COSL-owned NH9 semi-submersible rig has arrived on location at the Empyrean's Jade prospect offshore China, in preparation for the long-awaited drilling start.
The drilling operation will target what Empyrean says is "a world-class" conventional oil target in the Jade Prospect, to which Gaffney Cline & Associates ("GCA") assigned a Geological Chance of Success ("GCoS") of 32%.
Following the GCA assessment, Empyrean completed a gas cloud study and post stack seismic inversion study that it believes further mitigates risk and increases the GCoS to 41%.
The Jade Prospect has a GCA audited mean in place potential of 225 MMbbl and a P10 in place upside of 395 MMbbl.
Empyrean said Friday that operations to anchor the rig on location had started with the spudding of LH 17-2-1 well over Jade Prospect anticipated to start around April 10.
NH9 (Nanhai 9) is a semi-submersible drilling rig that entered service in 1988. It is capable of drilling in a water depth of up to 5300 feet (1615 meters).
Empyrean operated the Block 29/11 where the well is located with a 100% stake during the exploration phase. In case of a commercial discovery, China National Offshore Oil Company ("CNOOC"), may assume a 51% participating interest in the development and production phase.
Empyrean CEO, Tom Kelly, stated: "Towing operations have unfolded a little quicker than we expected and we are now counting down the hours until we spud one of the highest potential impact and eagerly anticipated wells of 2022.
"We look forward to providing updates as the drilling starts and further progress is made. It is no mean feat that Empyrean, guided by Executive Technical Director -Gaz Bisht, was awarded the Block 29/11 permit, successfully carried out 608km2 of 3D seismic, conducted oil migration studies, gas cloud studies, and seismic inversion studies, and is now about to drill a 395 million barrel potential in place conventional light oil target at Jade."
After any potential success at the Jade prospect, Empyrean said it would like to drill the larger Topaz prospect. The Topaz prospect has GCA audited mean in place potential of 434 MMbbl and a P10 in place upside of 891 MMbbl.
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