Increased Interest at Eagle Oil Pool Project

RNS Number : 2301S

Empyrean Energy PLC

22 September 2014

 



Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil & Gas

22 September 2014

Empyrean Energy PLC ('Empyrean' or 'the Company')

Increase in Working Interest at Eagle Oil Pool Development Project

San Joaquin Basin, California

Empyrean Energy, the profitable US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California, is pleased to announce that following a surrender of a minor interest in the Eagle Oil Pool Development Project ('the Project') by a partner, Empyrean's working interest has increased from 57.2% to 58.084%.  The other remaining partners in the Project are Strata-X, Inc with 23.952% and Lakes Oil Company with 17.964%.

Background Information on Eagle Oil Pool:

The Project area consists of approximately 5,000 gross acres.  Exxon drilled a well in 1985 which was abandoned and Royal Resources took over the well in 1986 and deepened it, encountering good oil shows in the Eocene Age Gatchell sands at an approximate depth of 13,200 feet.  Test rates of up to 192 BBL/d and 427 mcf/d were reported.  Approximately 10,000 BBL/d of light oil were recovered but the well was considered to be non-commercial, likely due to formation damage by heavy drilling mud and cement squeezing.  Subsequent activity on the prospect was met with mechanical issues despite continuing indications of oil shows in the primary target.  The Gatchell sands have produced over 1 billion barrels of oil in the Coalinga area approximately 20 miles west and north-west of the Eagle Oil Pool acreage.  The Company believes that the Eagle Oil Pool Development Project offers exposure to significant upside and will progress its development in consultation with its project partners.

**ENDS**

For further information please visit www.empyreanenergy.com or contact the following:

Tom Kelly	Empyrean Energy plc	Tel: [phone]
Neil McDonald	Cenkos Securities Plc	Tel: [phone]
Nick Tulloch	Cenkos Securities Plc	Tel: [phone]
Hugo De Salis	St Brides Media & Finance Ltd	Tel: [phone]
Elisabeth Cowell	St Brides Media & Finance Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: [phone]

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.

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 24,000 gross acres centrally positioned in the liquids rich sweet-spot within the field.  Empyrean has an interest in 154 gross producing wells with  

full development expected to reach over 770 wells. Further development of the Eagle Ford Shale anticipated to require in the order of a further 300 wells, with down spacing potential of a further 200 wells.  Further development of the Austin Chalk anticipated to require in the order of a further 300 wells, with down spacing potential of a further 235 wells 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 58.084% 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.

 

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