Empyrean Energy PLC (AIM:EME) inked an integrated drilling contract (IDC) for the planned exploration at the Jade prospect, offshore China, ahead of a ‘late December’ spud.
The company has contracted China Oilfield Services Limited (COSL) for the drill programme and the contractor has now confirmed rig availability and all the technical, commercial and contractual terms are agreed.
Empyrean highlighted that the IDC confirmed a significantly reduced drilling cost estimate of US$12.3mln, down from US$18.5mln, with an estimate of US$7.4mln for testing in the event that the well is successful. The company is to pay a 10% deposit on the drill costs.
"The signing of the integrated drilling contract with COSL, marks another important milestone for Empyrean as we gather momentum on the downhill run to drilling the Jade prospect next month,” said chief executive Tom Kelly.
“We thank COSL for their diligent and collaborative approach to date. We have already locked in the drill rig and awarded the well site survey and are making very good progress with other drilling preparation activities, acquiring long lead items and securing the necessary drill permits.
“As announced last week we have engaged CNOOC EnerTech to manage a number of these critical workstreams. Finally, we would like to again thank CNOOC for their continued support and cooperation throughout this process."