Empyrean Energy enters hedging programme as part of Macquarie debt financing

Oil and gas explorer Empyrean Energy said it has entered a hedging programme related to output from its Sugarloaf AMI in Texas.The news comes shortly after the US-focused group announced a debt finance facility with Macquarie Bank and Empyrean said the hedging programme fulfils the bank's requirements.The British group, which has a 3% working interest in the Sugarloaf project, said the swap deal amounts to a total of 97,371 barrels of oil, each for a fixed price of $51 (£34.14), for a year starting 1 April.The company added that it will either make or receive compensating payments from Macquarie, depending on whether the price of West Texas Intermediate crude is above or below the fixed price when the monthly calculations are made.Empyrean shares were down 4.66% to 7.27p at 15:15 on Wednesday.