Empyrean Energy : Gaffney Cline & Associates review of Oil in-place Estimates completed for Prospects in Block 29/11, Pearl River Mouth Basin, offshore China

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Empyrean Energy PLC - EME Independent Oil in-place Estimates for Block 29/11 Released 07:30 09-Nov-2018

RNS Number : 8893G

Empyrean Energy PLC 09 November 2018

This announcement contains inside informa�on

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

9 November 2018

Empyrean Energy PLC ("Empyrean" or the "Company")

Gaffney Cline & Associates review of Oil in-place Es�mates completed for Prospects in Block 29/11,

Pearl River Mouth Basin, offshore China

Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that Gaffney, Cline & Associates ("GCA"), an independent petroleum advisory firm, has completed its independent audit of the Company's oil ini�ally in place es�mates over the Jade, Topaz and Pearl prospects iden�fied in Block 29/11, Pearl River Mouth Basin, offshore China, in which the Company has a 100% working interest (the "STOIIP Audit") .

Highlights

• · Total Mean Oil in-place increased 9% to 884 MMbbl from 814 MMbbl on an un-risked basis

• · GCA's es�mates of Geological Chance of Success of Jade and Topaz prospects is 32% and 30% respec�vely

• · The independent assessment validates the Company's internal es�mates announced in

  June 2018

• · The total P10 es�mates increased 47% to 1588 MMbbl from 1081 MMbbl on an un-risked basis

EME requested that GCA undertake the STOIIP Audit and an assessment of the geological chance of success ("GCoS") of the three prospects iden�fied on Block 29/11 following comprehensive internal processing and interpreta�on of the 608km2 of 3D seismic data that the Company successfully acquired in 2017. The Company completed this ini�al internal exercise in respect of processed data in June 2018 using both internal technical capabili�es, provided by experienced geoscien�st, Gaz Bisht, and an addi�onal expert consultant geophysicist, with the results announced on 6 June 2018 (shown in Table 1 below).

GCA's audit primarily consisted of reviewing, checking and valida�ng the available data and exis�ng interpreta�ons and audi�ng the technical work that has been performed by EME and its contractors.

GCA used a probabilis�c method to generate its results and es�mated the STOIIP using a 1D Monte Carlo model based on es�mates of gross rock volume and reservoir parameters. GCA's es�mates of STOIIP for the Jade, Topaz and Pearl Prospects together with GCA's es�mates of GCoS are shown in Table 1 below.

Table 1: EME and GCA es�mates of STOIIP (November 2018)

EME Internal Es�mate

Block 29/11 China: Oil in-place MMbbl

June 2018

GCA STOIIP Audit November 2018

Prospect	P90	P50	P10	Mean	P90	P50	P10	Mean	GCoS
Jade	110	183	230	202	93	187	395	225	32%
Topaz	298	431	631	453	211	434	891	506	30%
Pearl	105	152	220	159	38	121	302	153	15%

Empyrean CEO Tom Kelly commented, "The independent review of three prospects, recently undertaken by GCA, is very encouraging and supports the work undertaken internally by Empyrean. It is par�cularly pleasing to see that the Jade and Topaz prospects are expected to have close to a 1-in-3 chance of geological success and over a billion barrels of poten�al oil in-place, combined, on a P10 basis un-risked. By industry standards, these numbers are excellent. The work done by GCA certainly supports Empyrean's view on the poten�al size and a�rac�veness of these prospects. We are excited by the increased poten�al of Block 29/11 and of the a�rac�ve GCoS of our two main prospects, in par�cular. We made a determined effort to secure Block 29/11 in 2016 and have made a significant investment and commitment. It is pleasing to see independent expert valida�on of a major component of our work so far as we work towards unlocking value for our shareholders."

Cau�onary Statement: The volumes presented in this announcement are STOIIP es�mates only. A recovery factor needs to be applied to the undiscovered STOIIP es�mates based on the applica�on of a future development project. The subsequent es�mates, post the applica�on of a recovery factor, will have both an associated risk of discovery and a risk of development.

Further explora�on, appraisal and evalua�on is required to determine the existence of a significant quan�ty of poten�ally movable hydrocarbons.

**ENDS**

For further informa�on:

Empyrean Energy plc

Tom Kelly

Tel: [phone]

Cenkos Securi�es plc Neil McDonald

Tel: [phone]

Beth McKiernan

Tel: [phone]

St Brides Partners Ltd Lo�e Wadham

Tel: [phone]

Frank Buhagiar

Tel: [phone]

The informa�on contained in this announcement was completed and reviewed by the Company's Execu�ve Director (Technical) , Mr Gajendra (Gaz) Bisht, who has over 29 years' experience as a petroleum geoscien�st.

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END

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