Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has been informed by Sacgasco Limited (ASX: SGC) (“Sacgasco” or “the Operator”), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that perforating and flow-testing of the Dempsey 1-15 well is continuing as planned.
The second zone of gas shows in the well has been perforated and is in the process of being tested. This zone has flowed dry natural gas and no water and has confirmed initial shut-in pressures exceeding 6,000 psi. Further gathering of test data is required before the Operator has sufficient information to meet regulator guidelines on reporting results. Analysis of the potential of this zone is still at a very early stage.
No conclusions as to the potential commerciality of this zone can be drawn from this early testing.
The testing programme has followed good oilfield practise by beginning testing from the bottom of the well. These tests are not in order of interpreted potential based on quality of log and gas show response. The zone currently being tested is the second of multiple additional zones to test below the field production level reservoirs.
The test programme has also been carried out in a methodical and measured way to ensure safe outcomes. The Dempsey reservoirs are high pressure and the Operator is working in a considered fashion to ensure the best outcome for JV partners. Notably, the well activities include extensive exploration components that require the assessment of information from each operation as the basis of design for the following stage. This analysis between tests takes some time to ensure the Operator receives the maximum resource information in an efficient way.
While work is still ongoing on Dempsey, planning for a re-entry of the Alvares gas discovery well is progressing.
Since the last test update, the results of the gas quality from the first flow test of the lowermost zone in Dempsey 1-15 have confirmed clean gas of pipeline quality with a Higher Heating Value (HHV) better than the gas from the overlying field reservoirs in the Rancho Capay Gas Field.
Additional information on the Dempsey well will be provided as testing is carried out.
Empyrean CEO Tom Kelly commented, “We are at an early stage of testing the multiple zones of interest in the Dempsey well. We are happy with the measured and methodical approach that the Operator is taking to assess the gas reservoirs.”
This announcement has been reviewed by Empyrean's Technical Director, Mr Frank Brophy BSc (Hons), who has over 40 years experience as a petroleum geologist.
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