20th May 2014 13:45
LONDON (Alliance News) - Empyrean Energy PLC Tuesday said that the reserves and resources at the Sugarloaf AMI shale asset in Texas had been significantly increased in an independent appraisal and report prepared by DeGolyer & MacNaughton.
The company has a 3% working interest in the project, which is operated by Marathon Oil Corp.
In a statement, Empyrean said the proven reserves had been raised 54% to 3.54 million barrels of oil equivalent and probable reserves up 43% to 2.98 million barrels of oil equivalent.
The net present value of the 1P reserves have been valued in the report at about USD52.9 million, while the value of 2P reserves are valued at about USD97.0 million and the 3P reserves at about USD139.5 million.
"The upgraded Reserves have come on the back of success from optimisation initiatives such as well down spacing, pad drilling, new improved fraccing techniques, reduced drilling and completion cycle times and recovery from recent wells outperforming earlier wells," Empyrean CEO Tom Kelly said.
"The net present value calculations further confirm the board's observations that the Sugarloaf AMI is an excellent high value asset that is demonstrably in demand given recent transactions both within the greater field and the Sugarloaf AMI acreage itself," he added.
Empyrean Energy shares were down 0.3% at 15.82 pence Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Empyrean