Empyrean Energy PLC (AIM: EME) said it has been informed by Krescent Energy Co LLC, the operator of the Riverbend gas project in Texas, that a drilling contract is now in place for the re-entry and drilling of the Quinn 3H well.
When Quinn 3H was previously drilled, it encountered multiple gas flares and shows in the primary target zone before hitting a very high pressure gas zone that ultimately resulted in a blowout.
Krescent took remedial action and was able to plug the vertical section of the well but lost the final 1,000 feet of horizontal. The newly contracted rig has higher pump capacity and pressure rating that is designed to drill in the high gas pressure environment and allow the partners to complete a lateral of desired length within the target zone prior to moving forward with completion operations.
The well has a sales pipeline already connected and upon successful completion of the horizontal the well will be flow tested direct to sales.
Krescent has begun mobilising the rig to the drill site, and a further announcement will bemade when drilling commences.
Empyrean announced at the beginning of June that it had entered into an agreement with Krescent to acquire a 10 percent working interest in Riverbend, which is located in a highly prospective area for gas discoveries. To the south of Riverbend is the Brookeland Field and to the south-east the Woodbine Field. To the north and west, Anadarko Petroleum and Ergon Oil have reported exceptional flow rates from the Austin Chalk and Saratoga Chalk zones.
Empyrean noted that more than 30 drill locations had already been identified at Riverbend, and that Krescent has completed 60 square miles of 3-D seismic.
A few days after announcing its entry into the Riverbend project Empyrean said it has raised £724,000 before expenses, through an institutional placing with institutional investors, with the new funds be used for working capital and for the further development of the new project.