Empyrean Expects Further Upside from Sugarloaf AMI Project in 2016

Onshore US-focused junior oil firm Empyrean Energy’s latest set of results indicate that it is set to enjoy further upside at its Sugarloaf AMI project located in the Eagle Ford shale, Texas.

In half-year results released Thursday, Empyrean said there was a major upgrade to reserves and resources at Sugarloaf during the six months to September 30, 2015 so that its 1P reserves at the project have been valued at $45.7 million and 2P reserves are valued at approximately $136m million. Production during the period amounted to 224,182 barrels of oil equivalent net to the company.

Empyrean holds a three percent interest in the Sugarloaf AMI project, which is operating by US independent firm Marathon Oil. Marathon has spud 335 wells at Sugarloaf to date, with 81 wells in production at the project as of November 30.

Empyrean said that it expects to see between 80 and 100 wells drilled at Sugarloaf in 2016.

Commenting on the results, Empyrean CEO Tom Kelly said:

“We have added significant value to our flagship Sugarloaf AMI during the six months under review. In July 2015 we announced that between December 31, 2013 and December 31, 2014, our proven reserves (1P) had increased by 63 percent to 5.78 million barrels of oil equivalent while our probable reserves had improved by 130 percent to 6.86 MMboe. Add to this our further reserves increase reported in October 2015, effective to 30 June 2015, which brought our 1P reserves to 6.58 MMboe, and a 9.77-percent increase in probable reserves to 7.53 MMboe, the significant scale of our project is very clear.

“Marathon remains committed to developing the Sugarloaf AMI. 58 wells were spudded during the period in total, with an increased proportion drilled to the Austin Chalk formation. Appraisal of the Upper Eagle Ford Shale is developing positively and results to date are reflective of the Lower Eagle Ford Shale, which has been our main target to date. Considering the reduced drilling costs, and the increased production rates, we believe the Sugarloaf AMI is well positioned for growth in 2016.”



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  NOPSEMA Seeks More Details on BP's Gre... (Sep 29)
 -  WFS Appoints IMEC as Agent in Malaysia... (Sep 29)
 -  Oil Industry Teams Up to Fight Cyber-C... (Sep 29)
 -  Council Officials Recommend Approval f... (Sep 29)
 -  Maersk Oil Begins Culzean Drilling Cam... (Sep 29)


Most Popular Articles

From the Career Center
Jobs that may interest you
Entry Level, Staff or Senior Engineer - Tolk Station Job
Expertise: Engineering Manager|Project Engineer
Location: Earth, TX
 
Marine Electrician Helper
Expertise: Electrician|Rig Electrician
Location: Port Fourchon, LA
 
Manager- Retail Power Settlements & Accounting
Expertise: Accounting|Budget / Cost Control|Gas Plant Operations
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $48.69/BBL 5.91%
Light Crude Oil : $47.05/BBL 5.32%
Natural Gas : $2.952/MMBtu 1.60%
Updated in last 24 hours