Empyrean Energy PLC (AIM:EME) shares short up 5% to 7.4p after the company updated on preparations to drill the Jade prospect at its Block 29/11 permit.
Empyrean’s partner, China National Offshore Oil Company (CNOOC), has created a slot for Empyrean to drill the Jade well in its schedule, immediately following the well currently being drilled using the NH9 drilling rig. The rig, which is owned by China Oilfield Services Limited (COSL) is anticipated to become available in late March or by mid-April depending on whether the current well encounters testable hydrocarbons.
CNOOC EnerTech Drilling and Production has been contracted to provide comprehensive pre-drilling, drilling and testing services to Empyrean for the Jade well.
CNOOC EnerTech has a wealth of global experience, but more importantly has vast local hands-on experience managing the drilling of wells within the Pearl River Mouth Basin where the Block 29/11 permit sits, Empyrean said.
The Empyrean/CNOOC EnerTech team will be present both onshore and offshore on the rig, during the drilling of Jade.
Offshore, the team will consist of a hand-picked drilling supervisor, well site geologist, mud-logger and an electric logging expert.
The London-listed oil explorer also revealed it is expecting to receive the final survey report on the well within the next few days. It is then anticipated that the final permit to drill Jade will be applied for and received within a week or so.
From the spud date, now expected to be early April to mid-April, the Jade well is anticipated to take roughly 26 days to drill to total depth on a trouble-free basis. There are no overly challenging drilling zones anticipated with the Jade well design and programme. If the Jade well intercepts a hydrocarbon zone, as anticipated, then testing is planned to take about a further two weeks.
"After nearly six years of early-stage exploration, including modern 3D seismic and rigorous geological studies we are finally ready to drill the exciting Jade well. We are literally weeks away from testing the 225-395 mmbbl [millions of barrels] light oil target at Jade,” said Tom Kelly, the chief executive officer of Empyrean.
“In terms of impact - and by that I mean the potential impact a discovery, within the 225-395 mmbbl range, would have in the success case upon our current market capitalisation - Jade is one of the most exciting wells to be drilled globally in 2022,” he added.
“We now need to let the drill bit do the talking!” he declared.