LONDON (ShareCast) - (Sharecast News) - Oil and gas development firm Empyrean Energy saw its shares jump on Thursday after approval to test the potential for over-looked natural gas in the Alvares 1 well in the Sacramento Basin, California.
Sacgasco Limited, the operator of the company's interests in the Basin, is targeting re-entry at the well for early in the fourth quarter to prove up large gas resources by appraising extensive natural gas shows in the 1982 well.

Empyrean chief executive Tom Kelly said: "The Alvares 1 well has previously flowed pipeline quality gas to the surface from the targeted reservoir formation and we believe that given the relative costs of re-entering the existing well bore are a fraction of the cost of a new well, it is definitely worth ascertaining whether the old well bore can be efficiently utilised."

The well at the Alvares prospect, in which Empyrean has a 25% working interest, was originally focused on oil targets.

The well is one of only three on-structure wells in the "under-explored" part of the Northern Sacramento Basin that flowed pipeline quality natural gas to the surface on test and will see state-of-the-art through-casing gas detection logs, and high penetration perforating tools utilised for testing.

"The opportunity to explore efficiently for large gas accumulations relatively close to infrastructure in the energy hungry Californian market really compliments Empyrean's portfolio that is spearheaded by its offshore China permit offering best case prospective resources from three mature drill targets of over 770m barrels of oil," said Kelly.

Empyrean Energy's shares were up 11.40% at 10.75p at 1234 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE