Empyrean talk Sugarloaf results

PUBLISHED: Jun 25 2014 @ 03:52 | Comments (0) |

Were they sweet?

Empyrean Energy (LSE:EME), an US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, has issued a production and operations update for the three month period to the end of March 2014, updated with current data since the end of the Quarter, where available.

Empyrean has a 3% working interest in its flagship Sugarloaf AMI in the prolific Eagle Ford Shale, Texas. The Project is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation (NYSE:MRO).

Q1 2014 Highlights from Sugarloaf:

· 121 gross producing wells at Sugarloaf as at end of the Quarter, an increase of 2 wells since the end of December 2013

· Average production for the Quarter of approximately 960 boe/day net to Empyrean

· Total production for the Quarter remained strong with a 3.9% increase in aggregate net production (86,367 boe) over the previous quarter (83,127 boe) and a 78% increase compared to the comparable quarter in 2013 (48,402 boe)

Current Operational Highlights from Sugarloaf:

· 128 gross producing wells on Sugarloaf AMI as at the end of May 2014

· 10 wells drilling and 21 wells undergoing completion operations currently

· Marathon still targeting to drill approximately 100 gross wells on the Sugarloaf AMI during 2014

· A total of 35 wells spud so far during 2014 with 15 spud during May alone and a further 33 planned for June, July and August 2014

· Austin Chalk (‘AC’) formation capable of delivering excellent short term upside for the Project

· New down-spacing initiatives across both formations demonstrate potential to significantly expand reserves

· New EFS wells continue to outperform type curves

· Updated reserves as announced 20 May 2014, and with an effective date of 31 December 2013

Empyrean CEO, Tom Kelly said:

“As forecast, Empyrean continues to efficiently and effectively unlock the value at Sugarloaf. Production and new wells drilled and planned continue to increase, which will naturally have a positive effect on our revenues. However, more importantly, since the December 2013 Reserves Report released 20 May 2014, all wells successfully drilled into the Austin Chalk will notionally shift those drilled well locations, and an additional area surrounding the successfully drilled location, out of the Contingent Resource category and into Reserves. This can have a significant and positive impact on reserves and value in the short to medium term.”

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