Aim-listed junior Empyrean Energy PLC (LON:EME) has been awarded an large offshore permit near to Hong Kong and adjacent to an existing oil field.
Tom Kelly, chief executive, said the permit was a fantastic opportunity given the significant resource potential and the presence of two large and relatively mature drilling prospects, Jade and Topaz.
The permit area is 1,800 sq km and also contains ten leads for follow-up work as well as the two identified prospects.
Empyrean will be the operator and own 100% of the exploration rights for the block, 29/11, which is the Pearl River Mouth Basin, offshore China, around 200km from Hong Kong. A work programme required for the first 24 months will be funded from cash resources.
The permit was awarded after Empyrean applied to the China National Offshore Oil Corporation.
"To have been granted a permit of this size and located on trend to existing large discoveries is a real coup for the Company which follows hot on the heels of our sale of the Sugarloaf AMI Project,” Kelly added.
Empyrean sold its 3% stake in Sugarloaf AMI for US$61.5mln in February.