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Empyrean Energy highlights “encouraging” early results from ongoing Demsey well programme

Success in shallower gas zones are expected to cover the costs of the well, which is still to test deeper and significantly larger exploration targets.

oil and gas well drilling
Drilling will resume shortly

Empyrean Energy PLC (LON:EME) reported that four gas zones have now been confirmed in the Demsey exploration well in California’s Sacremento basin.

The explorer has a 30% stake in the well, drilled by operator Sacgasco Ltd, where results from wireline and mud logs indicate a net pay range between 30 and 50 feet.

Drilling operations are not yet complete, however, and, once the next phase of cement casing work is complete, the programme will resume to drill down into at least five more targets (which are described as “highly prospective sandstone reservoirs”).

Empyrean chief executive Tom Kelly described the early results as encouraging, as he highlighted communications from partner Sacgasco regarding the programmes successes to date.

“It is pleasing to hear from the operator that it's local team are confident that the gas zones discovered in the shallower zones of this well to date have the potential to provide enough cashflow to at least cover the costs of the well, which is exactly what we had hoped for from these shallower zones.

“This is excellent news in any well where you have shallow pay zones logged before you embark on the exciting drilling of significantly larger deeper primary prospects."

Quick facts: Empyrean Energy PLC

Price: 9.7 GBX

AIM:EME
Market: AIM
Market Cap: £42.96 m
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