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Empyrean Energy to resume testing operations after well analysis
Oil and gas exploration company Empyrean Energy is due to resume testing operations on the Dempsey well in California later this month, the company said on Thursday.
Dempsey well operator Sacgasco Limited has given the green light for the commencement of further production testing following a review of existing results and data collected, leading to the creation of a new programme.
This revised programme will allow for earlier than previously planned testing of shallower zones with extensive gas shows and higher porosity which will preserve the opportunity for further testing and reservoir stimulation of all the well zones.
Tom Kelly, chief executive of Empyrean Energy, said: "We are delighted to have reached consensus on forward operations that allow imminent testing of further prospective zones whilst maintaining the flexibility to revisit any zone at a later date to produce, re-evaluate or stimulate if required. Shareholders should note that Empyrean believes that testing these zones higher up in the well before any plan to fracture stimulate a deeper zone (or any zone for that matter) may provide a better chance of commercial gas flows."
Sacgasco has performed technical analysis that indicates that zone 3 contains reservoir sands with exceptional porosity and positive seismic attributes that have been interpreted to reflect positive reservoir continuity and extent.
"Put simply, Empyrean supports the efforts being made by Sacgasco on the forward testing program and the stimulation application and reiterates that stimulation approval would not have been hastened by lodging the application earlier without the collected data and consultation process," said Kelly.
A draft application to stimulate zones in the well is near completion, according to Sacgasco, with the lodging of the application being part of the final process to achieve approval to stimulate.
As of 1537 GMT, Empyrean Energy's shares were down 2.26% at 11.87p.