Empyrean Energy PLC (AIM:EME) has reported drilling is underway on the Jade prospect at its 100% owned Block 29/11 permit, offshore China.
The LH 17-2-1 well spudded on at 19:30 on 10 April 2022 with a 36" surface hole drilled down to 588 metres Measured Depth (MD).
Current operations are the installation of the 30" surface conductor, Empyrean added.
Tom Kelly, Empyrean chief executive, said: "Empyrean is delighted to inform shareholders that following successful anchoring operations at the Jade location we have spudded the Jade well over the weekend and drilled the first section of hole.
“The Empyrean, COSL and CNOOC EnerTech teams are working very well together to drill the well safely and achieve the objective."
Expected Total Depth (TD) of the well is 2,860 metres with Logging While Drilling (LWD) operations to be carried out simultaneously.
If hydrocarbons are found in the main target zone, Empyrean said it will run additional Combo Logs to confirm any oil pay zones.
In the event of a commercial discovery, partner China National Offshore Oil Company (CNOOC) can take a 51% participating interest in the development and production phase.
Ahead of drilling, consultant Gaffney Cline & Associates (GCA) assigned a 32% chance of success to the well, though an additional analysis by Empyrean raised the possibility to 41%.
The Jade prospect has a GCA audited mean in-place potential of 225 MMbbl (million barrels) and a P10 in place upside of 395 MMbbl.
Jade is the first of the three identified prospects within Block 29/11, which also contains the Topaz and Pearl prospects with a combined in-place potential of 884 MMbbl.
Any oil discovered is expected to be light and in the 38-41 API range, similar to nearby discoveries.