Proactive Investors - Run By Investors For Investors

Empyrean Energy waits to see Sugarloaf drill schedule

Empyrean Energy waits to see Sugarloaf drill schedule

Empyrean Energy (LON:EME) tempered expectations among investors as it clarified that it has not yet received a drill schedule from Marathon Oil, the operator of the Sugarloaf project.

In response to a statement from Australian oil firm AWE, a fellow Sugarloaf stakeholder, which refers to a 100 to 110 well drill programme at the project in 2014, said that Marathon had only provided indicative guidance that it may drill that number of wells.

“At this stage, Empyrean has not received a drilling schedule for 2014 from Marathon, nor details of the well locations or targeted formations,” Empyrean said in a stock market statement.

“In line with the company's standard practice, Empyrean expects to provide further guidance once a detailed drilling schedule is received from the operator.

“The well count guidance released by AWE should be regarded as indicative only at this stage and is subject to further review.”

The AIM quoted firm told investors that Marathon’s present guidance indicates there will be a significant rise in the number of well drilled in next year compared to 2013, when 48 wells were drilled.

“Empyrean believes that an accelerated drilling pace, in conjunction with the tighter spacing regime, will have a positive impact on reserves and production, especially if Marathon is able to achieve its stated well cost targets,” the company added.

AWE owns a 10% interest in Sugarloaf, whilst Empyrean has 3%.

Why Invest In Empyrean Energy? Read More Here

Register here to be notified of future EME Company articles


Related Articles

May 26
The proposal represents "an attractive replacement funding", Range says
March 30

Shares in Windar Photonics felt the breeze behind them as they raced to a premium on their first day of trading on AIM.

May 15
"While we have taken the prudent decision to cut back on capital expenditures during this time of low oil prices, many of the company's Bone Spring properties could deliver acceptable rates of return at current price levels,” said CEO Mike Ford.

© Proactive Investors 2015