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Empyrean Energy announce Mako gas field appraisal and exploration drilling programme

Published by , Editorial Assistant
Oilfield Technology,

Empyrean Energy Plc (‘Empyrean’), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to advise that Empyrean, Conrad Petroleum, and Coro Energy Plc (the ‘Partners’) have agreed the upcoming drilling programme in the Duyung Production Sharing Contract (‘PSC’) in the West Natuna basin, offshore Indonesia which contains the Mako gas field.

The campaign will comprise two wells, one exploration well designed to test the Tambak prospect beneath the central area of the Mako gas field, and one appraisal well designed to appraise the intra-Muda sandstone reservoir in the southern area of the Mako field. The drilling campaign is anticipated to start in the 4th quarter of 2019, with each well taking approximately 33 days to drill and test. The gross cost of the programme is expected to be approximately US$17 million to the Partners on a fully tested basis, including rig mobilisation and de-mobilisation.

As part of the deal to acquire its 15% interest in the PSC, Coro Energy Plc will be contributing US$10.5 million to the total cost of the drilling campaign with the balance to be covered by the Partners pro rata to their respective interests. Empyrean has an 8.5% interest in the PSC.

The Tambak prospect is an inverted anticlinal structure located beneath the main Mako gas field in the central area of the field. The prospect contains approximately 250 billion ft3 of prospective resources in the mid-case and is risked at a 45% chance of success. The well will be drilled to a total depth of approximately 1370 m true vertical depth sub-sea (‘TVDSS’), with a testing suite planned for both the intra-Muda Mako reservoir level as well as the Lower Gabus prospective target horizons.

The second well in the programme, is an appraisal well which is designed to intersect the intra-Muda reservoir at approximately 380 m TVDSS. A full evaluation suite including coring, wireline logging and open hole testing of the reservoir section is planned. The well will provide an important calibration point for the southern area of the field and is planned to demonstrate further contingent resource, which in turn will support the gas marketing efforts. An independent review by Gaffney Cline & Associates ascribed gross 2C resources of 276 billion ft3 (48.78 million boe) of recoverable dry gas in the Mako field with gross 3C resources of 392 billion ft3 (69.3 million boe) representing additional field upside.

Empyrean CEO, Tom Kelly commented “Empyrean looks forward to this exciting drilling programme that is designed to both appraise the existing Mako Gas Discovery as well as testing the deeper Tambak exploration prospect. This programme is a crucial step in the Plan of Development for Mako and paves the way for completion of gas sales negotiations as well as potentially increasing resources at Mako and possibly below the Mako discovery.

“This is an exciting period for the Company. In addition to the upcoming drilling campaign at Duyung, progress is being made across our asset base. At our 100% owned Block 29/11 in the Pearl River Mouth Basin offshore China, an independent review recently assigned a 1-in-3 chance of geological success and over a billion barrels of potential oil in-place on a P10 basis un-risked to the Jade and Topaz prospects. With such a diversified portfolio, I believe that we have a very solid foundation for growth and I look forward to providing further updates on our progress.”

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