Empyrean Energy said it will go ahead with the drilling of the Topaz prospect, offshore China, after analysis of the Jade well on the same block.
Jade was drilled to a depth of 2,849m and found no oil or gas but Empyrean said analysis of its drill data had confirmed carbonate reservoir parameters are better than pre-drill estimates with a total thickness of 292m and porosity in the range of 25 to 27%.
“In addition, the Jade well penetrated thick and effective regional seal facies and the reservoir top was encountered within the depth conversion range," it said in a statement.
“These parameters can now be more confidently mapped across Empyrean's 3D data set.”
Tom Kelly, Empyrean’s chief executive, added: "Being able to combine our excellent quality 3D seismic data with the confirmed well data and post well analysis has improved the validity of the Topaz prospect as a robust and large drilling target of approximately 891mln barrels in place (P10).
Empyrean’s partner on the exploration of Block 29/11 is Chinese state oil company CNOOC, which can take a 51% stake if the project moves to the development and production phase.
Moving forward with Topaz requires Empyrean to pay CNOOC US$250,000 with the work obligation to drill an exploration well within 2 years.
Kelly added the company had also started to look at additional oil and gas projects to balance out its portfolio.