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Empyrean Energy Plc set for “exciting time” as Jade well nears

Empyrean said preparations are on track for the start of drilling at its Jade prospect.

Empyrean Energy PLC (AIM:EME) chairman Patrick Cross said it is an “exciting time” for the oil and gas development company as it prepares to start drilling at its Jade prospect, offshore China, in the New Year.

“It is most pleasing to advise that drill preparation activities have progressed well throughout the latter part of the year, culminating in the signing of an Integrated Drilling Contract in November, at a significantly reduced cost to initial estimates,” Cross said, as Empyrean reported interim results for the six months ended September 30.

“With the drill rig confirmed, the well will spud following the completion of the well site survey and final permits are in hand. Needless to say this is a very exciting time for the company.”

In the interim results, Empyrean said the drill preparation activities are on track for drilling of the Jade prospect.

It added that the well design is completed, the integrated drill contract signed, and the drill rig is confirmed.

In November, the company said it expected the well would spud in ‘late December’ though an update last week said it was ‘on target to commence shortly after weather conditions allow the completion of a well site survey.”

November’s integrated drill contract outlined a reduced well cost estimate of US$12.3mln, down from US$18.5mln) along with a success-based testing cost estimate of US$7.4mln.

Jade was previously estimated by the company’s internal geology team to have a 41% chance-of-success.

Elsewhere, Empyrean Energy said it continues to advance negotiations regarding a gas sales agreement for the Duyung PSC, Indonesia.

In terms of the financials, EME reported a US$452,000 loss for the six months and said it ended September with US$6.09mln of cash – before a £7.6mln raise in December.

Read More: Empyrean Energy Plc set for “exciting time” as Jade well nears

2021-12-23 02:30:00

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