Empyrean Energy Abandons Wilson River-1 After Disappointing Test Results; Shares Plunge
Empyrean Energy plc, the oil and gas company with assets in Australia, Indonesia, and the United States, has announced the outcome of drill stem testing (DST) at its Wilson River-1 well, confirming the absence of moveable hydrocarbons.
The company reported that a fluid sample was recovered during DST operations and sent for analysis. The final well testing report has now confirmed the sample consisted of formation water from the Murta Formation. Consequently, the decision has been made to plug and abandon the well, with the rig already released.
“This is a disappointing result,” said CEO Tom Kelly. “While the well showed potential oil pay on the quad combo log, the DST did not indicate any moveable hydrocarbons. We believe this is due to ineffective hydrocarbon migration within the trap, resulting in an insufficient displacement of formation water.”
Despite the outcome, Kelly noted that the drilling and testing operations were completed safely and efficiently.
The findings have been reviewed by Empyrean’s Technical Director, Gaz Bisht, a geoscientist with more than 35 years of experience in the field.
Empyrean shares fell by as much as 60% following the announcement.
