Empyrean Energy PLC (LON:EME), which last week told investors that a proposed exploration programme onshore California has been given the green-light, said today that the operator of the Depsey1-15 well has signed a drilling contract.
The AIM-listed oil and gas development company – which has interests in China, Indonesia and the United States - said it has been informed by Sacgasco Limited, the operator of the well in the Sacramento Basin, onshore California, that a drilling contract has been signed with Paul Graham Drilling.
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Empyrean has a 30% interest in the well, which is targeting a 1 trillion cubic feet-plus (tcf+) prospect within an already producing gas unit. The group said drilling operations are on track to commence in the coming weeks.
Tom Kelly, Empyrean’s CEO, said: "With the permit secured and the drilling contract signed we are excited for Dempsey 1-15 to be spud in the very near future as we look to prove up a substantial 1Tcf+ prospect.
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“The Well is strategically located within a gas unit from which Sacgasco is already producing and selling gas and so in the case of a discovery there would be an almost immediate tie-in to a 20mmcfgpd meter station.
“With this in mind, we look forward to providing further updates on Dempsey 1-15 in the coming weeks."
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