Empyrean Energy : Petroleum Contract for Block 29/11 Signed

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Empyrean Energy PLC - EME Petroleum Contract for Block 29/11 signed Released 08:40 01-Oct-2018

RNS Number : 4848C

Empyrean Energy PLC 01 October 2018

This announcement contains inside informa�on

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

01 October 2018

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

Petroleum Contract for Block 29/11 signed

Empyrean Energy (EME: AIM), the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has signed the Petroleum Contract ("PSC") with CNOOC for Block 29/11 on 30 September 2018. The date of Commencement of the Implementa�on of the PSC is 13 December 2018. The first phase of contract ('Phase 1') is for 2.5 years with a commitment to drill one explora�on well to a depth of 2,500m or to the Basement Forma�on. The Company has a 100% working interest.

Upon a commercial discovery CNOOC has the right to par�cipate in up to 51% working interest.

EME had entered into a Geophysical Service Agreement (GSA) with CNOOC on 13 December 2016 and successfully completed the work program required under the GSA phase ahead of the required �meframe. The GSA en�tled Empyrean an op�on to subsequently enter into the PSC on pre-agreed terms.

3D seismic data acquired under the GSA commitment, helped mature three material size prospects. Following a comprehensive oil migra�on study, the Jade and Topaz prospects are now considered high priority and drill ready. The following table shows the Company's internal assessment of prospec�ve resources, that are currently being independently assessed by expert consultants, Gaffney Cline and Associates.

Block 29/11, China

EME Gross Prospec�ve (un-risked) Resources MMbbl*

Under the PSC, EME has the op�on of entering Phase 2 a�er relinquishing 25% of the current area. Phase 2 has a commitment of drilling one addi�onal explora�on well to a depth of 2,500m or to the Basement Forma�on within a further 2-year �meframe.

Empyrean CEO Tom Kelly commented, "Entering into the PSC marks an important milestone for the Company with regards Block 29/11. Tenure is now secured on Block 29/11 for 2.5 years. We are looking forward to drilling one of the exci�ng, poten�ally company transforma�onal prospects that we have iden�fied via the recently acquired 3D seismic. Alterna�ves for drilling our first well on Block 29/11 within the 2.5 year �me frame are open, with farm-out, sale of an asset or alterna�ve fund raising all being considered."

This report has been reviewed by Empyrean's Execu�ve Technical director, Gaz Bisht, who has over 29 years' experience as a hydrocarbon geologist and geoscien�st.

**ENDS**

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END

Prospect	Low Case	Best Case	High Case
Jade	110	183	320
Topaz	298	431	631
Pearl	105	152	220

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]

MSCUAOBRWBARRRA

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Petroleum Contract for Block 29/11 signed - RNS