Empyrean provide Sugarloaf Project update

PUBLISHED: 06 Nov 2013 @ 23:19 | Comments (0) |

Empyrean Energy (LSE:EME), a US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, has provided a production and operations update on its flagship Sugarloaf AMI in the prolific Eagle Ford Shale, Texas. Empyrean has a 3% working interest in the Project which is operated by US major Marathon Oil Company.

Highlights:

· 101 gross producing wells on Sugarloaf AMI as at end of September 2013, an increase of 10 wells since the end of June 2013

· Production average of approximately 544 boe/day (before Natural Gas Liquids are separated) net to Empyrean for the three months

· Production remained strong with a 2% increase (equivalent to 1,029 net BOE) over the previous quarter and a 60% increase compared to Q3 2012

· Two wells targeting the Austin Chalk, the formation directly above the Eagle Ford Shale, commenced production in July 2013 with similar flow rates to a nearby Eagle Ford Shale well observed

· Further wells planned for the Austin Chalk as part of additional testing of the formation

· Well down spacing initiatives on-going and testing results expected by YE 2013

· Success on the Austin Chalk and/or well down spacing initiatives could have a significant positive impact on reserves, production and attributable value

Empyrean CEO, Tom Kelly said, “Empyrean has reached a significant milestone at the Sugarloaf AMI with an interest in over 100 gross wells in production. We look forward to well down spacing results along with the continued assessment of the Austin Chalk with great interest, as success from either initiative is likely to further enhance reserves and build shareholder value.”

Production:

The following is a summary of wellhead production data received from the Operator from wells at the Sugarloaf Project from April 2012 through to September 2013. All figures that are stated as “Net to EME” are calculated at the working interest percentage in each well and multiplied by the net revenue interest (‘NRI’) to give an amount to Empyrean net of royalties but before any taxes.

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