23rd May 2018 14:57
LONDON (Alliance News) - Empyrean Energy PLC said Wednesday it is expecting its well in the Sacramento Basin to start producing gas "very shortly".
The Dempsey Gas project - which Empyrean has a 30% working interest in - is anticipated to produce 1,200 million cubic feet of gas per day. As a result, Empyrean expects to be generating cash flow "very shortly".
Sagrasco Ltd, the operator of the Dempsey 1-15 well also plans to connect four idle wells into the gas system in the Dempsey area that are "hoped" will add production and cash flow.
An application has also been submitted to the regulator to permit re-entry to the Alvares 1 wellbore. The assessment of the integrity of the well bore as the basis for a decision to either log through casing and perforate, or alternatively drill a sidetrack well will begin in the third quarter of 2018.
Shares in Empyrean Energy were down 16% to 10.71 pence each Wednesday.
Chief Executive Officer Tom Kelly said: "Thanks to the close proximity of existing infrastructure owned by the joint venture, the Dempsey Well can be connected to the sales pipeline in an expedited timeframe. With production of commercial gas flows at about 1,200 million cubic feet of gas per day imminent, we look forward to reaping the benefit from this early cash flow as one of the joint venture partners with a 30% working interest. Additionally, there is significant upside potential from nearby wells where plans are in place to connect four idle wells into the grid to further increase production and cash flow. We also look forward to providing further updates on the Alvares 1 wellbore, where Sacgasco is planning to commence activities in the third quarter of 2018."
Related Shares:
Empyrean