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November 9, 2018

Empyrean reports 9% increase in estimates for Chinese offshore block

Empyrean Energy has reported a 9% increase in the oil initially in place estimates over prospects in Block 29/11, Pearl River Mouth Basin, located in the South China Sea.

Empyrean Energy has reported a 9% increase in the oil initially in place estimates over prospects in Block 29/11, Pearl River Mouth Basin, located in the South China Sea.

The new estimate comes after Gaffney, Cline & Associates (GCA) conducted an independent audit of the company’s oil estimates over the Jade, Topaz and Pearl prospects.

With the upgrade, the total mean oil in-place has increased to 884MMbbl from a previously estimated 814MMbbl.

GCA also carried out an assessment of the geological chance of success (GCoS) of the three prospects. The results determined that GCoS of Jade and Topaz prospects is respectively 32% and 30%.

“The work done by GCA certainly supports Empyrean’s view on the potential size and attractiveness of these prospects.”

In June, Empyrean revealed its internal estimates following the 608km² interpretation of the 3D seismic data acquired last year.

Empyrean Energy CEO Tom Kelly said: “It is particularly pleasing to see that the Jade and Topaz prospects are expected to have close to a 1-in-3 chance of geological success and over a billion barrels of potential oil in-place, combined, on a P10 basis un-risked.

“The work done by GCA certainly supports Empyrean’s view on the potential size and attractiveness of these prospects.

“It is pleasing to see independent expert validation of a major component of our work so far as we work towards unlocking value for our shareholders.”

As part of the audit, GCA reviewed and validated the available data and existing interpretations.

Operated by Empyrean with 100% exploration rights, the 1,800km² permit is situated south-east of the Liuhua Oil Field complex, which is operated by China National Offshore Oil (CNOOC).

In September, CNOOC signed a production sharing contract (PSC) over Block 29/11 with Empyrean.

Under the terms of the PSC, Empyrean will remain operator of the block during the exploration phase.

Following commercial discovery, CNOOC will have the right to participate in up to 51% of the participating interest.

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