Empyrean Share News (EME)

AIM-listed oil and gas exploration company Empyrean Energy will recommence operations at the Riverbend project, where it holds a 10 per cent working interest.In an update issued on Tuesday, Empyrean Energy reported that a new operator had been appointed and said that the Cartwright-IH well would be recompleted uphole in the Wilcox zone.The company added that the partners in the Riverbend Project appointed a new operator in Krescent Energy Partners II, LP (KEP II). KEP II is a wholly-owned subsidiary of Huff Energy of Houston, Texas and KEP II is also a partner in the Riverbend Project. Empyrean reported that another subsidiary of the Huff group, Panther Bayou Energy, LLC, would assist with operating functions and provide billing and revenue services to the partners. Empyrean further announced that it had 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 company said that the existing well has a downhole obstruction that is currently limiting production to sub-economic flow rates from the Austin Chalk zone. It said that KEP II would 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 $125,000-to-$200,000 and Empyrean's share of the costs is expected to be in the range of $12,500-to-$20,000. Empyrean reported that KEP II believes a successful recompletion in the Wilcox zone of interest could deliver flow rates in the range of 30-to-40 barrels of oil per day and 200,000-to-250,000 cubic feet of gas per day.Tom Kelly, Chief Executive Officer of Empyrean, 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."Empyrean Energy's share price was up 2.13% to 6.0p at 10:51 on Tuesday.MF