Empyrean Energy

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

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."

StockMarketWire.com
US onshore oil, gas and condensate explorer, developer and producer Empyrean Energy has confirmed it is no longer up for sale.

The board believes a continuation of the formal sale process announced in July will unnecessarily prolong shareholder uncertainty with no immediate prospect of a satisfactory outcome.

The company says it has conducted a thorough and exhaustive review through its advisers, Macquarie Capital and Cenkos Securities plc, and has been encouraged by the significant level of interest from, and engagement with, potential counterparties, as well as the receipt of a number of indicative proposals which the company has sought to clarify and finalise over recent months.

But it says the significant uncertainty caused by prevailing market conditions has resulted in no proposals being received to date which the board believes appropriately value either the Company or its assets or which it believes might lead to a transaction which could be completed in a reasonable period of time.

Specifically, the benchmark price for West Texas Intermediate crude oil has fallen by over 50% since the commencement of the process and, as widely reported, this has resulted in companies across the sector reducing capital expenditure and delaying investment decisions pending an improvement or stabilisation in underlying commodity pricing.

The company says the board remains focussed on maximising value for its shareholders and, having particular regard to the current lower oil price environment, it is confident in the on-going execution of its strategy as an independent company. The board believes that shareholder value is best maintained and enhanced through its continued participation in the project and through growing the company's asset base and production profile.

Empyrean Energy PLC Q4 2014 Production from Sugarloaf AMI, Texas
Empyrean Energy is pleased to provide an update in respect of production from its flagship Sugarloaf AMI Project ('Sugarloaf' or the 'Project') in the prolific Eagle Ford Shale, Texas, for the three month period to the end of December 2014 ('Q4 2014' or the 'Quarter').

Empyrean has a 3% working interest in the Project, which is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation (NYSE: MRO) ('Marathon' or the 'Operator').

Highlights
· Significant increase in total production to Empyrean's interest from Sugarloaf for Q4 2014
o 166,572 boe net to Empyrean's interest before royalties and costs ("royalties") and 111,921 boe net to Empyrean's interest after royalties, representing an increase of 39% and 38% respectively on Q3 2014
· Average daily production from Sugarloaf for Q4 2014 of 1,811 boe net to Empyrean's interest before royalties and 1,217 boe net to Empyrean's interest after royalties
· As at 31 December 2014, there were a total of 187 gross producing wells at Sugarloaf
· As at 20 March 2015, there were a total of 205 gross producing wells including 21 in the Austin Chalk
· Benefited from improvement in single well recoveries / productivity and from further improvement in drilling and completion cost efficiencies during 2014
· Awaiting results of first "frac and stack" pilot programme
· Sugarloaf remains one of the lowest marginal cost shale plays in the USA

Empyrean CEO, Tom Kelly said, "Despite extremely challenging oil prices recently, our production from Sugarloaf is continuing to grow steadily as further development wells are brought on line. We are fortunate that our project is located in the liquids rich sweet spot of the Eagle Ford Shale play and therefore enjoys relatively low marginal costs of production compared with other shale plays across the USA.

"Marathon continues to optimise well performance and drilling and completion costs continue to decrease. We are confident that further data gathered from existing Austin Chalk wells, in conjunction with additional Austin Chalk wells coming on line at lower spacing density, has the potential to deliver a significant increase in contingent resources along with an increase in proven reserves for existing producing locations in the short to medium term.

"In response to the continued and significant level of drilling activity at Sugarloaf, we are taking steps to adjust the basis on which we report production figures in order to ensure that we are in a position to update shareholders on a timely and accurate basis, and in a manner consistent with our revenue reporting."

StockMarketWire.com
Empyrean Energy has confirmed a significant increase in reserves and resources at its flagship Sugarloaf AMI asset in the liquids rich core of the Eagle Ford Shale in Texas.

An independent appraisal and updated report prepared by DeGolyer & MacNaughton shows proven reserves (1P) up 63% to 5.78 MMboe; probable reserves up 130% to 6.86 MMboe; proven plus probable reserves (2P) up 94% to 12.64 MMboe and proven plus probable plus possible reserves (3P) up 134% to 20.91 MMboe.

Other highlights:
· 2P Reserves plus 2C Resources up 49% to 15.49 MMboe

· NPV (10) of 1P Reserves valued in report at approximately US$43.8 million

· NPV (10) of 2P Reserves valued in report at approximately US$121.7 million

· NPV (10) of 3P Reserves valued in report at approximately US$263.5 million

· 231 wells in production at the project with 54 drilled wells undergoing completion operations

· Increased reserves attributable to successful appraisal of the Austin Chalk and a shift from contingent resource status into a reserve status

· Upper Eagle Ford now represents similar upside potential to where the Austin Chalk was 18 months ago

The Project, in which Empyrean has a 3% working interest, is operated by Marathon Oil Co.

Empyrean chief executive Tom Kelly said: "These are fantastic improvements to our reserves and resources. As anticipated, further appraisal and drilling of the overlying Austin Chalk wells along with continued success from optimisation initiatives in the Eagle Ford Shale and Austin Chalk collectively have resulted in a very substantial increase in our reserves position at the Sugarloaf AMI.

"We anticipated a shift from contingent resources to reserves as further Austin Chalk wells were drilled and appraised. The excellent development rate during 2014 and, in particular, closer well spacing assumptions have resulted in assisting this conversion from contingent resource to reserves and an improvement in the volumes.

"Excellent upside potential from the relatively new productive zone, the Upper Eagle Ford formation, has now been identified by Marathon for further drilling and appraisal. The Upper Eagle Ford is already producing from a small number of wells and further pilot wells are already planned to test this productive zone.

"Although the fall in oil prices over the last 12 months has slightly impacted the Net Present Value at a 10% discount rate of Proven Reserves (1P), we are pleased to see that there has been a significant overall increase in both NPV10 of 2P and 3P reserves reflecting the increased potential of the Project. Our flagship asset continues to grow and represents a viable and attractive investment proposition even at current lower oil prices."

StockMarketWire.com
Empyrean Energy reports record revenue and production for the year to the end of March.

It says this was driven by further improvements at the Marathon Oil-operated Sugarloaf AMI project (Empyrean 3% working interest), despite the fall in oil prices during the year.

Highlights:
- 15% increase in revenues for the 12 months to 31 March 2015 to US$16.010m (2014: US$13.884m)

- 2% decrease in net profit before tax for the 12 months to 31 March 2015 to US$5.122m (2014: US$5.221m)

- 9% increase in production net to Empyrean (after royalties) for the 12 months to 31 March 2015 to 366,469 barrels of oil equivalent (2014: 335,305 barrels of oil equivalent)

- Substantial increase in activity at Sugarloaf with 130 wells spudded (2014: 43 wells) and 84 wells brought into production during the period (2014: 39 wells)

Chief executive Tom Kelly said: "I believe we have made significant progress across many fronts in spite of one of the most challenging periods for all oil producers globally. We have increased revenues, been able to re-finance our participation in the flagship Sugarloaf AMI and are positioned to capitalise on the significant growth in reserves that has evolved from further successful delineation and appraisal of the Austin Chalk formation, which is being co-developed with the Eagle Ford Shale.

"From a value perspective, the indicated NPV10 of our 2P reserves has shown a solid increase from December 2013 to December 2014 despite the fall in oil prices and, importantly, we also have significant growth upside to unlock from further appraisal of the Upper Eagle Ford formation. Finally, we remain focussed on delivering a favourable outcome for shareholders from our portfolio and, in particular, the continued involvement in the Sugarloaf AMI."

StockMarketWire.com
Empyrean Energy has agreed to sell its interest in the Sugarloaf AMI development to Carrier Energy Partners II for an initial cash consideration of USD61,500,000.

The company may also receive up to a further USD10,000,000 depending on the New York Mercantile Exchange strip price of light sweet crude oil price.

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

CEP II is a Houston, Texas based private oil and gas company focused on the acquisition and exploitation of upstream assets. Backed with an equity commitment from Riverstone Holdings LLC, its primary objective is to partner with select operators that are developing both unconventional and conventional reservoirs in North America.

Empyrean will be entitled to additional payments:
- If the average New York Mercantile Exchange strip price of light sweet crude oil (WTI) for the calendar period of 1 January 2016 until 30 June 2016 or 1 July 2016 until 31 December 2016 exceeds USD55.00 per barrel, CEP II will pay an additional USD1,000,000 for every whole dollar in excess of USD55.00 per barrel (collectively, the 'first contingent payment'); provided, however, the first contingent payment shall not exceed US$5,000,000;

- If the average New York Mercantile Exchange strip price of light sweet crude oil (WTI) for the calendar period of 1 January 2017 until 30 June 2017 or 1 July 2017 until 31 December 2017 exceeds USD60.00 per barrel (the 'second contingency'), then CEP II will pay an additional USD1,000,000 for every whole dollar in excess of USD60.00 per barrel (collectively, the 'second contingent payment') provided the second contingent payment shall not exceed USD5,000,000. If there is no first contingency payment, this shall not preclude a second contingent payment if the second contingency is met. At 9:18am: (LON:EME) Empyrean Energy PLC share price was +1.75p at 6.75p.

StockMarketWire.com
Empyrean Energy's revenue, profit and production fell in the year to the end of March following the sale of the Sugarloaf AMI.

Profit after tax fell to US$0.913m from $1.747m a year ago.

Sugarloaf AMI production net to Empyrean (after royalties) for the six months to 30 September totalled 224,182 barrels of oil equivalent (2015: 366,469 barrels of oil equivalent).

Chief executive Tom Kelly said: "The sale of our flagship Sugarloaf AMI project in February 2016 for US$61.5m with the potential for contingency payments of up to a further US$10m if the oil price rises is an excellent deal for Empyrean under challenging market conditions.

"The sale has allowed us to repay our loan facility with Macquarie Bank Limited, pay all costs associated with the Sale and be debt free with surplus cash. In addition we took advantage of the low oil price in a timely fashion as the sale was nearing completion and closed out our hedging facility to generate a further US$1.582m.

"We have announced plans to complete a return of capital to shareholders, which is a priority, and will seek opportunities to maximise value for shareholders from our remaining assets."

StockMarketWire.com
Empyrean Energy has been awarded a permit for 100% of the exploration rights for Block 29/11 in the Pearl River Mouth Basin, offshore China, following a successful application to the China National Offshore Oil Corporation.

Empyrean will be the operator of the permit during the exploration phase.

Highlights - Excellent location - offshore permit located approximately 200km South East from Hong Kong in seabed depths ranging from 340-600m and directly South of a large producing field

- On trend with additional recent discoveries immediately to the West and South

- Two existing exploration prospects, Jade and Topaz, mapped with multi-vintage 2D seismic

- Upside potential - a further ten leads have also been mapped that require follow up exploration work

- Extensive permit area - approximately 1,800 sq km

- Work programme required for the first 24 months is anticipated to be funded by existing cash resources

- Empyrean will acquire and complete processing and technical evaluation of 500 sq km of 3D seismic data

Chief executive Tom Kelly said: "To have been granted a permit of this size and located on trend to existing large discoveries is a real coup for the Company which follows hot on the heels of our sale of the Sugarloaf AMI Project and subsequent return of value to shareholders. The permit represents a fantastic opportunity for Empyrean, given its significant resource potential and the presence of two large and relatively mature drilling prospects, Jade and Topaz.

"Therefore, we look forward to advancing these, as well as additional targets identified, alongside Gaz Bisht, who has a very thorough understanding of the region via his previous extensive work in the region.

"We also acknowledge and thank the CNOOC team for the consideration of our bid proposal and we look forward to working with CNOOC to unlock potential value within the Permit area."

4 directors buying, 2 putting a half decent chunk in, any thoughts?

I last held this stock in 2006.....so much has happened that I can't really recall why it all eventually went wrong. Possibly worth a bit more research

more likely, not worth the effort

StockMarketWire.com
Empyrean Energy has issued an update on its operations in China, Indonesia and the United States.

The company said that in China, its 3D seismic acquisition programme on block 29/11 was progressing well with approximately one-third of the acquisition complete.

It said the data collected so far had been of good quality.

Mako South-1 well Duyung PSC Indonesia: The company said it had been advised by Conrad Petroleum that the COSL Seeker jack-up rig had arrived on location for the drilling of the Mako South-1 well and was presently continuing to rig up in preparation for operations to commence within days.

It said a further announcement would be made when rigging up was complete and drilling operations began.

Sacramento Basin assets@ Empyrean said that Sacgasco Limited was in the final stage of finalising the farm-in agreement and JOA documents.

It said that as announced yesterday, Empyrean was required to pay US$10,000 upfront and then a further US$90,000 upon signing the farm-in and JOA documents for the Dempsey frospect and a further US$20,000 to reimburse Sacgasco for back costs and leasing of the Alvares prospect.

In addition, Empyrean was required to pay US$1,500,000 by today towards dry hole costs (i.e. up to the point of testing and running production casing or abandonment) of the Dempsey-1 well to earn its 25% working interest in the Dempsey prospect.

It said that if the Dempsey-1 Well costs exceed US$3,200,000 then Empyrean would pay 25% of any further costs under standard JOA terms.

Empyrean said it had paid US$10,000 under its agreement so far and Sacgasco had agreed that Empyrean would pay the balance of US$90,000 for the Dempsey deposit and US$20,000 for the Alvares deposit within three working days of signing the definitive farm-in agreement and JOA documents.

It had also been agreed that Empyrean would pay US$1,500,000 for the Dempsey consideration after the definitive farm-in agreement and JOA had been signed and within five working days of a cash call by Sacgasco to Empyrean prior to the drilling of the Dempsey-1 well.

Empyrean said it was fully funded to make the payments for the Dempsey and Alvares deposits and Dempsey consideration.

duster?

The issue isn’t it being a duster, controlling the extremely high pressures is the refreshing and exciting issue they faced. The gas will be the same source which is already being produced in their other wells throughout Sacramento

Eme have drilled in a prolific gas province meters away from the gas distribution station. Shallows and deeps all gas soaked over many zones under very high pressures.