Empyrean Energy Plc (LON:EME) shares advanced after releasing a statement confirming what it described as ‘commercial gas flows’ at the Dempsey well in the Sacramento basin, onshore California.
The well tested at a rate of 1mln cubic feet of gas per day from the Kione Zone in the Dempsey well.
It was described as a “very encouraging flow rate” and the company highlighted that it was “water free natural gas”.
"A commercial gas flow from this particular Kione sand is positive news for the Dempsey Well and the JV partners,” said Tom Kelly, Empyrean chief executive.
“With preparations underway to test Zone 4 and adding any resulting gas flows together with flows from all zones tested to date, Dempsey is shaping up to provide the JV with early cash flow.
“Infrastructure connected to the well will expedite the timeframe from discovery to gas sales and cashflow. The JV is retaining plenty of flexibility with regards to future testing and production alternatives."
Empyrean shares were up 1.02p or 8.3%, changing hands at 12.38p.