Empyrean Energy lets drilling contract for Jade prospect

Empyrean Energy PLC has let an integrated drilling contract (IDC) to China Oilfield Services Ltd. (COSL) for the Jade prospect exploration well on Block 29/11, offshore China. Target spud date is mid- to late-December.

Jade is the first of the three identified prospects within Block 29/11, which also contains the Topaz and Pearl prospects. Empyrean awarded the well site survey contract to COSL in October 2021 and is progressing other drill preparation activities (OGJ Online, Oct. 5, 2021). The survey will begin as soon as there is a good weather window with low enough swell to complete the survey safely and effectively, the company said. Drilling and geological programs have been finalized and are incorporated into the contract.

Empyrean's 3D seismic indicates that there is a classic fill to spill geological setup in the basin, and a robust regional seal, that provides Jade and Topaz prospects with a possibility of being filled in a similar fashion to nearby discoveries. Jade and Topaz have gas clouds, like nearby discoveries, in the overburden on 3D seismic. Dry wells nearby do not have gas clouds.

The combined audited mean in place potential of Jade, Topaz, and Peral prospects is 884 million bbl and a P10 in place upside of 1,588 million bbl. The post stack seismic inversion study showed Jade and Topaz both have the potential for excellent carbonate buildup reservoir quality with excellent porosity and permeability, hte company said. Any oil discovered is expected to be light in the 38-41° API range, like nearby discoveries.

Empyrean is operator of the block and holds 100% working interest during the exploration phase. In the event of a commercial discovery, partner China National Offshore Oil Co. (CNOOC) may assume a 51% participating interest in the development and production phase.