 announced the 'significant shows' of gas at its Dempsey 1-15 well in Sacramento, California, causing shares to rally on Wednesday.){kind=link}
Empyrean Energy (LON:EME) announced the ‘significant shows’ of gas at its Dempsey 1-15 well in Sacramento, California, causing shares to rally on Wednesday.
The oil and gas exploration company announced that its drilling activities in the region have uncovered significantly more background gas than previously expected.
In a trading update to investors, the company noted that the best zone of gas shows had a gas level of over 500 times the background gas.
Empyrean said the Dempsey 1-15 well was currently drilling ahead at 2,182 m to the under-explored deeper targeted reservoirs in the remaining 890 m of section to be drilled.
In the statement, the company stated that:
“The significance of these shows will become more apparent when the next wireline logs are run to more fully evaluate the intersected gas shows and reservoirs.”
This is set to be explored after reaching a previously suggested total drilling depth of approximately 3,200 metres.
Empyrean Chief Executive Tom Kelly commented on the update:
“The improved quality of sands appearing in these latest unexpected zones of significant gas shows is encouraging. Drilling is in sight and we will keep our shareholders appraised of further significant developments.”
He added: “From a technical viewpoint we are once again encouraged to see gas shows in zones that the pre-drill prognosis predicted would be interesting.
With regards to future developments on the drill, “We look forward to providing further updates as drilling progresses.”
The company confirmed that the announcement had been reviewed by Empyrean’s Technical Director, Mr Frank Brophy, who has sustained in excess of 40 years experience as a petroleum geologist.
Empyrean Energy is a oil and gas development company listed on the London AIM market, with interests spanning China, Indonesia and the United States.
Alongside its Dempsey Well in California, its projects include Riverbend in Texas and Eagle Oil in California.
Amid the announcement, shares in the company are currently up 10.42 percent as of 11.25AM.