JAKARTA (TheInsiderStories) – Empyrean Energy Plc, the oil and gas development company based in Australia announce that the Indonesia’ Energy and Minerals Resources ministry has approved the plan of development (POD) for the Mako Gas Field at the Duyung Production Sharing Contract (PSC) in Indonesia.
Empyrean has a 10 percent interest in West Natuna Exploration Limited that holds 100 percent of the Duyung PSC in Natuna offshore.
“Tenure has now been secured on the Duyung PSC out to 2037 which reduces risk and adds intrinsic value to the project,” said Tom Kelly, CEO of Empyrean in a written statement released on Monday (03/11).
He continued, the POD approval is also crucial to advancing negotiations of the heads of agreement into a gas sales agreement with the buyer in Singapore for the off-take of Mako gas. Kelly added, “It also paves the way for appraisal later in the year that can increase resources at Mako and hopefully test the deeper Tambak prospect.”
On Feb. 22, British’ energy producer, Coro Energy Plc announced to acquire 15 percent participating interest in the Duyung PSC, which contains the Mako gas field, located in West Natuna Basin.
The Duyung PSC is 100 percent owned and operated by West Natuna Exploration. The operator shareholders consist of Singapore’ Conrad Petroleum (90 percent) and Empyrean Energy (10 percent).
James Menzies, Chief Executive Officer said in a written statement, the company was signed a binding conditional agreement with West Natuna Exploration. Under the agreement, Coro Energy will pay a cash and shares consideration of US$4.8 million and contribute $10.5 million toward the 2019 drilling campaign, in order to earn a 15 percent stake in the Duyung PSC. The values representing an effective acquisition price of $0.34 per MMBtu.
The Duyung PSC covers an offshore permit of approximately 1,100 square kilometers in the prolific West Natuna Basin. The main asset in the block is the Mako shallow gas discovery.
Empyrean participated in the appraisal well Mako South-1 in June 2017. The well was drilled using a jackup rig located in water depths of 308 ft. The well reached a TD of 1,707 ft on 22 June 2017.
The Mako South-1 well exceeded the Company’s expectations encountering excellent reservoir quality rock with high permeability sands in the multi Darcy range with 23 feet of gas bearing reservoir. This zone flowed gas at a stabilized rate of 10.9 million cubic feet per day.
The Duyung PSC covers approximately 890 square kilometers in the Riau Islands Province, situated in the offshore Indonesian waters of the South China Sea, and is proximal to the West Natuna Transportation System, a gas pipeline to markets in Singapore. The block currently supplies approximately 0.4 billion feets of natural gas per day to Singapore.
Empyrean is a London AIM listed oil and gas explorer focused on three cornerstone assets with transformational potential: Block 29/11 offshore China, the Duyung PSC offshore Indonesia and a multi project participating interest in the Sacramento Basin, California.
by Linda Silaen, Email: firstname.lastname@example.org