Business
Participation in 10% of Aquar
Participation in 10% of Aquar.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n RNS Number : 1183E Empyrean Energy PLC 15 December 2009 \n15th December 2009\n\n\nEmpyrean Energy PLC\n('Empyrean' or the 'Company', (EME))\n\nAquarius Prospect, onshore Texas, USA.\n\n\n\nEmpyrean signs new participation agreement for 10% of the Aquarius Prospect.\n\n\nAquarius has a mean gross unrisked resource potential of 7.1 Billion cubic feet of gas equivalent.\n\n\nTurn-key drilling contract in place.\n\n\n\n\nEmpyrean Energy Plc is pleased to announce that it has signed a new participation agreement with Krescent Energy Company LLC (\"Krescent\") to participate in the drilling of the Aquarius Prospect in Tyler County, Texas. This new project is in addition to the recently announced deal with Krescent pertaining to the Hercules Prospect and is similar in technical nature and commercial terms.\n\nThe Aquarius Prospect is located immediately north of Hillister East Field (6.9 MMbo & 12.2Bcfg) and is targeting Upper & Middle Wilcox sands with multiple objectives between 8200 to 9800 feet with a well defined amplitude versus offset (\"AVO\") event, that appears in existing 3D seismic imaging, and conforms to structure. \n\nKrescent will be the operator and have a turn-key drilling contract in place to drill the prospect.\n\nThe terms of Empyrean's participation are that Empyrean will pay 13.333'% of the drilling and completion costs (\"to the tanks\") and 10% of all other prospect costs (including land, G&G and seismic) to earn a 10% working interest in the prospect.\n\nDry hole costs are expected to be in the order of US$607,000 for the final turnkey contract (Empyrean share $80,858) and prospect costs are approximately US$553,000 (Empyrean share $55,300). The prospect cost payments have already been made to Krescent. The dry hole drilling costs are expected to be called by the operator in late January with drilling expected to commence in February.\n\nFurther updates will be provided as significant events occur.\n\n\nCommenting today Empyrean Director Tom Kelly said - \"We are again delighted to be working with Krescent on a further new project. These shallow prospects, although the...