources to the 1C category, which will
further improve the commercial attractions of the field itself, as
well as help the gas marketing effort.
Costs & Timing
The gross cost of the programme is expected to be approximately
US$17MM-19MM to the PSC partners on a fully tested basis, including
rig mobilisation and de-mobilisation, for which London listed Coro
Energy Plc ("Coro") is funding US$10.5MM. Empyrean will fund 8.5%
of the drilling campaign costs over and above the Coro funding. The
upside range of costs reflects the additional costs involved in
testing the Tambak prospect should logging provide encouragement
for testing. The Asian Endeavour-1 jack up rig will shortly
mobilise for Singapore from the COSL yard in Shanghai. On the
current schedule, the rig is expected to mobilise from Singapore to
the first location in late September 2019.
Empyrean CEO Tom Kelly commented, "The upcoming drilling
campaign at the Duyung PSC in Indonesia promises to be very
exciting and somewhat unique in that we are combining a lower risk
appraisal component with a high impact exploration prospect. In our
view, the main aim of the drilling is to appraise the Mako gas
discovery and convert the current 3C resources into 2C resources.
This alone would increase the value significantly at Mako. Any new
discovery at Tambak would be an absolute bonus. We look forward to
providing updates as this exciting drilling campaign swings into
action shortly."
Further announcements will be made in due course, as
appropriate.
The information contained in this announcement has been reviewed
by Empyrean's Executive Technical director, Gaz Bisht, who has over
29 years' experience as a hydrocarbon geologist and
geoscientist.
**ENDS**
For further information:
Empyrean Energy plc
Tom Kelly Tel: +61 8 9380 9920
Cenkos Securities plc
Neil McDonald Tel: +44 (0) 131 220 9771
Pete Lynch Tel: +44 (0) 131 220 9772
St Brides Partners Ltd
Priit Piip Tel: +44 (0) 20 7236 1177
Frank Buhagiar Tel: +44 (0) 20 7236 1177
The Mako Gas Field, Duyung PSC, Offshore Indonesia
The Mako gas field is an extremely large, shallow structural
closure, with an area extent of over 350 square km. The reservoir
is a Pliocene-age sandstone, with a gas-water contact at
approximately 391m true vertical depth sub-sea. The field has
excellent seismic definition with direct hydrocarbon indicators
being very evident.
Having been drilled but not tested by prior operators of the
acreage, the commercial viability of the Mako gas field was
demonstrated by the Mako South-1 well drilled by Empyrean and its
partner and operator, Conrad Petroleum Limited in 2017. The well
was drilled to core and test the Mako reservoir, flowing up to 10.8
MMscf/d of dry gas on test. Overall four wells have penetrated the
reservoir section, and while further appraisal is planned given the
huge areal extent of the field, the reservoir distribution is
reasonably well understood.
The Mako field is located in the prolific West Natuna basin,
approximately 16 km from the WNTS pipeline system which delivers
gas from Indonesia to Singapore. A plan of development has recently
been approved by Indonesian authorities and initial gas marketing
discussions have commenced, with a gas buyer in Singapore for the
Mako gas. An independent report on the field's potential was
recently carried out by Gaffney Cline & Associates, giving a 2C
recoverable resource assessment of 276 Bcf and 392 Bcf of 3C
recoverable resources.
Near Field Exploration Potential, To Be Tested in 2019
A series of prospects both beneath and above the Mako field have
been mapped. Of particular note is the Tambak (formerly 'Mako
Deep') prospect, a Lower Gabus structure that sits beneath the
northern end of the Mako field. The target interval within Tambak
exhibits seismic amplitude brightening, conformable with structural
closure. The prospect has a prospective resource range of 200 to
300 Bcf with a mid-case 250 Bcf and a CoS of 45%.
At the southern end of the field, over the structure's crest,
sits the Mako Shallow prospect. This again shows a very strong
direct hydrocarbon indicators on seismic, conformable with closure
in shallow Muda sandstones. The Shallow Muda prospect has potential
to add a further 100 Bcf of recoverable resources and a very high
CoS of 75%.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDEAFPPFFENEAF
(END) Dow Jones Newswires
August 19, 2019 02:00 ET (06:00 GMT)
Grafico Azioni Empyrean Energy (LSE:EME)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Empyrean Energy (LSE:EME)
Storico
Da Apr 2023 a Apr 2024
