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Empyrean Energy upbeat over Sugarloaf reserves

Published: 09:04 23 Dec 2015 GMT

TexasFlag
Marathon increased the number of wells in production by 20 to 251 by end September, a number that has since risen to 290

Empyrean Energy's (LON:EME) share of  production at the Sugarloaf project in the Eagle Ford Shale, Texas, rose by almost 6% in the latest quarter.

Marathon Oil operates the project and Empyrean has a 3% working interest.

Production in the three months to September rose by 5.6% to 114,982 boe with a 4.5% increase in average daily production to 1,250 boe net to Empyrean.

Marathon increased the number of wells in production by 20 to 251 by end September, a number that has since risen to 290 including 51 in the overlying Austin Chalk formation.

A further 26 wells are being drilled or in various stages of completion.

Drilling and completion costs fell, with recent completed well costs ranging between US$5.5 - 6.0 mln

Tom Kelly, chief executive, said:  "Q3 has seen an increase in production at Sugarloaf whilst costs have continued to fall against a backdrop of very challenging oil prices.  

"A significant number of Austin Chalk wells have come into production and the Upper Eagle Ford continues to be appraised with early typical production type curves from both formations performing similarly to Lower Eagle Ford wells.

"Following a dramatic increase in our 1P and 2P reserves as reported in Q2, the continued appraisal of the Upper Eagle Ford for co-development with the Lower Eagle Ford and Austin Chalk bodes very well for potential future reserve increases at Sugarloaf."

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