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(Alliance News) - Empyrean Energy PLC said Tuesday alongside Coro Energy PLC that the resource estimates for the Mako gas field has been upgraded by operator Conrad Petroleum Ltd, following a successful drilling campaign in the final quarter of 2019.
Empyrean also announced that it has raised GBP410,590 through a subscription of shares, and is proposing a placing to raise GBP1.0 million, which will go towards funding the company's share of costs at its projects in China, Indonesia and the US.
The subscription had Empyrean issue 11.7 million shares to existing investors and directors at a price of 3.5 pence per share a 10% discount to the company's closing price of Thursday last week.
The proposed placing will feature the issuing of shares at the same price as the subscription through an accelerated bookbuild managed by broker Cenkos Securities PLC.
For the Mako fields, which forms part of the Duyung production and sharing contract in the West Natuna basin, offshore Indonesia, the resources were upgraded following a successful drilling campaign.
The gross low case contingent resource has been estimated at 323 billion cubic feet of recoverable raw gas, reflecting an increase 76% from the pre appraisal estimate of 184 Bcf in the 2019 Gaffey, Cline & Associates assessment.
Mid case, the contingent resources was at 493 bcf, up 79% from 276 bcf in 2019, and in high case resources were estimated at 666 bcf, a 70% increase from 392 bcf.
"The success of the appraisal drilling program at the Mako gas field last December has resulted in an outstanding uplift in contingent resources across all categories. The implications of a thicker and better quality reservoir with a gas water contact 5 feet deeper than previously assumed has not only been the driver for the resource uplift but has also had a particularly positive impact on potential development scenarios with up to a 150 million cubic feet per day plateau production rate now being modelled," said Chief Executive Officer Tom Kelly.
Shares in Empyrean Energy closed down 4.7% at 3.72 pence on Tuesday in London, while Coro Energy shares closed 6.7% lower at 0.49p.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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