Empyrean Energy PLC (AIM:EME) said the aim for the second phase of exploration on Block 29/11 offshore China is to drill the Topaz well before June 2024.
A first well at the Jade prospect proved unsuccessful, but Tom Kelly, CEO, said that post the drilling Empyrean had been able to combine 3D seismic data with the confirmed data in a way that has improved the validity of the Topaz prospect.
Topaz has an estimated 891mln barrels in place (P10).
In Indonesia, Kelly said the company continues to look at ways to maximise the value of its Mako gas field, which would strengthen the company's balance sheet and help fund the drilling of Topaz.
An updated development plan has been submitted to the government for approval with a new competent person's report (CPR) prepared by GaffneyCline & Associates.
The report indicated a potential 51% internal rate of return (IRR) and valued the project at US$877mln (net present value).
Empyrean has an 8.5% interest in Mako, while AIM-peer Coro Energy PLC (AIM:CORO) has a 15% stake (read more).
In California, Empyrean will review and assess any further technical and commercial opportunities that arise, particularly in light of strong gas prices for gas sales in the Sacramento Basin.
Results for the year to end March 2022 showed losses of US$8.1mln. Empyrean raised US$2.25mln in May through a placing.