EME – Applications submitted to commence operations at Alvarez well

Empyrean Energy is pleased to announce its final results for the year ended 31 March 2018.  The full Report and Accounts will be made available on the Company’s website in the coming days.

HIGHLIGHTS

Reporting Period

Block 29/11, Pearl River Mouth Basin, China (EME 100%)

·     580km2 3D seismic survey successfully completed in August 2017;

·     Interpretation of onboard processed seismic data confirmed structural validity of Jade and Topaz prospects within Block 29/11;

·     Third significant target identified named “Pearl”, located north of the Topaz prospect within Block 29/11; and

·     Total Preliminary Prospective Resources (Best) Estimate of 591 MMbbl from Jade, Topaz and Pearl prospects.

Duyung PSC Project, Indonesia (EME 10%)

·     Secured a 10% interest in the Duyung PSC, offshore Indonesia, in April 2017;

·     Mako South-1 well was drilled to a total depth of 1,707 feet and the drilling and testing operations were completed in June 2017;

·     Mako South-1 well results exceeded expectations encountering excellent reservoir quality, gas saturation, porosity, permeability and flow rates; and

·     Mako South-1 well flowed at a stabilised rate of 10.9 cubic feet of gas per day with multi Darcy permeability.

Sacramento Basin, California USA (EME 25-30%)

·     Negotiated a 25-30% working interest in the Northern Sacramento Basin package of gas projects;

·     Northern Sacramento Basin projects includes the Dempsey and Alvarez prospects plus a Dempsey Trend AMI with multiple targets;

·     Dempsey 1-15 well spudded in August 2017 and reached total depth of 9,747 feet; and

·     Wireline logs confirmed numerous potential gas bearing zones. Comprehensive production testing commenced in November 2017.

Post reporting period

Block 29/11, Pearl River Mouth Basin, China (EME 100%)

·     Based on comprehensive seismic interpretation of fully processed 3D data, 31% uplift in best case Prospective (Un-risked) Resources from 591 MMbbl to 774 MMbbl in Jade, Topaz and Pearl prospects announced in June 2018; and

·     Detailed Oil Migration Study completed in June 2018. The study helped interpret effective oil migration pathways into the Jade, Topaz and Pearl prospects from proven hydrocarbon kitchen sags.

Duyung PSC Project, Indonesia (EME 10%)

·     The operator, Conrad Petroleum, made significant progress with completion of detailed and comprehensive technical studies by incorporating all the sub-surface data collected in the discovery well;

·     In addition, substantial commercial and facilities studies have been completed as a part of the Plan of Development (‘POD’);

·     POD, including reserves certification, submitted to Indonesian regulator SKKMigas in August 2018; and

·     Heads of Agreement signed with regional utility for sale of Mako gas.

Sacramento Basin, California USA (EME 25-30%)

·     The JV discussed and agreed to conduct a comprehensive testing operation. A total of three zones (Zone 2, 3, and 4) were high-graded for testing in the well;

·     Comprehensive data was collected to understand the key parameters (porosity and permeability) of the reservoir;

·     Commercial Gas Flows from combined zones commenced at Dempsey at ~ 1,300 mcf per day;

·     JV now undertaking further subsurface work to assess the prospectivity of other opportunities along the Dempsey trend in light of the results of Dempsey 1-15;

·     Cash flow from production at Dempsey commenced in July 2018; and

·     Applications submitted to commence operations at Alvarez well.

Empyrean CEO Tom Kelly said, “After the sale of our interest in the Sugarloaf AMI in Texas in 2016, Empyrean has successfully reconstructed the Company through a series of strategic acquisitions and the Company now holds an exciting portfolio of exploration projects in China, Indonesia and the USA.

“The Company has actively worked with the operators to make substantial progress in each project during the year. As a result, we have made a discovery in Indonesia; proven commercial gas in the Sacramento Basin (Dempsey 1-15) in California; and successfully completed the acquisition, processing and interpretation of a large 3D survey over the key prospects in China.

“We expect that work over the remainder of the calendar year will continue to add significant value for the Company and its shareholders through the focused advancement of these projects.”