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https://knowledge.sharescope.co.uk/2021/10/06/empyrean-energy/
? China’s Largest Oilfield Contractor – COSL is China’s largest oilfield contractor and one ofthe largest energy service companies globally. COSL has the largest drilling fleet in Asia and
the third-largest drilling fleet worldwide, with 36 jack-up rigs, 12 semi-subs and six modularrigs, all equipped with the latest technology. Empyrean has previously hired COSL tocomplete a 580km2 3D seismic survey in Block 29/11, offshore China, in 2017. Empyrean hasalso had previous experience of using COSL’s drilling capabilities as part of the 2019 DuyungPSC drilling campaign, in Indonesia, where COSL employed the Asian Endeavour-1 jack-uprig to drill the Tambak-1 and Tambak-2 wells
? A Well To Watch – The Jade prospect is one of the most exciting prospects to be drilled by a junior oil and gas explorer this year. Jade is a four-way dip closed carbonate build-up encased in marine shale, situated up dip and proximal to several CNOOC oil discoveries. The prospect is estimated to contain 225mmbbls of gross mean oil in place, with Empyrean assigning the prospect an internal 41% geological chance of success (GCoS).
With the exception of one field, which is 90% full, all of the CNOOC discoveries situated along the migration pathway to Block 29/11, which also contains the Jade prospect, are “filled tospill”. As such, the CNOOC discoveries have often been close to their P1 or at the very least their P10 oil in place volumes. In the P10 case, the Jade prospect contains 395mmboe of oil in place.
A comprehensive oil migration study, completed in June 2018 interpreted that the Jade prospect was potentially filled from at least two different migration pathways. Whilst analysis of the 3D seismic data from over the nearby LH 23-1d-1 oil discovery has helped confirm the potential “fill and spill” pathways to the Jade structure from the LH-23-1d-1discovery.
In May 2019, comprehensive analysis of the 3D seismic data also revealed the presence ofwell-defined gas clouds above the Jade prospect. Gas clouds have been effectively used asan exploration tool in many geological basins (eg North Sea, Gulf of Mexico), leading to the discovery of significant amounts of oil.
Subsequent to the gas cloud study, post stack seismic inversion work confirmed the potential for a world-class carbonate reservoir at the Jade prospect. Analysis of the seismic inversion data confirmed that the Jade prospect had the potential for a world-class reservoir, with porosities between 20-30% and 1 Darcy permeabilities. Any oil discovered is expected to be light oil in the 38-41 API range, similar to nearby discoveries. These attributes combined with the potential for exception natural reservoir drive support the potential for excellent
recovery rates.
Empyrean Energy Plc
Well Site Survey Awarded
Empyrean has announced the award of the contract for the well site
survey over the 225mmbbl Jade prospect to China Oilfield Services
Limited (COSL). The award of the well site survey contract marks another
important milestone for Empyrean as the Company moves towards the
drilling of the Jade prospect in December 2021.
As explored in our previous report, exploration success at Jade would see
our risked valuation of the Jade prospect increase from 9.9p to an
estimated c41.8p, a c4.2x increase. Success at Jade would also
significantly de-risk both the adjacent Topaz and Pearl prospects.
Unrisked (the point at which there is 0% risk) our valuation of the Pmean
resources at Jade would increase to c83.7p.
With all but one of the adjacent CNOOC oil discoveries “filled to spill”,
their recoverable resources are close to the P1/P10 oil in place volumes.
Assuming a P10 oil in-place volume for the Jade prospect increases our
unrisked valuation from an estimated c83.7p to c135.7p. BUY.
? Another Important Milestone – Empyrean Energy has awarded a contract for the
well site survey over the Jade prospect to COSL on Block 29/11. The objective of the
well site survey is to identify all possible constrains and hazards which may affect the
operational or environmental integrity of a proposed drilling operation. In addition,
the survey is designed to provide sufficient data to fully assess potential top-hole
drilling hazards at the proposed well location and to ensure the rig can be secured
safely onsite.
The site survey is scheduled to commence in late October 2021, subject to a safe
weather window for operations.
? High Impact Exploration at a Discount – In September, Empyrean awarded COSL an
Integrated Drilling Contract (IDC) for the drilling of the Jade prospect exploration well
in mid to late December. The final IDC is expected to be signed in the coming weeks
once the ancillary drilling programme and geological programme have been
finalised.
Empyrean had previously been quoted a dry hole cost of US$18.5m; however,
following detailed well engineering and design work with AGR, Empyrean and COSL
have agreed a substantially reduced turnkey dry hole cost of US$12.3m, a c34%
saving on the initial quote. The substantially reduced drilling contract quote has been reached without compromising well design, safety or operational efficiency. On a success case, testing of any oil column has been quoted at US$7.4m.
The award of a contract to COSL at c34% below the initial quote is significant and is effectively better than a 34% JV farm out, maintaining Empyrean’s 100% exposure
without the need for any asset dilution.
here's an extract from yesterday brokers report from Cenkos on #EME
With all but one of the adjacent CNOOC oil discoveries “filled to spill”,
their recoverable resources are close to the P1/P10 oil in place volumes.
Assuming a P10 oil in-place volume for the Jade prospect increases our
unrisked valuation from an estimated c83.7p to c135.7p. BUY.
then there's the 'Topaz' prospect that is twice the size 'jade',
then there's Duyung that estimated to be worth in excess of 6p alone, so at 7.5p EME is currently extremely good value, and the market is clearly acknowledging this.
Obstando, i was looking for info, I was called simple, told do DYOR, accused of having an agenda, I reacted to being spoken to like a c$nt, I asked the guy politely to not engage with me any further and I was then booted. yes some guys guys were giving feedback which i was appreciative of but a few ringleaders were completely out of order
Thanks keepdreaming, fingers crossed a change of sentiment after the AGM and back up to 60p in jig time, I also don't think the bull**** in the tg is nice to see and offputting to potential investors, that also needs sorting out