Operations update: Riverbend project
19 March 2013
Empyrean Energy PLC
('Empyrean' or the 'Company', (AIM: EME))
Riverbend Project, onshore Texas, USA
Highlights
· New operator appointed
· Operations to recommence at Riverbend
· Cartwright-1H well to be recompleted uphole in Wilcox zone
Empyrean Energy Plc provides the following update on operations at the Riverbend Project in Texas:
Appointment of new operator
Empyrean is pleased to advise that the partners in the Riverbend Project, where Empyrean holds a 10% working interest, have appointed a new operator in Krescent Energy Partners II, LP ("KEP II"). KEP II is a wholly owned subsidiary of Huff Energy Holdings, Inc. ("Huff") of Houston, Texas. KEP II is also a partner in the Riverbend Project. Another subsidiary of the Huff group, Panther Bayou Energy, LLC, will assist with the operating functions and provide billing and revenue services to the partners. The previous operator, Krescent Energy Company LLC, were a contract operator only without a direct interest in the project and has been replaced by KEP II.
Cartwright-1H well
Empyrean has received, and elected to proceed, with a proposal to recomplete the Cartwright-1H well in the Wilcox interval between 9,584 feet to 9,590 feet vertical depth. The Wilcox interval is shallower than the original Austin Chalk target and KEP II has interpreted from petro-physical analysis that it may be productive. KEP II has also interpreted from seismic that the Wilcox zone of interest appears to be stratigraphic in nature as no structural closure has been mapped.
The existing well has a downhole obstruction that is currently limiting production to sub-economic flow rates from the Austin Chalk zone. KEP II will re-enter the existing well bore and set a plug above the downhole obstruction and then proceed with operations to perforate and test the shallower Wilcox zone. The anticipated cost of the operation is approximately US$125,000 - US$200,000 and therefore Empyrean's share of these costs is expected to be in the range of US$12,500 - US$20,000.
KEP II believes that a successful recompletion in the Wilcox zone of interest could deliver flow rates in the range of 30 - 40 barrels of oil per day and 200,000 - 250,000 cubic feet of gas per day.
KEP II has also advised that future operational plans will depend on well response to the recompletion operations.
Empyrean will make further announcements to update in due course.
Commenting today, Empyrean CEO, Tom Kelly said, "We are delighted that operations are to recommence at the Riverbend Project. Given the relatively low anticipated cost of the recompletion attempt, Empyrean feels that the operation offers an appropriate risk versus reward to establish economically viable production from the Cartwright-1H well."
The information contained in this announcement was completed and reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.
For further information
Empyrean Energy plc
Tom Kelly
+618 9480 0111
Shore Capital
Anita Ghanekar
Edward Mansfield
+44 (0) 207 408 4090
Jonathan Charles
Lionsgate Communications
E: jcharles@lionsgatecomms.com
M: +44 (0)7791 892509
Notes to Editors:
Empyrean Energy Plc is an AIM-listed (Ticker: EME) condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA. Other assets include a 10% working interest in the Riverbend Project, Texas, just north of the prolific Brookeland Field (Austin Chalk) as well as a 48.5% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California.
Empyrean's portfolio includes an interest in over 70 producing wells with scaleable growth potential from further development and exploration upside.
This information is provided by RNS
Latest directors dealings
- 23 hours ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund