Empyrean Reports Production Decrease at Sugarloaf

Junior energy firm Empyrean Energy reported Thursday a two percent production decrease at its Sugarloaf project in Texas.

Total production rates for Q1 at the Sugarloaf project in the Eagle Ford Shale were 109,425 barrels of oil equivalent, which represented a slight decrease compared to the Q4 2014 figure of 111,921 boe. Average daily production from Sugarloaf was also down from 1,217 boe in Q4 2014 to 1,216 boe in Q1 2015.

Despite the production decrease, the number of gross producing wells at Sugarloaf increased in Q1 2015 by 18 wells to 205.

Empyrean CEO Tom Kelly commented in a company statement:

"Production from Sugarloaf continues to be economic even at current oil prices and has been maintained at steady rates, notwithstanding lower levels of drilling activity in the current, challenging oil price environment. The project has also benefited from cost reductions and continued optimisation initiatives during the quarter.  Despite the challenges the sector faces, we have a healthy inventory of drilled wells to be placed into production in the coming months."

Empyrean has a three percent working interest in the Sugarloaf project, which is operated by Marathon Oil Company, a subsidiary of Marathon Oil Corporation.