EMPYREAN ENERGY PLC

Earnings Release • Feb 1, 2013

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 9181W

Empyrean Energy PLC

01 February 2013

1 February 2013

Empyrean Energy PLC

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

Sugarloaf Project: Onshore Texas, USA

Production and Operational Update

Highlights

·    Unaudited accounting revenue estimated at US$1,370,395.72 for the 3 months to 31 December 2012

·    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
Mobil A 2H - 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 one well drilling ahead and a further three wells awaiting or in the process of having completion/ stimulation operations carried out.

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 from the 65 wells previously planned to be drilled at the Sugarloaf Project during 2013. The drill program may be subject to further change by Marathon.

Unaudited accounting revenue for the three months to 31 December 2012 was estimated by the board to be US$1,370,395.72. This is revenue attributable to those three months. Cash receipts attributable to production and received during the three months to 31 December 2012 totalled US$2,593,106.53. This is cash received during those three months but attributable to revenue generated in months prior.

Previously announced initiatives to test the viability of closer drill spacing and exploitation of the Austin Chalk and other horizons, potentially adding reserves and increasing production from the Eagle Ford Shale, 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: jcharles@lionsgatecomms.com

M: +44 (0)7791 892509 

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 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

END

MSCNKDDNKBKDDBK