17th Sep 2014 08:50
LONDON (Alliance News) - Empyrean Energy PLC Wednesday said production fell in the second-quarter from the first quarter, despite bringing further wells into production at its Sugarloaf AMI project.
Empyrean's total production for the quarter ended June 30 was 77,159 barrels of oil equivalent, 5.2% lower than first-quarter production of 81,398 barrels of oil equivalent. Average net production for the second-quarter was approximately 840 barrels of oil equivalent per day.
On September 15, there was 154 gross producing wells, eight of them producing from Austin Chalk, on its Sugarloaf AMI, in the Eagle Ford Shale, Texas.
"We are starting to see the relatively large inventory of drilled wells come in to production with 18 wells added to production in August alone and an intensive drilling programme planned with up to 100 wells targeted in calendar year 2014," said Chief executive Tom Kelly.
In addition, Marathon Oil Corp has supplied "further positive Austin Chalk results delineating a substantial acreage and number of future well locations for development," said Kelly.
As a result, its 2C Contingent Resource declared in May of 3.87 million barrels of oil equivalent "does not account for recent, successful down spacing initiatives or production profiles from wells in production since December 31, 2013," said the company.
"These developments have further highlighted our belief that this can be moved into 2P reserves in the short term," added Kelly.
Empyrean's shares were untraded Wednesday. The stock last traded at 18.30 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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