from Research note17 Dec 2021 08:02
Empyrean Energy Plc Fully Funded High Impact Drilling Empyrean has secured funding of £7.623m through an equity placing and convertible loan note issue, fully funding the cost of the Jade exploration well (on a dry hole basis), which is scheduled to be drilled in late December 2021. The Jade exploration well is one of most exciting offshore wells to be drilled by a junior oil and gas company in 2021, targeting mean oil in place volumes of 225mmbbls and a P10 in place upside of 395mmbbls. The Jade prospect is the first of three identified prospects within Block 29/11, with the three prospects having a combined mean in place volume of 884mmbbls and a P10 in place upside of 1,588mmbbls. Success as Jade would significantly de-risk the 659mmbbls of oil in place at the Topaz and Pearl prospects and lead to an estimated c3.8x increase in our risked valuation to 43.4p. Unrisked, we value the P mean resources at Jade at c96.4p.