Business
Increased interest in Sacramento Basin Projects
Increased interest in Sacramento Basin Projects.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6929I Empyrean Energy PLC 21 June 2017 \n\nThis announcement contains inside information\n \nEmpyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas\n21 June 2017\nEmpyrean Energy PLC (\"Empyrean\" or the \"Company\")\n \nIncreased interest in Multi Project Farm-In in Sacramento Basin, California\n \n· Empyrean reaches agreement to increase its interest in the Sacramento Basin package of projects on the following basis:\no Increase from 25% to 30% of Dempsey Prospect, targeting 1 Tcf conventional gas, to be drilled Q3 2017\no Increase from 10% to 25% of Alvares Appraisal Prospect, targeting 2 Tcf gas\no Increase from 25% to 30% of Dempsey Trend AMI, including at least three large Dempsey style follow up prospects\n· The increased interest being acquired is fully funded through the drilling of the Dempsey-1 Well\n \nEmpyrean is pleased to announce that it has entered into a new agreement with Sacgasco Limited (ASX: SGC) (\"Sacgasco\"), to increase Empyrean's interest in the package of gas projects in the Sacramento Basin, onshore California (the \"Farm-In\"), previously announced on 15 May 2017 and amended on 16 June 2017. Empyrean will use part of the placing proceeds of £660,000 announced on 20 June 2017 and pre-existing cash to pay entirely for the increased interest through to the drilling of the Dempsey-1 Well which is anticipated to commence in Q3 2017.\n \nDempsey\n \nUnder the new agreement with Sacgasco, Empyrean is to pay a further US$90,000 having already paid an amount of US$10,000, (collectively \"the Dempsey Deposit\"), within three working days of signing a definitive Farm-out Agreement (the \"Farm-Out Agreement\") and Joint Operating Agreement (\"JOA\") with Sacgasco in order to secure Empyrean's right to participate in the Dempsey Prospect. Empyrean is then required to pay US$2,000,000 upon being cash called by Sacgasco (the \"Dempsey Consideration\") towards the dry hole cost (i.e. up to the point of testing and running production casing or abandonment) of the Dempsey-1 Well to earn its increased 30% Working Interest (\"WI\") in the Dempsey Prospect. If the Dempsey-1 well costs exceed US$3,200,000 then Empyrean will pay 30% of any further costs under standard JOA terms.\n&nbs...