Empyrean Energy to commence production at Dempsey well in US

Empyrean Energy expects to shortly begin the production of commercial gas flows at the Dempsey 1-15 well in the Sacramento Basin, onshore California, US.

The Dempsey well is expected to produce commercial gas flows at 1,200 million cubic feet (mcf) a day, thereby generating cash flow for the Dempsey joint venture (JV) partners.

Empyrean has a 30% working interest in the Dempsey gas project, while the remaining interest is held by Sacgasco (50%), Pancontinental Oil and Gas (10%) and Xstate Resources (10%).

The planned production represents combined gas flow rate from Field Level Kione Sandstone and Zones 2, 3 and 4.

The operator of the Dempsey 1-15 well, Sacgasco perforated and tested Zone 4 with gas flow co-mingled with production from Zones 2 and 3 at a combined rate of 175mcf /day on a 12/64in choke.

The operator will now bring the field and older zones in the well into production while monitoring them in separate streams at the surface to enable reservoir assessment.

These measures will form the basis for further development activities in the levels.

Empyrean Energy CEO Tom Kelly said: “Thanks to the close proximity of existing infrastructure owned by the JV, the Dempsey Well can be connected to the sales pipeline in an expedited timeframe.

“With production of commercial gas flows at 1,200 mcf per day imminent, we look forward to reaping the benefit from this early cash flow as one of the JV partners with a 30% working interest.

“Additionally, there is significant upside potential from nearby wells where plans are in place to connect four idle wells into the grid to further increase production and cash flow.”

Sacgasco also plans to connect four idle wells into the sales gas system in the Dempsey area in an effort to potentially add to production and cash flow.

The company has submitted applications to permit re-entry of the Alvares 1 wellbore in order to assess the integrity of the well bore.

Set to commence in the third quarter of this year, the assessment will form the basis for a decision to either log through the casing and perforate zones or drill a sidetrack well.