Empyrean Energy Will Not Acquire Additional Stake in Indonesia Gas Asset

Empyrean Energy will not be buying an additional 10% stake in the West Natuna Exploration (WNEL) in Indonesia from Conrad Petroleum and the two parties have agreed to an amendment to the original terms of the acquisition, Empyrean Energy said May 30.

WNEL owns 100% of the Duyung production sharing contract in Indonesia.

"The company has chosen not to increase its interest in WNEL to 20%, thus its interest remains at 10%," it said.

The AIM-listed Empyrean, announced in April that it entered an agreement to conditionally acquire up to a 20% shareholding in WNEL. The Duyung PSC includes the Mako shallow gas discovery which is estimated to contain between 0.4 trillion ft³ and 1.3 trillion ft³ of gas in place.

The Duyung PSC is an offshore permit of over 1,100 kilometres² in the West Natuna basin and close to existing pipeline infrastructure owned by the Indonesian government.

Planning for the Mako South-1 well is on track and is anticipated to spud in mid-to late-June 2017. The objective of the well is to flow test the gas sands and provide key data on permeability and gas saturation properties of the reservoir. 

Shardul Sharma