Empyrean Energy has been awarded a permit for 100% of the exploration rights for Block 29/11, located in the Pearl River Mouth Basin (PRMB), offshore China, following a successful application to the China National Offshore Oil Corp. Empyrean will be the operator during the exploration phase of the permit.
The permit is located approximately 200km Southeast from Hong Kong in water depths ranging from 340-600m. Two key exploration prospects, Jade and Topaz, have already been mapped within the permit area with multi-vintage 2D seismic, which the company intends to acquire to establish the resources attributable to these prospects.
Recent discoveries immediately to the west and south of the permit are also on trend and enhance the prospectivity of the permit. Furthermore, an additional ten leads have been mapped on the permit area, which will require follow up exploration work in order to mature.
"To have been granted a permit of this size and located on trend to existing large discoveries is a real coup for the company,” said Tom Kelly, CEO, Empyrean. “The permit represents a fantastic opportunity for Empyrean, given its significant resource potential and the presence of two large and relatively mature drilling prospects, Jade and Topaz. Therefore, we look forward to advancing these, as well as additional targets identified, alongside Gaz Bisht (independent consultant and owner of Topaz Energy), who has a very thorough understanding of the region via his previous extensive work in the region."
The successful bid proposal has been structured in two separate parts, initially a geophysical service agreement, which requires the company to acquire and complete processing and technical evaluation of 500sq km of 3D seismic data on the permit area, and, subsequently, the company having an option to enter into a pre-negotiated production sharing contract. The work program required for the first 24 months is anticipated to be funded by the company's existing cash resources.
Empyrean anticipates that the permit will become the priority focus in order to reposition the company for growth. Accordingly, the company will seek to farmout or sell its remaining US assets.