Empyrean Energy plc (Empyrean), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce an upgrade of resource estimates for the Mako gas field, which forms part of Duyung PSC in the West Natuna basin, offshore Indonesia (the "Mako gas field"). The resource update has been prepared internally by the operator of the Mako gas field, Conrad Petroleum Ltd (Conrad), and follows a highly successful appraisal drilling campaign in Q4 2019 at the Mako gas field, which saw the Tambak-1 and Tambak-2 wells demonstrate the presence of well-developed, high quality reservoir sandstones with a common gas water contact across the Mako structure. A previous, post-discovery and pre-appraisal drilling, independent resource assessment was completed by Gaffney Cline & Associates ("GCA") and released in January 2019 (the "2019 GCA Assessment").
The partners in the Duyung PSC are Conrad (76.5%), Coro Energy plc (15%) and Empyrean (8.5%) (together the "Duyung PSC Partners")
· Gross (full field) 1C (Contingent) Resource estimate of 323 Bcf of recoverable raw gas, representing an increase of 76% on the pre appraisal estimate of 184 Bcf in the 2019 GCA Assessment
· Gross (full field) 2C (Contingent) Resource estimate of 493 Bcf of recoverable raw gas, representing an increase of 79% on the pre appraisal estimate of 276 Bcf in the 2019 GCA Assessment
· Gross (full field) 3C (Contingent) Resource estimate of 666 Bcf of recoverable raw gas, representing an increase of 70% on the pre appraisal estimate of 392 Bcf in the 2019 GCA Assessment
· Appraisal drilling in Q4 2019 confirmed the presence of thicker and better quality reservoir with a gas water contact measured (from electric logs) to be 5 ft deeper than previous contact that was estimated from pressure data
· Revised development scenarios are under review that may be able to achieve a plateau production rate of 150 MMscf/d, which is up from the previously modelled 44 MMscf/d
Tom Kelly, CEO of Empyrean, commented:
"The success of the appraisal drilling program at the Mako gas field last December has resulted in an outstanding uplift in contingent resources across all categories. The implications of a thicker and better quality reservoir with a gas water contact 5 ft deeper than previously assumed has not only been the driver for the resource uplift but has also had a particularly positive impact on potential development scenarios with up to a 150MMscf/d plateau production rate now being modelled. Obviously, we are in an extremely challenging macro environment; however, we are extremely pleased to see that the fundamental technical aspects of this project have, with excellent planning and a very well thought out and executed appraisal drilling program, become more robust. Despite global oil prices being significantly depressed, it is worth noting that this project is high quality methane gas that will ultimately be supplied to the Singapore/ Indonesia region where the longer term demand for energy and in particular methane gas is forecast to grow. We look forward to updating shareholders on the Gaffney Cline report in due course ."