Empyrean Energy

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

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.