Last checked at 18 Dec 2013 10:45
Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas
18 December 2013
Empyrean Energy PLC ('Empyrean' or 'the Company')
2014 Drilling Guidance
Empyrean Energy Plc, the AIM-listed condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA, notes the announcement on 17 December 2013 by AWE Limited, a partner in Empyrean's Sugarloaf AMI ('the Project'), referring to an accelerated drilling programme targeting 100-110 wells at the Project in 2014.
Empyrean wishes to clarify that the operator of the Project, Marathon Oil Corporation (NYSE:MRO) ('Marathon') has provided indicative guidance only that the 2014 drilling schedule may target this number of wells. At this stage, Empyrean has not received a drilling schedule for 2014 from Marathon, nor details of the well locations or targeted formations. In line with the Company's standard practice, Empyrean expects to provide further guidance once a detailed drilling schedule is received from the operator. The well count guidance released by AWE should be regarded as indicative only at this stage and is subject to further review. The present guidance for 2014 indicates a significant rise in well numbers over the number of wells drilled during 2013 (approximately 48) and, as stated in the announcement of 13 December 2013, Empyrean believes that an accelerated drilling pace, in conjunction with the tighter spacing regime, will have a positive impact on reserves and production, especially if Marathon are able to achieve their stated well cost targets.
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.
**ENDS**
For further information please visit www.empyreanenergy.com or contact the following:
Tom Kelly | Empyrean Energy plc | Tel: +618 9481 0389 |
Neil McDonald Beth McKiernan | Cenkos Securities Plc Cenkos Securities Plc | Tel: +44 (0) 131 220 9771 Tel: +44 (0) 131 220 6939 |
Hugo De Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Elisabeth Cowell | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Lottie Brocklehurst | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
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 24,300 gross acres centrally positioned in the liquids rich sweet-spot within the field. Empyrean has an interest in over 109 gross producing wells with full development expected to reach over 280 wells and further upside potential from additional formations and closer well spacing. The Company has term debt facility of up to US$50 million with Macquarie Bank 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.