Regulatory Filings • Aug 2, 2013
Regulatory Filings
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information
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
+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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGRGDIIGGBGXD
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.