Empyrean Energy PLC (AIM:EME) has now acquired a stake in the Wilson River oil exploration project, in Queensland, Australia.
The Wilson River prospect, situated close to existing infrastructure and producing oil fields, holds prospective oil resources estimated between 8.7 million and 37.4 million barrels of oil equivalent (MMBOE), with a mean estimate of 21.3 million.
Following the completion of EME’s deal to acquire a 40% stake, the project will now advance to well drilling.
Part of the deal sees EME cover the cost of two-thirds of the programme, estimated to have a gross cost of A$2.8 million.
"Empyrean is pleased to have secured the opportunity to drill this exciting conventional oil target nearby to existing Santos-Beach and Bridgeport discoveries,” Empyrean technical director Gaz Bisht said in a statement.
“Empyrean is also excited to be working alongside the Chi Oil and Condor Energy teams to plan for and execute this upcoming drilling program.
Bisht added: “Empyrean is encouraged by the fact that Condor Energy are prepared to put equity on the line and take a direct participating interest in the Wilson River 1 well."