Business
Participation in 10% of Hercu
Participation in 10% of Hercu.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n RNS Number : 8960D Empyrean Energy PLC 10 December 2009 \n10th December 2009\n\n\nEmpyrean Energy PLC\n('Empyrean' or the 'Company', (EME))\n\nHercules Prospect, onshore Texas, USA.\n\n\n\nEmpyrean signs new participation agreement for 10% of the Hercules Prospect.\n\n\nHercules has a mean gross unrisked resource potential of 21.4 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 Hercules Prospect in Tyler County, Texas. \n\nThe Hercules Prospect, located to the north of the Theuvenins Creek and Highbaugh Fields, is targeting Upper and Middle Wilcox sands and a well defined amplitude versus offset (\"AVO\") event, that appears in existing 3D seismic imaging, within the Upper Wilcox interval. The primary objective is in sand at a depth of 10,350' where the AVO anomaly conforms to structure.\n\nKrescent will be the operator and have a turn-key drilling contract in place to drill the prospect which is expected to commence late December.\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$715,000 for the final turnkey contract (Empyrean share $95,350) and prospect costs are approximately US$630,000 (Empyrean share $63,000). These payments have already been made to Krescent.\n\nFurther updates will be provided as significant events occur.\n\n\nCommenting today Empyrean Director Tom Kelly said - \"We are very pleased to have been offered the opportunity to work with Krescent on another project. We hope to build on the good working relationship that is being built following drilling of the Quinn-3H well at the Riverbend Project. With testing preparations well underway at Quinn-3H and drilling to commence shortly at Hercules we are excited for the future of Empyrean.\"\n\n\nThe information contained in this announcement was...