Australia-based exploration company Empyrean has signed a new agreement with Sacgasco to increase its interest in multiple gas projects in the Sacramento Basin, California, US.

The agreement will see the company increase its working interest (WI) in the Dempsey prospect from 25% to 30%, targeting one trillion cubic feet (Tcf) conventional gas to be drilled in the third quarter of 2017.

Furthermore, through the agreement, Empyrean seeks to increase its stake in Alvares appraisal prospect from 10% to 25%, targeting two Tcf gas.

The company will now have a 30% interest in Dempsey Trend AMI, including at least three large Dempsey style follow up prospects, in exchange for providing technical assistance to Sacgasco to further mature prospects.

"Any discovery we make can very quickly be put into production to create early cash flow."

Empyrean CEO Tom Kelly said: "The increased interest in the Sacramento Basin projects reflects our increasing confidence and understanding of the opportunity to be part of an exciting package that offers multiple chances to make very large gas discoveries in a region of the US with increasing gas demand and excellent existing surface infrastructure. 

“Any discovery we make can very quickly be put into production to create early cash flow.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Under the terms of the agreement, Empyrean will pay a further $90,000 within three working days of signing a definitive farm-out agreement and joint operating agreement (JOA) with Sacgasco.

This will allow Empyrean to secure its right to participate in the Dempsey Prospects.

Upon completing this payment, Empyrean will have to pay $2m towards the dry hole cost of the Dempsey-1 Well to earn its increased 30% WI in the prospects.

As a precursor to increase its WI, the company has also agreed to pay 33.33% of the dry hole well costs in the next Alvares appraisal well.

With respect to Dempsey Trend AMI, Empyrean has to pay 60% of dry hole cost of Prospect #1, and 45% of the dry hole cost of Prospect #2 and Prospect #3.