Empyrean Energy

Web site : http://www.empyreanenergy.com

Careful now .

cynic...Kelly has made a note of your comment

RNS update:

28 February 2011



Empyrean Energy PLC

("Empyrean" or the "Company"; Ticker (EME))



Sugarloaf Project, ("Sugarloaf"), Block B, Texas USA

Empyrean is pleased to provide the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.



Production Data

The following wells have been on production for a period of 60 days and Empyrean is pleased to provide the market with an update on the produced volumes during that period:-




Working Interest
Total Gas Production (mmscf)
Total Condensate Production (bbls)
Average Daily Equivalent Oil Rate (boe/d)*

Urrutia #1H
3%
102.3
35,084
869

Kowalik #1R
10.2%
90.2
28,825
731


*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio.



Remedial operations on Direct Assets #1H well were successful and the well commenced production on 27/01/11 on a restricted choke setting. Over the most recently reported 5 day period the well averaged the following production rates.


Working Interest
Average Daily Gas Production (mmscf/d)
Average Daily Condensate Production (bbls/d)
Average Daily Equivalent Oil Rate (boe/d)*

Direct Assets #1H
3%
1.48
479
726


*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio.

Due to the length of time between the fracture stimulation of this well and it being unloaded to sales, some of the pressures created during the stimulation process had bled off into the formation; this is a likely explanation of the lower early production rates observed in this well.

Operations

Holman #1H (3% WI)

This well has been drilled and cased with a Total Depth of 17,570 ft. The fracture stimulation of this well commenced on the 24th February 2011 and Empyrean will update the market when stabilized flow has been achieved.

Jordan #1H (3% WI)

This well has been drilled and cased with a Total Depth of 16,472 ft. This well will be fracture stimulated in due course and Empyrean will update the market when stabilized flow has been achieved.

PMT #1H (1.11% WI)

This well location lies across the Sugarloaf and neighbouring Hilcorp operated AMIs in which Empyrean does not participate. As such Empyrean holds a blended working interest of 1.11% in this well. The well spudded on 14/2/11 and Empyrean will provide the market with an update once the drilling of this well has been completed.

Buehring #1H (3.0% WI)

Drilling operations commenced on the 18/02/11 and Empyrean will provide the market with an update once the drilling of this well has been completed.

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.

This is due a re-rating. It is selling at a discount to its drilling partners and is doing the rounds in the City. The sp has been considerably higher when there were less proven reserves, but it has been overlooked since.

Everyone seems to have got bored with this stock. Fair enough but with it producing some $4m pa and rising, a market cap of just 12.5m and one of its partners being bought out by Marathon for a heft $3.5b (for 50%) then there is every reason to reckon that this is going to get a decent re-rating soon.

Thank heavens for that! I've already got a few!

EME's AGM on Friday, June 24th went well. It lasted 2 hours with the directors being very willing to answer all questions on Frank Brophy's geological presentation. It all looks to be very prospective with a much greater number of wells coming on stream and these being in richer areas than have been drilled so far. It would be likely that Marathon Oil, which has already bought in, could look to acquire more of their partners. Either way, EME's shares look far too cheap now.

EME is steadily building up its production through its JV partners' drilling programme. The sp has fallen behind events and sometime soon will get noticed for a re-rating.

StockMarketWire.com
Empyrean Energy can start to access the $50m loan agreed with Macquarie Bank.

Empyrean said it had now satisfied the major conditions enabling it to draw down on the first $10m of the facility.

The money will be used to continue the development of the firm's Sugarloaf project, in the Texas Eagle Ford shale play.

Empyrean Energy confirms Marathon plans at Sugarloaf
26th Feb
http://www.directorstalk.com/empyrean-energy-confirms-marathon-plans-at-sugarloaf/

Empyrean Energy (LON:EME) has increased its working interest in the Eagle Oil pool development project in the San Joaquin Basin, California, to 57.2126%.

The increase in working interest has resulted from previous partner FAR Limited deciding to surrender its interest.

FAR Limited has stated the reason for surrendering its interest in the project along with another non-core asset is to focus operations and exploration efforts on its African assets.

There is no direct cost associated with the additional working interest other than the nominal costs of assignment and recording.

Empyrean will pay a proportionately higher share (57.2126%) of future joint venture costs.

Missed this one Harry.lol

http://www.investegate.co.uk/empyrean-energy-plc--eme-/rns/production-and-operational-update/201304190700047566C/

" Revenues for the 12 months to 31 March 2013 increased by 119% to £5,893,000 (2012: £2,694,000)

· Net profit after tax for the 12 months to 31 March 2013 increased by 198% to £2,014,000 (2012: £675,000)

· Substantial drawdown on US$50 million Macquarie Bank loan to fund Sugarloaf AMI development (US$10.52 million drawn at 31 March 2013)

· Fully funded for current proposed drill schedule through 2013"

MC of £15mm.

http://www.investegate.co.uk/empyrean-energy-plc--eme-/rns/final-results/201305150800027483E/

Update on "River Bend" this morning. Looks like it flows if even to a relatively small amount. Not sure if it would be a commercial horizon on it's own at this level of production.

http://www.investegate.co.uk/empyrean-energy-plc--eme-/rns/operations-update--riverbend-project/201305290830027727F/

Approx 9,000,000 director options expired yesterday. Not worthy of a RNS apparently

Portfolio for EME shows a 3.625 drop but there has been no drop.

StockMarketWire.com
Empyrean Energy unveils record financial results and production for the year to the end of March.

Empyrean says the record results follow a significant step-up in production at the Marathon Oil-operated Sugarloaf AMI project targeting formations including the prolific Eagle Ford Shale and Austin Chalk in Texas. Empyrean has a 3% working interest.

Revenues for the year rose by 51% to $13.9m while net profits increased by 88% to $5.2m following a 50% increase in production net to Empyrean (before royalties) to 335,305 barrels of oil equivalent.

Chief executive Tom Kelly said: "This has been a year of tremendous growth for Empyrean. Marathon continues to ramp up drilling at our primary asset, and we believe potentially significant reserves upside exists within both the Eagle Ford Shale and the Austin Chalk, with the latter showing signs of being a transformational pay-zone for the company and its partners following recent successful appraisal wells.

"Empyrean has chosen to undertake a Formal Sales Process and Strategic Review with highly regarded advisers in Cenkos and Macquarie Bank advising and coordinating the process, against the backdrop of recent increased levels of corporate activity and industry interest in the region, and in order to maximise value for its shareholders."

StockMarketWire.com
Total production to Empyrean Energy from its interest in the Sugarloaf AMI project in Texas rose to 96,660 barrels of oil equivalent in the third quarter - 25% up on the previous three months.

Average daily production from Sugarloaf totalled 1,051 boe/d while average daily production for September was 1,327 boe/d.

Empyrean says that as at 10 December, a further 9 wells have been added to production bringing the total to 184 gross producing wells including 14 Austin Chalk wells.

Empyrean chief executive Tom Kelly said, "These highly encouraging production rates from Sugarloaf reflect Marathon's significant step-up in drilling and the impact of both well-spacing initiatives and the targeting of additional formations such as the overlying Austin Chalk.

"In light of this, the company believes that there is further potential for reserves uplifts at the project. Having commenced a 'stack and frac' pilot programme in November designed to further drive recovery, we continue to believe that there is significant additional upside available at Sugarloaf."

Empyrean has a 3% working interest in the project, which is operated by Marathon Oil.

EME Good uplift; but what about the expensive price of oil to extract, compared to global slide in $ barrel.

OPEC starting to shows signs of disintegration between members after recent OPEC meeting. Many OPEC need $ price to be above $80 barrel.

Only way out for OPEC is to cut OPEC production OR a rise in tension for Middle East oil supplies. However this could turn into a ' $bopd race to the bottom' by OPEC. Russia, Iran and others are already well below their $bopd national budget requirements.

Interesting situation, the Oil production game is changing; - from simple volume of oil discovery & production, to efficiency of volume production while maintaining margins.

Although cheaper oil will help global growth, Western and other national economies also need oil $bopd to remain above $60. If below this figure respective GDP growth will risk deterioration into a deflationary situation and a destruction spiral would ensue.

DYOR
HAb

StockMarketWire.com
Empyrean Energy's net profits rose to $2,705,000 in the six months to the end of September - 86% up on last time.

The US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, saw both revenues and gross profits increase by 32% to $7,911,000 and $4,393,000 respectively.

Chief executive Tom Kelly said: "There has been a significant amount of operational progress at our flagship Sugarloaf AMI Project with the company's net production and well count continuing to benefit greatly from the increased activity.

"Whilst the macroeconomic environment has been challenging in recent months, the Board of Empyrean continues to assess the range of options currently available to it as part of the ongoing strategic review process in order to maximise value for its shareholders.

"Importantly, with our world class operator in Marathon continually focussed on lowering the costs of drilling and production as well as improving the economics and speed of its various drilling and operational initiatives, I believe that the Sugarloaf AMI remains a very viable project for Empyrean in the current low oil price environment and provides us with significantly de-risked exposure to the onshore US oil and gas market.

"I also welcome the continued support of Macquarie in providing the additional funding to support the Company's continued participation in this play."