TIDMEME
RNS Number : 3433U
Empyrean Energy PLC
22 November 2019
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
22 November 2019
Empyrean Energy PLC ("Empyrean" or the "Company")
Duyung PSC, Operational Update - Tambak -1
Highlights
-- A cased hole DST conducted between 1,276 and 1,282 feet TVDSS
resulted in a maximum flow rate of 11.4 MMscf/d from only 6 feet of
Intra Muda sand perforations, further confirming the excellent
deliverability of the Mako reservoir
-- The cased hole technique and excellent flow rate in Tambak-1
provides a valuable data point and an alternate completion
technique to the open hole completion used on the Mako South -1
well
-- Well-developed upper sandstone unit of 56 feet of high
permeability and good porosity sandstone encountered, notably
thicker than seen elsewhere in the Mako field
-- Well-defined gas-water contact at 1,289 feet TVDSS, has now
been logged 5 feet below the previously estimated (from pressure
data) gas-water contact at Mako South-1 and Tambak-2
-- Reservoir pressure data confirms Mako field to be a simple, single gas tank system
-- Gas water contact, pressures, porosity, permeability, flow rate and thicker sands will have a significantly positive impact on tank size, deliverability and therefore value
-- The Lower Gabus reservoirs in the underlying Tambak prospect
were found to have low gas saturations and poor reservoir
characteristics
Summary
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.
The Tambak-1 well, located approximately 4.5 km north of the
Mako South-1 well, was designed to both appraise the Mako gas field
and test the underlying Tambak exploration prospect.
Following a drill stem test ("DST") at Tambak-1, which flowed
dry gas at 11.4 MMscf/d on a 181/64 inch (2.8 inch) choke with well
head tubing pressure being maintained at 225psi, operations have
now concluded, resulting in the highly successful appraisal of the
Mako gas field. The Tambak-1 well encountered 82 feet of total
intra-Muda reservoir sandstones with 56 feet of better quality
upper sandstone, confirmed a common gas-water contact across the
field and culminated in the DST demonstrating the potential
deliverability of the Mako reservoir.
The well was deepened beneath the Mako field to a depth of 5,062
feet true vertical depth sub-sea ("TVDSS") to test the Tambak
exploration prospect. The well encountered multiple sandstone
intervals in the Lower Gabus section as predicted, with
corresponding hydrocarbon shows seen while drilling. However,
petrophysical interpretation of wireline log data has concluded
that these sandstones have low gas saturations and attempts to
collect fluid samples and pressure data demonstrate low
permeabilities.
The well is currently being plugged and abandoned, as originally
planned, prior to the Asian Endeavour 1 rig being demobilised.
Overall, the drilling campaign has been completed within the
expected time frame and within budget.
There is more comprehensive well data that still needs to be
retrieved from down hole tools and gauges. All of the data will
then be analysed and updated into static and dynamic models for the
field.
Tom Kelly, Empyrean CEO commented, "The appraisal drilling at
Mako has been a tremendous success. Better quality reservoir, with
thicker sands and a gas water contact that is now confirmed from
logging to provide a 5 feet uplift in aerial tank size to the Mako
discovery. We have also successfully trialled a behind casing DST
over a small 6 feet interval that provided an excellent flow rate
and demonstrates deliverability of gas from Mako at a different
location to the successful Mako South-1 discovery well using behind
casing perforations versus the open hole test of Mako South-1.
These developments will substantially add to the attractiveness of
the Mako field for development. Whilst the deeper exploration
result is disappointing, the potential for a very significant
uplift in overall tank size and ultimately potential recoverable
resources has been demonstrated at Mako. We look forward to
updating shareholders on both internal resource work and external
resource estimates as they come to hand."
Mako Gas Field Appraisal Campaign
As previously announced, Tambak-2, the initial well of the two
well campaign was a 13.5 km step out from the original Mako South-1
discovery well. Tambak-2 encountered 33 feet of high-quality
gas-bearing reservoir intra-Muda sandstones, representing a better
developed reservoir than seen in the discovery well. It also
confirmed a common gas-water contact and pressure system across the
Mako structure, which covers an area of approximately 350 square
km.
The Tambak-1 well, located on the north-east flank of the Mako
structure, was designed to appraise the field limits. The well
encountered 82 feet of excellent quality intra-Muda sandstones,
exhibiting the gas-water contact in the reservoir section, with 16
feet of sandstones in the gas leg. The gas-water contact was
consistent with other wells on the Mako field structure and
pressure data again confirming a common pressure system across the
field.
A cased hole DST was conducted across a 6 feet interval of
intra-Muda reservoir in the Tambak-1 well. A section between 1,276
and 1,282 feet TVDSS was perforated and flowed dry gas at 11.4
MMscf/d on a 181/64 inch (2.8 inch) choke with well head tubing
pressure being maintained at 225psi. Onsite gas composition
analysis confirms high quality, dry, sweet natural gas.
An independent review by Gaffney Cline & Associates
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.
Estimates are that the drilling campaign should result in a
significant increase in gross resources in the Mako gas field.
Tambak Exploration Results
The Tambak-1 well was drilled to a total depth of 5,062 feet,
encountering several sand bodies in the Lower Gabus section, with
associated hydrocarbon shows while drilling. Individual sand bodies
were 10 to 50 feet in thickness with average porosities in the
range of 5% - 15%. Following wireline logging, pressure surveying
and fluid sampling, a petrophysical evaluation concluded that these
sandstones contained low hydrocarbon saturation levels of between
20% - 30%. The sandstones were of very poor reservoir quality,
having very low permeabilities of circa 1 to 5 millidarcies. While
not commercial the exploration results did provide evidence of an
active petroleum system which is encouraging for future exploration
upside within the Duyung PSC.
Next Steps
The valuable information collected from this campaign will be
used to revisit the resource estimates for the field. The Duyung
PSC partners will be commissioning an independent assessment of
resources, which we currently expect to be completed late Q1
2020.
Further details will be provided in due course.
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.
**S**
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
UPDCKBDNOBDKADB
(END) Dow Jones Newswires
November 22, 2019 02:45 ET (07:45 GMT)
Grafico Azioni Empyrean Energy (LSE:EME)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Empyrean Energy (LSE:EME)
Storico
Da Mar 2023 a Mar 2024