Earnings Release • Feb 4, 2013
Earnings Release
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National Storage Mechanism | Additional information
RNS Number : 0217X
Empyrean Energy PLC
04 February 2013
GENERAL TEXT AMENDMENT
The following clarification and amendments have been made to the 'Production and Operational Update' announcement released on 01/02/2013 at 10.32 under RNS No 9181W.
Clarification
Empyrean wishes to provide the following replacement RNS in place of the RNS released 1 February 2013. The Company clarifies that the reference to cash receipts below, refers only to those receipts that have been notified to the Company during the 3 months to 31 December 2012 and includes revenue that relates to production from prior months. The Company also clarifies that the reference to unaudited accounting revenue is based only on a reconciliation of the cash receipts for the 3 months to 31 December 2012 and does not include any accruals. The Company is also aware that some revenue for the 3 months to 31 December 2012 is yet to be received - this is based upon a reconciliation between production data received by the Company for the 3 months to 31 December 2012 and cash received attributable to the production for the same period. In summary, the Company has not yet received all revenue from the production for the 3 months to 31 December 2012 as at today's date, this is commonplace due to the lag between the production of hydrocarbons and the sales associated with that production which can occur some months later.
Amendments / Additional text
1. The duplicate "Mobil A 2H" has be re-named Jordan 3H
2. The following text in bold has been added:
As at the end of December 2012 Empyrean had 62 wells that were producing at the Sugarloaf Project on acreage operated by Marathon. In addition there was 1 well drilling ahead and a further 3 wells awaiting or in the process of having completion/ stimulation operations carried out. A total of 68 wells were producing during the 3 months to December 2012 - wells that were not reported as producing on 31 December 2012 (due to a variety of reasons including down time to have remedial operations carried out and so were not included in the figure of 62 producing wells above).
3. The following text in bold has been added:
Unaudited accounting revenue for the 3 months to 31 December 2012 was calculated by the board at US$1,370,395.72. This is revenue attributable to those 3 months **based only on a reconciliation of the cash receipts for the 3 months to 31 December 2012 and does not include any accruals. Cash receipts attributable to production and received during the 3 months to 31 December 2012 totalled US$2,593,106.53. This is cash received during those 3 months but includes revenue that relates to production from prior months.
All other details remain unchanged.
The full amended text is shown below.
Sugarloaf Project: Onshore Texas, USA
Production and Operational Update
Highlights
· Unaudited accounting revenue**, calculated from a reconciliation of the cash receipts below, of US$1,370,395.72 for the 3 months to 31 December 2012 and excluding any accruals for cash from sales that is expected but not yet received
· Cash receipts*** of US$2,593,106.53 attributable to production and received during the 3 months to 31 December 2012
Production
The following is a summary of 30 and 60 day production data recently received for the following wells at the Sugarloaf Project:
| Working Interest | Total Gas Production (mmscf) | Total Condensate Production (bbls) | Average Daily Equivalent Oil Rate (boe/d)* | |
| Davila Graham 1H - 60 day | 3.0% | 58.1 | 17,390 | 451 |
| Davila Graham 1 2H - 60 day | 3.0% | 97.5 | 32,073 | 805 |
| Bailey Retzloff 1H - 60 day | 3.0% | 125.3 | 28,330 | 820 |
| Bailey Retzloff 2H - 60 day | 3.0% | 149.0 | 26,681 | 859 |
| Bailey Retzloff 3H - 60 day | 2.9105% | 153.6 | 30,758 | 939 |
| Brysch Adams 2H- 30 day | 3.0% | 30.3 | 25,456 | 1017 |
| Brysch Adams 3H- 30 day | 3.0% | 36.9 | 28,211 | 1145 |
| Gross McLean 1H - 30 day | 2.03% | 83.1 | 22,267 | 1204 |
| Gross McLean 2H - 30 day | 2.03% | 101.9 | 23,894 | 1363 |
| Mobil A 1H - 30 day | 3.0% | 10.8 | 30,516 | 1077 |
| Mobil A 2H - 30 day | 3.0% | 24.9 | 26,970 | 1037 |
| Jordan 3H - 30 day | 3.0% | 51.4 | 14,915 | 783 |
| Wielding Weston 1H - 60 day | 3.0% | 100.9 | 35,207 | 867 |
*The wells have had the Average Daily Equivalent Oil Rate recalculated on a simple 6:1 basis.
Further production results will be released as they come to hand.
Operations
As at the end of December 2012 Empyrean had 62 wells that were producing at the Sugarloaf Project on acreage operated by Marathon. In addition there was 1 well drilling ahead and a further 3 wells awaiting or in the process of having completion/ stimulation operations carried out. A total of 68 wells were producing during the 3 months to December 2012 - wells that were not reported as producing on 31 December 2012 (due to a variety of reasons including down time to have remedial operations carried out and so were not included in the figure of 62 producing wells above).
During calendar year 2012 a total of 52 wells were spudded, and 44 of those were brought on to production. Marathon has recently indicated that the drilling schedule for calendar year 2013 is likely to be reduced and subject to further change.
Unaudited accounting revenue for the 3 months to 31 December 2012 was calculated by the board at US$1,370,395.72. This is revenue attributable to those 3 months **based only on a reconciliation of the cash receipts for the 3 months to 31 December 2012 and does not include any accruals. Cash receipts attributable to production and received during the 3 months to 31 December 2012 totalled US$2,593,106.53. This is cash received during those 3 months but includes revenue that relates to production from prior months.
Previously announced initiatives to test the viability of closer drill spacing and also adding production from additional horizons to the existing Eagle Ford Shale production, including the Austin Chalk are ongoing. Results from these initiatives are expected to start coming through in the first half of 2013.
Commenting today, Empyrean CEO - Tom Kelly stated, "Empyrean continues to be encouraged by the strong production numbers coming through on new wells. We look forward to the results of closer spacing and the testing of production from additional horizons. Success on any of these initiatives is potentially transformational for the value of Empyrean's Sugarloaf asset."
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.
For further information
Empyrean Energy plc
Tom Kelly
+618 9480 0111
Shore Capital
Anita Ghanekar
Edward Mansfield
+44 (0) 207 408 4090
Jonathan Charles
Lionsgate Communications
E: [email protected]M: +44 (0)7791 892509
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 48.5% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California.
Empyrean's portfolio includes an interest in over 60 producing wells with scaleable growth potential from further development and exploration updside.
This information is provided by RNS
The company news service from the London Stock Exchange
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