NATURAL GAS SALES COMMENCE AT DEMPSEY
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 Dempsey 1-15 well is flowing natural gas to sales pipelines at a combined rate of 1,300 mcf per day. Dempsey 1-15 is producing gas from Ranch Capay Field Level Kione Sandstone and the combined older Zones 2, 3 and 4.
Gas from all four producing zones has been assessed to be of pipeline quality.
Sacgasco has set the Dempsey well up for production to enable reservoir assessment as the basis for further development activities from the various production levels. This information will be integrated with geology and seismic to evaluate more production options, including reservoir production enhancement through fracture stimulation, and alternative deviated well configurations.
Sacgasco is also advancing with the connection of a number of other idle wells into the sales gas system in the Dempsey area that are hoped to add to production and cash flow.
Empyrean CEO Tom Kelly commented, “We are pleased that quality natural gas is now being sold from Dempsey, bringing cash flow for the JV partners in the Dempsey Gas Project. The expectation is that the connection of other wells in the area will add to this production and cash flow. This is a really positive development for the Dempsey JV partners and we can now look forward to using the production data to help with development opportunities for our discovered gas zones. We also look forward to providing an update on the Alvares appraisal as planning progresses.”