TIDMEME
RNS Number : 2356T
Empyrean Energy PLC
13 November 2019
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
13 November 2019
Empyrean Energy PLC ("Empyrean" or the "Company")
Duyung PSC, Operational Update - Tambak -1
Highlights
-- Top reservoir depth came in at circa 1,276 feet TVDSS as predicted
-- Very well-developed upper sandstone unit of approximately 17
feet with wireline logs confirming excellent porosity &
permeabilities
-- Tambak-1 encountered a much better developed intra-Muda sand package than expected:
Ø In addition to the upper sandstone unit, a thick lower
sandstone unit of almost 66 feet was found
Ø Overall gross thickness of 82 feet of intra-Muda sandstone,
(compared to a 23.9 feet reservoir sandstone seen in Mako
South-1)
-- Pressure data confirm Tambak-1 is in the same pressure system as Mako South-1 & Tambak-2
-- Gas samples recovered from the reservoir confirm gas composition as seen in Mako South-1
-- Gas-water contact found in the main upper sandstone unit, 5
feet below the gas-water contact at Mako South-1 and Tambak-2,
providing volumetric upside potential for the field
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 drilling campaign
in the Duyung PSC in the West Natuna basin, offshore Indonesia, in
which Empyrean holds an 8.5% interest.
Tambak-1, located approximately 4.5 km north of the Mako South-1
well, has been drilled to an intermediate depth of 1,683 feet true
vertical depth sub-sea ("TVDSS"). The well has intersected the
intra-Muda reservoir of the Mako field and a full suite of wireline
logs have been acquired together with a pressure survey and
extensive fluid and gas samples recovered. These data have
established the well as a successful appraisal of the Mako gas
field and confirm the large, areally extensive single tank model
for the field.
As previously reported, the Tambak-1 well is designed as both an
appraisal of the northeast flank of the Mako gas field as well as
an exploration test of the Tambak prospect. An independent review
by Gaffney Cline & Associates had previously 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 results of the successful
appraisal drilling in both Tambak-1 and -2 provide significant
volumetric upside potential for the field, representing a very
significant value addition.
As a next step, the well will be drilled to a total depth of
approximately 4,495 feet TVDSS in order to test the potential of
the deeper Tambak prospect. Tambak is estimated as having a
mid-case prospective resource potential of 250 Bcf and a geological
chance of success of 45%. The Tambak-1 well is planned to be
plugged and abandoned once operations are complete.
The gross cost of the two well programme is expected to be
approximately $17MM-19MM to the PSC partners on a fully tested
basis, including rig mobilisation and de-mobilisation, for which
Coro Energy Plc ("Coro") is funding US$10.5MM. Empyrean will fund
8.5% of the additional drilling campaign costs over and above the
Coro funding.
Tom Kelly, Empyrean CEO commented," The successful appraisal of
the Mako gas discovery (intra-Muda sands) to date has clearly added
significant confidence in the resource and has created value that
is normally only achieved through additional exploration. Any
subsequent success at the deeper Tambak exploration prospect will
add further value to an already successful drilling campaign".
The information contained in this announcement has been reviewed
by Empyrean's Executive Technical director, Gaz Bisht, who has over
30 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
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