Empyrean Energy PLC Q3 2014 Production and Operational Update (3680X)
November 19 2014 - 2:00AM
UK Regulatory
TIDMEME
RNS Number : 3680X
Empyrean Energy PLC
19 November 2014
Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil &
Gas
19 November 2014
Empyrean Energy PLC ('Empyrean' or 'the Company')
Q3 2014 Production and Operational Update
Empyrean Energy, the profitable US onshore oil, gas and
condensate exploration, development and production company with
assets in Texas and California, is pleased to provide the following
production and operations update on its flagship Sugarloaf AMI
('Sugarloaf' or the 'Project') in the prolific Eagle Ford Shale,
Texas. This update is in respect of the three month period to the
end of September 2014 ('Q3 2014' or the 'Quarter') and has been
updated with figures taken since the end of the Quarter, where
available.
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) ('Marathon' or the 'Operator').
Highlights
-- 154 gross producing wells at the end of the Quarter, an
increase of 26 wells since the end of June 2014
o 175 gross producing wells (8 Austin Chalk) as at 18 November
2014
-- 8 wells currently being drilled (4 Austin Chalk) and 22 wells
undergoing completion operations (7 Austin Chalk)
-- The first 'stack and frac' pilot programme has commenced
o Initiative is designed to drive recovery and optimise
co-development of multiple horizons
o Stack and frac pilot will target Austin Chalk, Upper Eagle
Ford Shale and two Lower Eagle Ford Shale layers
-- Production data will be reported on receipt of complete and
final Q3 2014 revenue remittance advice from the Operator
Empyrean CEO, Tom Kelly said, "We continue to benefit
significantly from Marathon's rapid and highly-efficient drilling
programme. Having previously reported successful results from
Marathon's Austin Chalk initiative, we are pleased to see further
wells drilled and being completed from this formation, which we
expect will result in the conversion of the reported 2C Contingent
Resources for the Austin Chalk formation 3.87 million barrels of
oil equivalent into 2P reserves in due course. With the current
drilling schedule and completions inventory and the 'stack and
frac' pilot programme having now commenced, there is plenty of
near-term activity and potential reserve upside available at this
exciting asset and we look forward to reporting on our
progress."
Operations
At the end of the Quarter, Empyrean had 154 gross wells that
were producing at Sugarloaf, an increase of 26 wells since the end
of June 2014. Currently, there are 8 wells being drilled (including
4 Austin Chalk wells) and a further 22 wells undergoing or awaiting
completion operations (including 7 Austin Chalk wells).
The Sugarloaf AMI partners have been offered the opportunity to
participate in their proportionate share of further leases acquired
by the Operator. Marathon has acquired 18.55 net acres and Empyrean
has elected to participate in its proportionate share (0.5565
acres) of the acquired leases. No assignment of lease documents
have yet been executed or recorded and Empyrean will report further
on these lease acquisitions after the assignments have been
executed and recorded.
Production
In line with the Company's previous guidance, production data
and associated revenues will be reported on the basis of the
revenue remittance advice received rather than wellhead production
data. Complete and final advice in respect of the Quarter has yet
to be received from the operator and will be announced to the
market in due course and as soon as reasonably practicable.
Corporate
The Company is also pleased to report that it completed its
scheduled repayment of an amount totalling US$1.5 million on its
debt facility with Macquarie Bank Limited. After the payment, the
resulting balance outstanding on the facility was US$7.67 million.
The Company expects that further drawdowns under the facility will
be necessary for the further development of the Project.
**ENDS**
For further information please visit www.empyreanenergy.com or
contact the following:
Tom Kelly Empyrean Energy plc Tel: +618 9481 0389
Neil McDonald Cenkos Securities Plc Tel: +44 (0) 131 220 9771 / +44
(0) 207 397 1953
Nick Tulloch Cenkos Securities Plc Tel: +44 (0) 131 220 9772/ +44 (0)
207 397 1950
Hugo De Salis St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Ltd
Elisabeth Cowell St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Ltd
Lottie Brocklehurst St Brides Media & Finance Tel: +44 (0) 20 7236 1177
Ltd
The information contained in this announcement was completed and
reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank
Brophy BSc (Hons) who has over 40 years experience as a petroleum
geologist.
Notes to Editors:
Empyrean Energy Plc is an AIM listed (Ticker: EME) profitable US
on-shore oil and gas development and production company focussed
primarily on the advancement of its assets in Texas and California.
The Company's portfolio represents a mix of assets at various
stages of development. Its flagship project is the Sugarloaf AMI in
the prolific Eagle Ford Shale, Texas, where it has a 3% working
interest in approximately 24,000 gross acres centrally positioned
in the liquids rich sweet-spot within the field. Empyrean has an
interest in 175 gross producing wells with full development
expected to reach over 770 wells. Further development of the Eagle
Ford Shale anticipated to require in the order of a further 300
wells, with down spacing potential of a further 200 wells. Further
development of the Austin Chalk anticipated to require in the order
of a further 300 wells, with down spacing potential of a further
235 wells. The Company has term debt facility of up to US$50
million with Macquarie Bank, subject to reserve hurdles and
drawdown approvals, in place in order to develop this acreage which
is operated by US major Marathon Oil Company.
Other assets include a 57.2% interest in the Eagle Oil Pool
Development Project located in the San Joaquin Basin, southern
California, a proven oil and gas province. Empyrean's large working
interest in this project provides the Company with flexibility and
leverage with potential high impact from success. Additionally,
Empyrean has a 7.5% interest in the Sugarloaf Block A operated by
ConocoPhillips in the Eagle Ford Shale, and a 10% working interest
in the Riverbend Project in Texas currently producing from the
Wilcox formation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBPBATMBTBBLI
Empyrean Energy (LSE:EME)
Historical Stock Chart
From Jul 2024 to Aug 2024
Empyrean Energy (LSE:EME)
Historical Stock Chart
From Aug 2023 to Aug 2024