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Update on Strategic Review and FSP alongside
Further to the announcement by the Company on 10 July 2014 in connection with a strategic review and the commencement of a formal sale process, Empyrean advises that it has set a closing date for bids of 25 September 2014.
As notified previously, the Board reserves the right to alter any aspect of the process as outlined above or to terminate it at any time and will make further announcements as appropriate. The Board reserves the right to reject any approach or terminate discussions with any interested party or participant at any time. Following the receipt of any bids, a period of evaluation is expected before the Company makes any further announcement.
This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers and there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.
The details of the formal sale process were set out in the announcement by the Company on 10 July 2014.
Increase in Working Interest at Eagle Oil Pool Development Project San Joaquin Basin, California:
Empyrean Energy, the profitable US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, has said that following a surrender of a minor interest in the Eagle Oil Pool Development Project (‘the Project’) by a partner, Empyrean’s working interest has increased from 57.2% to 58.084%. The other remaining partners in the Project are Strata-X, Inc with 23.952% and Lakes Oil Company with 17.964%.
The Eagle Oil Pool:
The Project area consists of approximately 5,000 gross acres. Exxon drilled a well in 1985 which was abandoned and Royal Resources took over the well in 1986 and deepened it, encountering good oil shows in the Eocene Age Gatchell sands at an approximate depth of 13,200 feet. Test rates of up to 192 BBL/d and 427 mcf/d were reported. Approximately 10,000 BBL/d of light oil were recovered but the well was considered to be non-commercial, likely due to formation damage by heavy drilling mud and cement squeezing. Subsequent activity on the prospect was met with mechanical issues despite continuing indications of oil shows in the primary target. The Gatchell sands have produced over 1 billion barrels of oil in the Coalinga area approximately 20 miles west and north-west of the Eagle Oil Pool acreage. The Company believes that the Eagle Oil Pool Development Project offers exposure to significant upside and will progress its development in consultation with its project partners.
