As Marathon Oil pushed on with expansion drilling at the Sugar Loaf field, Empyrean's AIM shares have soared to highs above 20p from 6p.
Big picture - Why invest in Empyrean Energy
Empyrean Energy Snapshot
Empyrean Energy plc is an oil and gas explorer and producer listed on the London Stock Exchange AIM market.
Empyrean was established to finance the exploration, development and production of energy resource projects in geopolitically stable environments.
Empyrean's current core asset is a working interest in the Sugarloaf Project in Texas which is an advanced Eagle Ford Shale condensate and gas development operated by Marathon Oil Company.
Empyrean has a strong management team, with many years experience in both the global investment and energy industry. The company is currently involved in four projects and continues to pursue other exciting energy opportunities.
Within a short period of time, Empyrean has proven its ability to identify, analyse, negotiate and fund excellent projects with an appropriate mix of risk versus reward. Empyrean will continue to balance out its portfolio of projects with a continual review of opportunities globally. Empyrean has typically participated in late stage exploration and can fast track the process from identification of a suitable project through to funding and drilling.
The Company is currently involved in several projects, being:
- Sugarloaf, Hosston
- Riverbend, Texas
- Eagle Oil, California [48.5% working interest]
PROJECTS: SUGARLOAF PROJECT, TEXAS USA
(Original EME Interest between 3%-9%)
Empyrean entered the original farm-in agreement with Houston based Texas Crude Energy Inc ("TCEI") on 6 April 2006. The Sugarloaf-1 well intercepted secondary objectives, including both the Austin Chalk and underlying Eagle Ford Shale, which are the gas-condensate producing reservoirs of the Sugarkane Field, the discovery well of which lies 6.6 km to the west of Sugarloaf-1.
The Sugarkane Field has potential recoverable reserves of more than 3 trillion cubic feet of gas and 500 million barrels of condensate. Its extent encompasses Blocks A and B in which Empyrean holds interests.hal
Empyrean had participated in the drilling of 4 wells in Block A and 4 in Block B prior to the farmin to Block B by Hilcorp Energy Company in 2009.
Initial estimates indicate the potential recoverable reserves attributable to each producing well could lie between 2-10 billion cubic feet of gas equivalent.
On the 21 September 2009 Empyrean Energy announced that TCEI, the operator of Block B, had been successful in its efforts to farm-out Block B to Hilcorp Energy Company ("Hilcorp"), the fourth largest private E&P company in the USA. Hilcorp successfully re-stimulated 3 existing Sugarloaf horizontal wells and drilled 3 new wells at 100% their cost to earn a 50% interest in Block B.
Marathon Oil as the new operator has since embarked on an accelerated drilling programme. A continuous development programme in which the drilling of at least 230 wells is envisaged.
For more information please click here
PROJECTS: RIVERBEND PROJECT, TEXAS USA
(EME Interest 10%)
Empyrean Energy announced on the 1 June 2009 that it had entered into a Participating Agreement with Krescent Energy Partners11, LP of Houston Texas ("Krescent") to acquire a 10% working interest in Krescent's Riverbend Project.
The Project Area is located in the Tyler and Jasper Counties. The Area is also ideally located south of the prolific Brookeland Field (Austin Chalk).
The project has a mean estimated potential of 80 billion cubic feet of gas equivalent. The project targets primarily the Austin Chalk and Saratoga formations.
An unsuccessful attempt in 2010 to re-enter the highly-pressured Austin Chalk reservoir of Quinn 3-H was followed by the successful drilling of the Cartwight No1 well in the same year. The well is at present producing gas and minor condensate from the Austin Chalk .
PROJECTS: EAGLE OIL POOL DEVELOPMENT, CALIFORNIA USA
(EME Interest 48.5%)
The Eagle Oil Pool Development Project is located in the San Joaquin Basin, southern California. It is a proven oil and gas province and has produced in excess of 12 billion barrels and 11 trillion cubic feet of gas. The project area covers approximately 4300 acres.
The primary target is the Gatchell Sand Member of the Eocene Lodo Formation. It is estimated that the Eagle Oil pool has mean (P50) recoverable reserves of 7.1 million barrels of oil and 12.3 billion cubic feet of gas.
Empyrean Energy Plc increased its interest from 38.5 % to 48.5% when original operator, ASX-listed Victoria Petroleum NL, was replaced by the American company, R&M Oil & Gas in 2009. Subsequently, Strata-X, Inc has become operator of the project.
The Eagle North -1 well drilled in 2006 encountered oil but was abandoned due to technical problems. The results of a drilling programme at present underway in adjacent acreage could influence future seismic configuration if the expected geological objectives in addition to the Gatchell Sand Member are encountered .
Dr Patrick Cross - Non Executive Chairman
Dr Cross has international experience in corporate finance, organisation structures, marketing and joint venture operations. His previous positions include 25 years with BP specialising in marketing, strategic planning and business development across different cultures. He also worked for two years as President of Cable & Wireless Japan, and six years as Managing Director of BBC World Ltd. Patrick has operated in South America, Asia, Europe and the United Kingdom establishing relationships at senior levels with major companies, Governments and the European Commission. He is non-executive chairman of Mercom Oil Sands plc and was a non-executive director of Orca Interactive Limited until that company was successfully sold in 2008.
Tom Kelly - CEO/ Director
Mr Kelly has had more than 17 years corporate, finance and investment banking experience. During this period, Tom has had involvement in and been responsible for the financing of numerous listed companies on the Australian Securities Exchange (ASX) and several mergers and acquisitions within the Australian corporate sector. He is a Senior Associate of the Financial Services Institute of Australasia.
Frank Brophy - Technical Director
Mr Brophy has over 44 years experience as a petroleum geologist in the exploration, development and production of many world class projects. His roles have seen him involved in operations around the world, including Australia, Asia, Europe, USA and the Middle East. More recent overseas activities include four years as General Manager of the Hanoi operation in North Vietnam, for France based company Maurel & Prom, and almost two years in Sicily representing the same company in gas appraisal and development. Frank's previous positions also include his former role as Manager of International Business Development for Ampolex Limited, Chief Geologist of Elf Aquitaine Australia and Exploration Manager for five years with Peko Oil Limited. He is currently a non-executive director of ASX listed Golden Gate Petroleum Ltd.
John Laycock - Financial Director
Mr Laycock has over 30 years experience in accounting, finance and risk management. His previous positions include 22 years with BP both in UK and international experience in France and Japan. John has a degree in Mechanical Engineering from Bristol University and is a Chartered Management Accountant. He is based in the UK and currently works for an electricity generating company.
Amanda Wilton-Heald - Company Secretary & Financial Controller
Mrs Wilton-Heald is a Chartered Accountant with over eleven years of experience within Australia and the UK. Mrs Wilton-Heald has six years experience as an auditor, where she was involved in the audit of ASX listed and LSE listed company Financial Statements. Mrs Wilton-Heald has five years accounting experience with a UK AIM listed company specialising in the provision of collaboration technology. Mrs Wilton-Heald has been involved in the listing of junior explorer companies on the ASX and has experience in corporate advisory and company secretarial services. Mrs Wilton-Heald is currently Company Secretary of ASX Listed Cortona Resources Limited, Jacka Resources Limited and Potash West NL.
- 216,282,073 ordinary shares of 0.2p each
- 65,975,000 unlisted options on issue
- Nil shares held in treasury
There are no restrictions on the transfer of the ordinary shares.
The percentage of AIM securities that is not in public hands (as defined in AIM rules): 75.08%*.
* of this figure 15.02% is held by TD Direct Investing Nominees (Europe) Limited and 10.80% is held by Vidacos Nominees.
- 15.02% TD Direct Investing Nominees (Europe)
- 10.80% Vidacos Nominees
- 9.92% Barclayshare Nominees
- 9.59% Thomas Kelly
- 7.12% LR Nominees
- 4.18% HSBC Client Holdings Nominees (UK)
- 3.84% HSDL Nominees
- 3.52% Dartington Portfolio Nominees
Principal Business Office
108 St Georges Terrace
GPO Box 2517
Shore Capital and Corporate Limited
Shore Capital Stockbrokers Limited
Auditors & Reporting Accountants
Chapman Davis Ltd
2 Chapel Court
Solicitors to the Company
Kerman & Co LLP
34 Beckenham Road,
BR3 4 TU
Tel: 0871 664 0300
Calls cost 10p per minute plus network extras.
Lines are open 8.30am to 5.30pm Mon- Fri
Tel Overseas: +44 208 639 3399