Empyrean Energy is counting down to exciting Jade well
- Empyrean Energy signs up driller for Jade exploration well offshore China
- Empyrean Energy counting down to transformational Chinese exploration well
- Empyrean Energy has huge upside if Jade well comes in, says Cenkos
- Empyrean Energy secures rig and begins countdown to Jade well drilling
Quick facts: Empyrean Energy PLC
Price: 6.2 GBX
Market Cap: £35.53 m
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
The company awarded the contract to China Oilfield Services Limited (COSL) which proposed a significantly reduced drilling cost estimate of US$12.3mln, compared to a prior US$18.5mln estimate, with a US$7.4mln success-based bolt-on for testing.
Planning and permitting operations are continuing. Empyrean noted that COSL has confirmed its availability along with all technical, commercial and contractual terms.
"This award of contract to COSL at approximately 34% below our previously anticipated drilling cost estimate is a massive leap forward for Empyrean and the reduced drilling cost is effectively better than a 34% JV style deal as there is zero dilution to Empyrean,” said chief executive Tom Kelly.
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 PLC (AIM:EME, FRA:E1E)'s Gaz Bisht tells Proactive they've signed up a rig for the planned Jade exploration well in China, setting a December spud date. The company awarded the contract to China Oilfield Services Limited which proposed a significantly reduced drilling cost estimate of US$12.3mln, compared to a prior US$18.5mln estimate.
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