Empyrean Energy Plc (LON:EME) has told investors that its new exploration strategy has begun with “great success” as the Mako South well has confirmed the presence of gas in the Duyung PSC, offshore Indonesia.
In a stock market statement, Empyrean said it has been informed by the operator that its10% owned Mako South well hit 23 feet of net gas pay.
Empyrean shares shot up 20% in Monday’s early deals, rising 1.25p to change hands at 7.5p per share.
Mako South was drilled to a depth of 1,707 feet. Logging has confirmed the 23 feet of net gas pay, and conventional core was recovered from the target zone for analysis.
Empyrean noted that the Upper Intra Muda, the well’s main target, exhibit better-than-expected porosity, permeability and gas saturation.
Testing operations are now underway, and Empyrean confirmed that gas has flowed to surface.
The company added that, as planned, a 3D seismic programme is likely as it will provide a better understanding of the reservoir size and characteristics.
Empyrean chief executive, Tom Kelly said: "Whilst we have further work to do at Mako to determine the overall size of the potential gas accumulation, Empyrean is extremely pleased that our aggressive exploration programme has kicked off with great success.
“We have a gas discovery with excellent reservoir quality here at the Mako South-1 well location, our first exploration well since we have re-established Empyrean with exciting new assets.
“Empyrean has set out to build a core portfolio of potentially transformational exploration assets in prolific hydrocarbon basins, close to infrastructure and energy-hungry markets.”
Kelly noted that operator Conrad Petroleum had exceeded Empyrean’s expectations regarding timeframes and kept to budget.
“These are certainly exciting times for Empyrean and its joint venture partners. We look forward to providing further updates on testing in the short term,” he added.