Dempsey Testing Update
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”), the operator of the Dempsey 1-15 well in the Sacramento Basin, onshore California, that the testing of Zone 3 in the Dempsey 1-15 well has resulted in a further flow of clean natural gas with the quality of the gas samples consistent with other zones. Zone 3 perforations flowed gas at 195 mcfpd on 16/64” choke with a FTP of 118 psi and no water. The well is currently shut-in to enable short-term pressure build up measurements.
The operator will now test a shallower gas filled reservoir zone (Zone 4) while maintaining access to the two deeper producing intervals (Zones 2 and 3), with the option to perforate and flow test gas filled reservoirs at the field production level.
The operator plans a dual completion to produce natural gas from the yet to be tested Zone 4, and previously tested Zones 2 and 3. Likely commercial gas flows from field production zones can also be tested shortly and may be produced along with gas from Zones 2 to 4. Aggregated gas flows from all of these zones can generate cash flow from the Dempsey well very quickly given the well is already tied into the production system.
Production data collected assists the Joint Venture in designing a forward development programme for the well and Dempsey Field to enhance overall production. There is considerable optionality to extract value from the Field, including fracture stimulation.
Empyrean CEO Tom Kelly commented, “Our Dempsey well continues to excite from a technical perspective and with surface production facilities owned by the JV in very close proximity to the well we remain confident that we can capitalise economically on any gas put into longer term production.”
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