Empyrean Energy (LON:EME) revealed it had net production of 108,849 barrels of oil equivalent in the second quarter from the Sugarloaf project in the ‘sweet spot’ of the Eagle Ford play, in Texas.
With a 3% stake the AIM quoted firm is a minority partner in the Marathon Oil operated project.
Its share of production in the three months, to June 30, equated to 1,196 boepd which is broadly in line with the 1,216 boepd comparison for the preceding quarter.
The company added that operations had been impacted by major flooding in March, April and May.
The production stats come from 231 wells at the project – though since the end of June the well tally has now reached 241 – and at the end of the quarter there was an inventory of 58 new wells that were at various stages of development.
During the period there was a significant upgrade to reserves. Proven reserves (1P) increased 63% to 5.78mln boe whereas proved and probable (2P) rose 94% to 12.64mln boe.
Also it noted that another Sugarloaf partner had revealed an in-house (i.e. not independently verified) reserves update which when applied to Empryrean’s 3% stake suggests some 14.4mln barrels of 2P.
"This has been a successful quarter which has seen us report a dramatic increase in our reserves at Sugarloaf and deliver consistent production despite some disruptions due to flooding in Texas,” said chief executive Tom Kelly.
“A positive development in this current oil and gas environment is that costs are continuing to come down.”
Attentions are currently on the ‘upper’ Eagle Ford reservoirs where, according to Kellly, there is “exciting potential” for potential reserves.
“More data will be required to convert the Upper Eagle Ford into reserves, however we are encouraged by the early results,” he added.
“Over the coming months, this initiative will be advanced and further new wells will be put on to production, as we focus on extracting further value from this excellent Project, located in the 'sweet-spot' of the Eagle Ford Shale."