Empyrean Energy gains exploration permit for Block 29/11 in offshore China

Empyrean Energy has received a permit for 100% of exploration rights from China National Offshore Oil (CNOOC)for Block 29/11 in the Pearl River Mouth Basina, 200km south-east of Hong Kong.

During the exploration phase, Empyrean will operate the permit, which is in seabed depths of 340m-600m.

The company will acquire and complete processing and technical evaluation of 500km² of 3D seismic data.

Empyrean Energy CEO Tom Kelly said: “The permit represents a fantastic opportunity for Empyrean, given its significant resource potential and the presence of two large and relatively mature drilling prospects, Jade and Topaz.

"The permit represents a fantastic opportunity, given its significant resource potential and presence of two large and mature drilling prospects."

“Therefore, we look forward to advancing these, as well as additional targets identified, alongside Gaz Bisht, who has a very thorough understanding of the region via his previous extensive work in the region.”

The permit is directly south of a large producing field and covers 1800km².

Jade and Topaz exploration prospects have been mapped within the permit area with multi-vintage 2D seismic shot in 1979, 1986 and 1989.

After completing the exploration phase of the permit, Jade and Topaz will decide on an alternative to enter the PSC to drill the prospects on the permit.

The options may include farming-out the drilling of exploration wells to a capable partner or raise additional financing to allow the company itself to undertake this process.

Empyrean hopes that it will be able to reposition itself for growth through this permit and will further seek to farm-out or sell its remaining US assets.