LONDON (Alliance News) - Empyrean Energy PLC Wednesday said its fourth-quarter production increased as new wells joined its production portfolio.
The US-focused oil and gas development and production company said the total production for the three months ended December 31, 2013 remained strong, with a 2% increase in aggregate net production to 83,127 barrels of oil equivalent compared from the previous quarter and a 92% increase compared to the same period in the previous year.
The company noted that it has added 18 wells in the quarter, bringing its total number of gross producing wells to 119 on the Sugarloaf Area of Mutual Interest in Texas.
The net production average was roughly 904 barrels of oil equivalent per day to Empyrean for the three month period.
Empyrean has a 3% working interest in its flagship Sugarloaf AMI in the prolific Eagle Ford Shale. The project is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation.
Empyrean said Marathon is currently targeting to drill approximately 100 to 110 gross wells on the Sugarloaf AMI during 2014, representing an increase of over 100% on the 48 wells drilled during 2013.
Empyrean also added that Marathon is currently forecasting well costs to reduce significantly to USD6.5 million to USD7.5 million from USD7.5 million to USD8.5 million for the site.
Empyrean Energy shares were down 1.0% to 12.38 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Empyrean (EME)