EME – Commercial Gas Flows From Dempsey; Test rate of 1 million cubic feet gas per day from a field level Kione Sandstone interval

8 May, 2018 – Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has been informed by Sacgasco Limited (ASX: SGC) (“Sacgasco”), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that flow-testing of the Dempsey 1-15 well from the field level Kione Zone has produced a commercial gas flow rate of 1 million cubic feet of gas (1,000 Mcf/day). Empyrean has a 30% working interest in the Dempsey 1-15 well. The flow rate is very encouraging as it is water free natural gas flowing through a 12/64″ choke with flowing tubing pressure of 1140 PSI, and surface shut-in pressure exceeding 1300 PSI.
 
Operational considerations meant that perforating the Kione Zone ahead of Zone 4 would deliver significant benefits for the perforating of Zone 4 sands. Zone 4 testing preparations are underway. After testing Zone 4 Sacgasco plans to combine production from all flowing tested zones in the Dempsey 1-15 well; and anticipates very early cash flow due to the gas sales infrastructure that is connected to the Dempsey well. 
 
Sacgasco previously announced four gas saturated sand intervals at the field production level at Dempsey. The tested zone referred to above is just one of those reported zones. Other intervals may be perforated at a future date, should piping configurations allow. Options for testing of various other intervals in the Dempsey Well bore are being maintained.
 
It is anticipated that a flow rate from all combined zones will be announced by the operator in due course.
 
Empyrean CEO Tom Kelly commented, “A commercial gas flow from this particular Kione sand is positive news for the Dempsey Well and the JV partners. With preparations underway to test Zone 4 and adding any resulting gas flows together with flows from all zones tested to date, Dempsey is shaping up to provide the JV with early cash flow. Infrastructure connected to the well will expedite the timeframe from discovery to gas sales and cashflow. The JV is retaining plenty of flexibility with regards to future testing and production alternatives.”
 
Full announcement at www.empyreanenergy.com