Sugarloaf: Hedging contract with Macquarie Bank

RNS Number : 8163K

Empyrean Energy PLC

02 August 2013

 

2 August 2013

Empyrean Energy PLC

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

Sugarloaf Project: Onshore Texas, USA

Hedging contract with Macquarie Bank Limited

Empyrean Energy Plc (Ticker: EME), the AIM-listed condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA, is pleased to provide the following information on a hedging program commenced to provide oil price certainty on part of expected production from its Sugarloaf Project for 12 months:

Empyrean has entered into a Commodity Swap Transaction ('SWAP") with Macquarie Bank Limited ("Macquarie") for 50,765 Barrels of Oil ("BBL") for a 12 month period commencing 1 September 2013 monthly through to 1 August 2014. The SWAP is for a fixed price per BBL of US$95.90 based on OIL-WTI-NYMEX.

For each calculation period monthly in the table below, which is the period from and including the period start date to and including the next following period end date, if the fixed price exceeds the floating price or spot price for WTI, Macquarie shall pay Empyrean the difference multiplied by the relevant notional quantity for the calculation period. If the floating price or spot price exceeds the fixed price, Empyrean shall pay Macquarie the difference multiplied by the relevant notional quantity for the calculation period.

Calculation Period Table:

Period Start Date	Period End Date	Notional Quantity per Calculation Period
01 September 2013	30 September 2013	5,334 BBL
01 October 2013	31 October  2013	5,206 BBL
01 November 2013	30 November 2013	4,778 BBL
01 December   2013	31 December 2013	4,700 BBL
01 January 2014	31 January 2014	4,485 BBL
01 February 2014	28 February 2014	3,883 BBL
01 March 2014	31 March 2014	4,130 BBL
01 April 2014	30 April 2014	3,843 BBL
01 May 2014	31 May 2014	3,824 BBL
01 June 2014	30 June 2014	3,570 BBL
01 July 2014	31 July 2014	3,565 BBL
01 August 2014	31 August 2014	3,447 BBL

This SWAP contract was negotiated on the 31 July 2013 and confirmed on 1 August 2013.

Commenting today, Empyrean CEO, Tom Kelly said "Empyrean has taken advantage of recent strength in the WTI oil price to lock in prices for a portion of its expected oil production for the next 12 months. The hedging is really a form of insurance. The board believes that this initial hedging program is conservative and prudent given the recent rise in WTI oil price and the Company's debt facility with Macquarie Bank."

For further information

Empyrean Energy plc 

Tom Kelly

[phone]

Shore Capital

Anita Ghanekar

Edward Mansfield

[phone]

Jonathan Charles

Lionsgate Communications

E: [e-mail]
M: [phone] 

www.lionsgatecomms.com 

Notes to Editors:

Empyrean Energy Plc is an AIM listed (Ticker : EME) condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA. Other assets include a 10% working interest in the Riverbend Project, Texas, just north of the prolific Brookeland Field (Austin Chalk) as well as a 57.2% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California.

Empyrean's portfolio includes an interest in over 91 producing wells with scaleable growth potential from further development and exploration upside.

 

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