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Empyrean Energy (AIM:EME), ae US onshore oil, gas and condensate exploration, development and production company, has arranged a US$5 million drawdown under Tranche B of its facility with Macquarie Bank to fund operations during 2014.
The work will include the increased pace of drilling expected on the Sugarloaf AMI, an Eagle Ford Shale oil, condensate and gas development project, in which the company has a 3% working interest and which is operated by Marathon Oil Company.
In addition, the Company is pleased to announce that it completed its scheduled repayment of an amount totalling US$1,500,000 on its term debt under Tranche A of the facility. This repayment was made from sales proceeds received from production.
After the repayment and drawdown, the resulting balance currently outstanding on the facility is US$12,170,664. The Company expects that further drawdowns on the facility will take place to fund the development of its WI in the Sugarloaf AMI.
Empyrean CEO Tom Kelly commented, “Empyrean has been able to meet its obligations under its debt facility with Macquarie from cash proceeds received from our 116 gross producing wells in the Eagle Ford Shale. As anticipated, we have arranged immediate funding of US$5 million to fund operations and expect that we will need to make further drawdowns in the future depending on the timing and number of wells in the forward development programme.
“The acceleration in the pace of drilling announced by Marathon, coupled with the successful results from down spacing initiatives and a commitment to co-develop the overlying Austin Chalk with the Eagle Ford Shale are exciting developments for Empyrean and, as evidenced by a 3,512% increase in net profit recently announced for the half year, we remain well placed to fund our share of development.”
