By Joe Hope
Empyrean Energy PLC shares rose Wednesday after it said that it intends to proceed with the second phase of exploration at Block 29/11 in China and to participate in the drilling of the Topaz prospect.
Shares at 0726 GMT were up 0.43 pence, or 20%, at 2.58 pence.
The oil-and-gas company said that based on preliminary assessments of the Jade well results in the block, and an agreement with its partner China National Offshore Oil Company to further cooperate after analysis, it will proceed with exploration and drilling.
Empyrean is operator of the block and has a 100% working interest in the exploration phase, while China National can assume a 51% participating interest in the development and production phase.
The company had said on April 27 that exploration of the Jade prospect returned disappointing results, but further data analysis shows the Topaz prospect remains viable, subject to financing.
“Empyrean’s early assessment is that the much larger Topaz prospect remains a world class conventional light oil target that, based on existing understanding of available data, will be drilled,” Chief Executive Tom Kelly said.
Write to Joe Hoppe at [email protected]
Credit: www.marketwatch.com /