Empyrean is operator with 100% of the exploration rights of the 1800km2 permit during the exploration phase of the project. The initial contractual term is a Geophysical Service Agreement (GSA) for two years with a work programme commitment of acquisition, processing and interpretation of 580km2 of 3D seismic data. The survey, which was completed in August 2017, has been designed to provide full fold 3D seismic coverage over the key exploration prospects, Jade and Topaz. Processing and interpretation is underway and preliminary internal interpretation of the raw seismic data has confirmed the structural validity of the Jade and Topaz prospects and also identified a third significant target named Pearl, which is located north of Topaz. The permit is directly South East of the billion barrel+ Liuhua Oil Field complex operated by CNOOC and four recent discoveries to the permits West and South further enhance the exploration attractiveness of the Jade and Topaz prospects.
Subject to Empyrean first entering a Production Sharing Contract (PSC) after successfully completing the GSA phase, and in the event of a commercial discovery, CNOOC Limited will have a back in right to 51% of the permit.
Empyrean’s technical group is also planning to complete the geological work in Q4 2017 with particular focus on the migration pathways of oil in the basin. This work will then be incorporated with the seismic mapping for finalisation of the prospective resources and geological risks of the Jade and Topaz prospects.