Empyrean awards contract for survey of China offshore block

(Sharecast News) - China, Indonesia and United States-focussed oil and gas development company Empyrean Energy has awarded a contract for the well site survey over the Jade prospect, it announced on Tuesday, to China Oilfield Services (COSL), on Block 29/11 offshore China.
The AIM-traded firm is the operator of the block, holding a 100% working interest during the exploration phase.

In the event of a commercial discovery, its partner China National Offshore Oil Company (CNOOC) could assume a 51% participating interest in the development and production phase.

In preparation for spudding of the Jade prospect well in mid-December, the company said it had agreed a "comprehensive scope" for the survey with COSL.

The objective of the well site survey was to identify all possible constraints and hazards including man-made, natural and geological features which could affect the operational or environmental integrity of a proposed drilling operation.

In addition, the survey was designed to provide sufficient data to fully assess potential top-hole drilling hazards at the proposed well location, and to ensure the rig could be secured safely onsite.

The survey was scheduled to start in late October, subject to a safe weather window for operations.

"The well site survey contract award marks an important and crucial milestone towards conducting a safe drilling operation in mid-December," said chief executive officer Tom Kelly.

"We are thankful to both CNOOC and COSL who both have enabled detailed discussions and timely approval during our planning process.

"December is shaping up as an important event in the corporate history of this company."

At 0908 BST, shares in Empyrean Energy were up 4.82% at 6.39p.