REG - Empyrean Energy PLC - Block 29/11 China update

Empyrean EnergyAnnouncement

13/06/2024 07:00

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RNS Number : 2918S  Empyrean Energy PLC  13 June 2024

 

Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas

 

Empyrean Energy plc

 

Block 29/11 China update

 

13 June 2024

 

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development
company with interests in China, Indonesia and the United States, provides the
following update on Block 29/11 offshore China.

As announced on 4 May 2022, in order to proceed with the second phase of
exploration on Block 29/11 Empyrean committed to drill the Topaz project by 12
June 2024. As of that date, Empyrean has not commenced the drilling of the
Topaz prospect and therefore has not met the requirements to continue the
cooperation on Block 29/11 with China National Offshore Oil Company ("CNOOC").

During 2023, Empyrean engaged LAB Energy Advisors (London) with respect to
broadening the reach for possible risk sharing alternatives and farm out
opportunities for the Topaz prospect. Despite strong interest in the technical
merit of the Topaz prospect, no farm out deal has been reached as of today's
date.

Empyrean has put forward a submission to CNOOC for an extension on Block
29/11.

The Company will make a further announcement should its request for an
extension be granted.

Empyrean's plan is to maximise the value in its 8.5% interest in the Mako gas
field discovery on the Duyung permit in Indonesia. The sell down process being
coordinated by the operator of the Duyung permit through Jefferies
International Bank is ongoing.

A binding Gas Sales Agreement ("GSA") is seen by Empyrean as being a likely
requirement or precursor to the completion of any sell down transaction. Heads
of Agreement ("HOA") have been reached for both domestic gas into Indonesia,
subject to transportation pipelines being built, and for gas sales for the
majority of Mako gas into Singapore (and 100% if domestic transportation
pipelines are not built). Both of these HOAs are anticipated to be converted
to binding GSAs in the near term.

 

Empyrean CEO, Tom Kelly, stated:

 

"Empyrean continues to enjoy a very professional and cooperative working
relationship with CNOOC on Block 29/11. We will do everything within our
control to continue this working relationship. Empyrean acknowledges that
negotiating GSA's involving governments and government bodies are often
protracted in their negotiation timelines and these delays have impacted
Empyrean's ability to fund its objectives in China in a timely fashion. In any
case, we will continue to work towards maximising the substantial value from
our Mako discovery in Indonesia in order to move forward with our plans to
create value for shareholders. By making the submission for an extension in
China, we plan to have options in addition to the existing projects in the
Sacramento Basin. We are also being proactive in identifying additional low
risk/high impact opportunities that will complement our portfolio as we
monetise Mako."

 

For further information please contact the following:

 

 Empyrean Energy plc
 Tom Kelly      Tel: +61 6146 5325

 Cavendish Capital Markets Limited (Nominated Advisor and Broker)
 Neil McDonald  Tel: +44 (0) 20 7297 8900

 Pearl Kellie

 

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