Trading Statement

RNS Number : 8133H

Empyrean Energy PLC

03 June 2011

 

03 June 2011

Empyrean Energy PLC

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

TRADING UPDATE

Month on month revenue achieves strong growth

Empyrean is pleased to provide the following update on revenue from oil and gas production operations for the last six months:

Revenue from the company's USA based production assets including the Sugarloaf Project, Hercules Project and Riverbend Project over the last six months totals US$1,074,160.19 and is represented on a month by month basis in the following table;

MONTH	REVENUE(US$)
DECEMBER	27,818.39
JANUARY	86,863.09
FEBRUARY	220,617.57
MARCH	239,576.26
APRIL	200,336.97
MAY	298,947.91
TOTAL	US$1,074,160.19

 Generally speaking, the revenue received in any given month relates to production accumulated from approximately two months earlier. That is, there is a lag between production sales and revenue received and this varies between projects and also varies according to whether the sales were from oil or from gas.

There has been a significant increase in revenue by month over the last six months and this has predominantly been due to revenue increasing from the Sugarloaf Project as newly completed wells are brought into production.

The Sugarloaf Project is now firmly into a development phase and this upwards trend in revenue is expected to continue as further wells are brought into production.

Commenting today, Empyrean CEO - Tom Kelly said "We are delighted by the strong growth in revenue kicking in over the last six months. This is expected to grow as we know that during the last few months a number of further wells have been brought into production for which we have not yet received revenue. We believe that these wells coming into production is likely to have a positive impact on the implications for our proven and probable reserves position. Given that we received revenue in April from only 5 wells at Sugarloaf and the full development currently is targeting 280+ wells, we believe we have room for continued revenue growth."

Contact:

Empyrean Energy Plc
Tom Kelly                                                                    Tel: [phone]

Shore Capital & Corporate Limited
Anita Ghanekar                                                            Tel: [phone]
Edward Mansfield

 

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