Empyrean release Q1 details

PUBLISHED: 24 May 2015 @ 00:46 | Comments (0) |

Q1 2015 Production from Sugarloaf AMI, Texas

Empyrean Energy, the profitable US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, has provided a production update from its flagship Sugarloaf AMI Project in the prolific Eagle Ford Shale, Texas, for the three month period to the end of March 2015.

Empyrean has a 3% working interest in the Project, which is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation (NYSE:MRO)

Highlights:

o Consistent production rates from Sugarloaf AMI for Q1 2015 of 109,425 boe net to Empyrean’s interest after royalties and costs (‘royalties’) (Q4 2014: 111,921)
o Average daily production from Sugarloaf for Q1 2015 of 1,216 boe net to Empyrean’s interest after royalties (Q4 2014: 1,217)
o Continued drilling and investment in Sugarloaf by Marathon, positively impacting drilling efficiency
o 205 gross producing wells at Sugarloaf at 31 March 2015, an increase of 18 since Q4 2014
o 218 gross producing wells at Sugarloaf at 20 May 2015, including 28 in the overlying Austin Chalk formation
o Inventory of 40 wells drilled and in various stages of completion at the end of the Quarter
o First “Stack and Frac” pilot now in production with encouraging early results
o Sugarloaf continues to demonstrate significant potential upside due to co-development opportunities
o Austin Chalk continues to be developed positively with short term potential to increase reserves from further delineation
o The Upper Eagle Ford is emerging as third co-development appraisal opportunity with potential upside available from delineation of a contingent resource

Empyrean CEO, Tom Kelly said, “Production from Sugarloaf continues to be economic even at current oil prices and has been maintained at steady rates, notwithstanding lower levels of drilling activity in the current, challenging oil price environment. The Project has also benefited from cost reductions and continued optimisation initiatives during the Quarter. Despite the challenges the sector faces, we have a healthy inventory of drilled wells to be placed into production in the coming months. We are also encouraged by the early “Stack and Frac” pilot results and look forward to more data and analysis from Marathon.

“The upside potential for Sugarloaf continues to grow with the rapid delineation of the Austin Chalk for co-development with the Lower Eagle Ford and the emergence of the Upper Eagle Ford as a co-development appraisal opportunity. We are positive for the coming year, having secured further financing from Macquarie, and look forward to updating the market on our activities as we deliver additional value from this major project. “

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.