Empyrean Energy raises Jade Prospect chances to 65%

Empyrean Energy shares were up 13.7% to 11.6p in late afternoon trading on Tuesday following reports of elevated methane levels from its Jade Prospect in China, indicating the presence of light oil.

Empyrean Energy subsequently updated its internal Geological Chance of Success to 65% from 41%, with a 47% rise from 35% for its Topaz prospect.

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The company confirmed that higher values of methane ranging from 4190ppm to 15440ppm were recorded in the pre-drill interpreted “gas cloud” zone between 1550 metres to 1800 metres measurement difference.

The oil and gas exploration group commented that the results validated its pre-drill interpretation of seismic data encompassing the presence of gas clouds over the Jade prospect, alongside the firm’s Topaz prospect.

Empyrean Energy said that any oil discovered would likely be light oil in the 38-41 API range, in line with discoveries from nearby projects.

The Jade prospect was spudded after its 2 April drilling date was delayed due to bad weather and volatile sea wave conditions on 10 April, however the drilling programme is now reportedly on schedule to deliver results to shareholders on the company’s timeframe.

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“The first technical objective of the Jade well has now been drilled,” said Empyrean Energy CEO Tom Kelly in a statement.

“The validation of “gas clouds” through the presence of elevated methane levels in exactly the depth zone we interpreted on the excellent quality seismic data proves that the gas clouds exist and supports the Company’s pre-drill interpretation that the methane is probably coming from light oil in the anticipated reservoir section.”

“This is a major box now ticked, if we are to make a light oil discovery at Jade. The comparisons to nearby CNOOC discovery wells look very compelling. Drilling operations continue to run smoothly and safely, with progress to date right on schedule”.

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