AIM-listed Empyrean Energy, the oil and gas development company with interests in China, Indonesia and the United States, has announced that Gaffney, Cline & Associates ('GCA'), an independent petroleum advisory firm, has completed its independent audit of the Company's oil initially in place estimates over the Jade, Topaz and Pearl prospects identified in Block 29/11, Pearl River Mouth Basin, offshore China, in which the Company has a 100% working interest (the 'STOIIP Audit').
EME requested that GCA undertake the STOIIP Audit and an assessment of the geological chance of success ('GCoS') of the three prospects identified on Block 29/11 following comprehensive internal processing and interpretation of the 608km2 of 3D seismic data that the Company successfully acquired in 2017. The Company completed this initial internal exercise in respect of processed data in June 2018 using both internal technical capabilities, provided by experienced geoscientist, Gaz Bisht, and an additional expert consultant geophysicist, with the results announced on 6 June 2018.
GCA's audit primarily consisted of reviewing, checking and validating the available data and existing interpretations and auditing the technical work that has been performed by EME and its contractors.
GCA used a probabilistic method to generate its results and estimated the STOIIP using a 1D Monte Carlo model based on estimates of gross rock volume and reservoir parameters. GCA's estimates of STOIIP for the Jade, Topaz and Pearl Prospects together with GCA's estimates of GCoS are shown in Table 1 below.
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 particularly 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 potential 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 potential size and attractiveness of these prospects. We are excited by the increased potential of Block 29/11 and of the attractive GCoS of our two main prospects, in particular. 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 validation of a major component of our work so far as we work towards unlocking value for our shareholders.'