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LONDON (Alliance News) - Oil and gas firm Empyrean Energy PLC on Tuesday said the operator of a well in California has reported a "very encouraging" commercial gas flow rate.
Sacgasco Ltd, which runs the Dempsey 1-15 well in the Sacramento basin in onshore California, has reported a flow rate of 1 million cubic feet of gas a day.
The rate is "very encouraging", Empyrean said, as it is water free natural gas.
The gas is coming from the field level Kione zone, and Empyrean said operational considerations meant perforating the Kione zone ahead of zone 4 would benefit zone 4 sands once they were perforated.
Empyrean said preparations for testing zone 4 are underway, and once this is done Sacgasco is to combine production from all tested zones in the Dempsey 1-15 well.
The operator, Empyrean added, expects very early cash flow due to the gas sales infrastructure already connected to Dempsey.
Chief Executive Tom Kelly said: "A commercial gas flow from this particular Kione sand is positive news for the Dempsey Well and the JV partners. With preparations underway to test Zone 4 and adding any resulting gas flows together with flows from all zones tested to date, Dempsey is shaping up to provide the JV with early cash flow.
"Infrastructure connected to the well will expedite the timeframe from discovery to gas sales and cashflow. The JV is retaining plenty of flexibility with regards to future testing and production alternatives."
Shares were up 7.9% on Tuesday at 13.32 pence each.
