Empyrean Energy is counting down to exciting Jade well
Last updated: 08:47 23 Feb 2024 GMT, First published: 13:00 13 Sep 2015 BST
Snapshot
- Empyrean Energy shares boosted on Indonesia milestone
- Empyrean Energy counting down to transformational Chinese exploration well
- Empyrean Energy has huge upside if Jade well comes in, says Cenkos
- Empyrean Energy 'operationally ready' to spud Jade well
About the company
Empyrean Energy PLC is a London AIM listed oil and gas explorer.
The company is currently focused on three cornerstone assets with transformational potential: Block 29/11 offshore China; the Duyung PSC offshore Indonesia and a multi project participating interest in the Sacramento Basin, California.
How it is doing
Empyrean Energy PLC (AIM:EME) welcomed the new update from the Mako field development project, in Indonesia, where key commercial terms have now been approved by the government.
The company, in a statement, said the project's gas price and volume allocation has been approved by the Indonesian Minister of Energy and Natural Resources.
It is seen as a significant milestone that now allows the project operator to finalise fully termed gas sales agreements and advance the project closer to production.
Mako is expected to contribute to Indonesia’s goal of doubling gas production by 2030.
Empyrean Energy PLC (AIM:EME) told investors it has successfully completed a placing to raise £700,000 before costs.
The proceeds support the company as it is expected to cover ongoing licensing fees and permit costs as the explorer’s projects, including the Mako gas field in Indonesia and its exploration acreage offshore China.
Empyrean Energy PLC (AIM:EME) chief executive Tom Kelly has highlighted improving economics at the Mako gas field development project, in Indonesia, as it advances towards first gas production.
The company, in a statement, noted expectations for improved gas price terms and lower capital costs which have further enhanced what Kelly describes as “already robust economics”.
Insight: Empyrean Energy counting down to transformational Chinese exploration well
Empyrean Energy PLC (AIM:EME, FRA:E1E)’ entry into China, back in 2016, gave the AIM-quoted oil and gas firm ‘new colour’, according to chief executive Gaz Bisht, who describes the Jade exploration project as transformational to the company.
Bisht in a Proactive interview said the company is working rigorously to advance its plans for Jade towards a pivotal and exciting drill programme.
What the brokers say
Empyrean Energy PLC (AIM:EME, FRA:E1E) is gearing up to drill the high-impact 225mln barrels Jade prospect offshore China before the end of 2021 in what will be a defining year for the oil and gas group, said house broker Cenkos.
Exploration success at Jade would see the risked valuation of the prospect increase from 9.9p to an estimated 41.8p, or a 320% rise said Cenkos, which compares to a current market price of 5.5p.
Success at Jade would also significantly de-risk both the adjacent Topaz and Pearl prospects, said the broker.
What management says
Empyrean Energy's Gaz Bisht updates Proactive on preparations to drill the Jade prospect on its Block 29/11 permit. Empyrean’s partner, China National Offshore Oil Company (CNOOC), has created a slot for Empyrean to drill the Jade well in its schedule, immediately following the well currently being drilled using the NH9 drilling rig. The rig, which is owned by China Oilfield Services Limited (COSL) is anticipated to become available in late March or by mid-April depending on whether the current well encounters testable hydrocarbons.