27th Jun 2014 10:29
LONDON (Alliance News) - Empyrean Energy PLC Friday warned that data used in its annual accounts will reduce the levels of production from its wells at the Sugarloaf AMI project in Texas during the first quarter of its financial year when compared to a statement released by the company on Wednesday.
Empyrean Energy is an US onshore oil, gas and condensate exploration, development and production company with assets in Texas and California. The company holds a 3% working interest in its flagship Sugarloaf AMI project in the Eagle Ford Shale in Texas. The project is operated by Marathon Oil Company, a subsidiary of US company Marathon Oil Corporation.
On Wednesday, the company said its average production for the three month period was around 960 barrels of oil equivalent per day net to the company, with aggregate net production of 86,367 barrels of oil, a 78% increase compared to the comparable quarter last year.
However, Empyrean said on Friday that the estimates were approximate, rounded and subject to change as sales are completed and volumes are reallocated to the wells.
As such, the company said that in its annual accounts, it will use data from Marathon Oil Co, to establish the exact revenues and production rates and noted that this has led to a reduction in its expectations.
Empyrean said that using the new data, its total production for its first quarter is 81,299 barrels of oil equivalent rather than its previously reported 86,367 barrels of oil; the new data still shows a 68% increase on the previous years figures.
It also said that its average production for the three month period was around 903 barrels of oil equivalent per day rather than the previously reported 960 barrels per day.
There are currently 10 wells drilling and 21 wells undergoing completion operations in the Sugerloaf AMI, whil Marathon Oil Corp are still targeting to drill approximately 100 gross wells on the project during 2014.
Empyrean shares were down 5.1% to 17.20 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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