Empyrean Energy Oil, Gas Output Dips Due to Flooding

By Alex MacDonald

LONDON--Empyrean Energy PLC (EME.LN) said Wednesday that oil and gas production from its flagship Texas shale oil and gas project dipped in the second quarter due to flooding.

The company said that its share of production from the Marathon Oil Corp. (MRO)-operated Sugarloaf AMI project was 108,849 barrels of oil equivalent after royalties and costs in the three months to June 30. This compares with 109,425 barrels of oil equivalent in the first three months of the year

There were 231 gross producing wells at Sugarloaf AMI at the end of June, 26 more than at the end of the first quarter. The company also had 58 wells in various stages of completion.

Sugarloaf AMI, which is 3% owned by Empyrean, also boosted its proven reserves by 63% to 5.78 million barrels of oil equivalent and increased its proven and probable reserves by 94% to 12.64 million barrels of oil equivalent, according to an independent report published on July 8.

The company said that it is still profitable despite the lower oil and gas price environment. "A positive development in this current oil and gas environment is that costs are continuing to come down," said Empyrean's Chief Executive Tom Kelly.

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September 02, 2015 03:29 ET (07:29 GMT)

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