Empyrean Decides To Move Along With Topaz Drilling

Empyrean Decides To Move Along With Topaz Drilling
Empyrean Energy has decided to enter the second phase of exploration and drilling of the Topaz prospect offshore China.

Empyrean Energy has decided to enter the second phase of exploration and drilling of the Topaz prospect at its 100-percent owned Block 29/11 permit, offshore China.

In the event of a commercial discovery, Empyrean’s partner CNOOC may assume a 51 percent participating interest in the development and production phase. The second phase of exploration requires the payment to CNOOC of $250,000 and the work obligation is the drilling of an exploration well within 2 years.

Empyrean said that a comprehensive post-well analysis confirmed the Jade well carbonate reservoir parameters are better than pre-drill estimates. Also, the Jade well penetrated thick and effective regional seal facies and the reservoir top was encountered within the depth conversion range. These parameters can now be more confidently mapped across Empyrean's 3D data set.

As a result, the reservoir, seal, and trap validity of the Topaz prospect has been enhanced by the Jade well data.

As a part of the post-well evaluation, CNOOC geochemical and basin modeling experts provided excellent in assessing the critical elements of effective regional oil migration pathways, leading to positive implications for the Topaz prospect.

Based on several oil discoveries in the area, CNOOC has identified the following three key elements for effective regional oil migration – a deep sag for oil generation, a deep fault for efficient vertical migration that has reactivated at the peak time of oil expulsion (10Ma), and a carrier bed for lateral migration to the prospect

Implications for the Topaz Prospect

Post-well evaluation indicates the Topaz prospect has the potential for oil charge from two kitchen/source rocks – the more recently identified Baiyun North Sag and the Baiyun East Sag that has been bio-marked as the proven source rock for CNOOC light oil discoveries to the immediate West of Block 29/11.

At the same time, the gas shows within the "gas cloud" zone in the overburden at the Jade well are now interpreted to have migrated from Baiyun North Sag via reactivation of a nearby fault rather than coming from basinal faults extending into Baiyun East Sag.

The identification of this nearby fault that extends into the Baiyun North Sag is now the most likely explanation for the gas shows in the Jade well. This interpretation enhances the prospects of Baiyun North Sag as a potentially valid additional source rock and, in turn, the likelihood of the Topaz prospect having access to two mature source rocks/kitchens.

Additionally, a CNOOC regional migration map indicates that Topaz has the potential for being charged from the proven Baiyun East Sag via spill from the CNOOC discovery well LH 23-1d.

"Being able to combine our excellent quality 3D seismic data with the confirmed well data and post well analysis has improved the validity of the Topaz prospect as a robust and large drilling target of approximately 891 million barrels in place (P10),” Empyrean CEO Tom Kelly said.

“Empyrean looks forward to maximizing the value from its interest in the Mako Gas Field and positioning to drill the exciting Topaz prospect. Empyrean has also started to assess several additional oil and gas projects that it believes may enhance a balanced portfolio of opportunity and will update shareholders as required," he added.

To contact the author, email bojan.lepic@rigzone.com


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