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Empyrean Energy completes offshore oil migration study in China
Oil and gas firm Empyrean Energy on Monday completed an oil migration study for offshore China Block 29/11, a site with potential pathways into the Jade, Topaz and Pearl prospects.
The AIM-traded company said the study identified the maturity profile of source rock and confirmed its peak maturity when oil expulsion began, thus resulting in positive prospectivity as the entire rock has been noted to have produced hydrocarbons.
Tom Kelly, chief executive of Empyrean Energy, said: "Interpretation of the potential effective migration pathways from the established kitchen area - Baiyun Sag East - as well as from the new kitchen area - Baiyun Sag North - into Block 29/11 helps increase our overall understanding of the geology of the block and the Jade and Topaz prospects in particular. The additional work has also confirmed a potential oil migration pathway from the Liuhua 11-1 field complex to the Pearl prospect."
Furthermore, the study interpreted oil migration pathways from oil sources of the Enping Formation within the Baiyun Sag East basin into the west and south of Block 29/11 since 2010, and further pathways to the northern flank of the Baiyun uplift at the Jade and Topaz prospects.
The company said potential fill-and-spill pathways to the jade prospect have also been confirmed by 28 square kilometres of seismic data.
"We have been rigorous with the pre-drill subsurface data and exploration tools available to us and we believe that the detailed and comprehensive technical work we have completed to date significantly reduces the geological risks to a point where we have established excellent drilling targets that are of significant size with relatively low geological risk," said Kelly.
The company's study was supported by geoscientists from the Shenzhen branch of China National Offshore Oil Corporation, who shared the comprehensive viewpoints of their previous study in this area.
As of 1453 BST, Empyrean Energy's shares were down 2.33% at 9.43p.