Empyrean Energy's US oil and gas revenues jump 55pct
Empyrean Energy (LON:EME) saw revenues from its production assets in the US jump 55 percent to US$1.68 million in the six month period to end November compared to the prior six months.
Investors cheered the update, sending shares in Empyrean up 7.5 percent to trade at 5.38 pence, giving the company a market cap of £11 million.
These assets include Empyrean's Sugarloaf, Hercules and Riverbend projects. Empyrean told investors that Sugarloaf is now firmly into a development phase and this upward trend in revenue is set to continue as further wells are brought into production.
There are currently 24 wells on production on Sugarloaf that Empyrean has an interest in, including 6 farmout wells. The project is currently operated by Marathon Oil.
Only yesterday Empyrean revealed that former operator Hilcorp said the cost recovery mechanism on the farmout pool of 3 new Sugarloaf wells has been repaid and that Empyrean will participate in the revenue from those wells from October.
The company noted that there is a lag between production sales and cash received as oil and gas sales in any month relate to production from around two months earlier.
Gross production from Sugarloaf reached 230,973 barrels of oil equivalent in November. Empyrean noted that the November output data does not reflect the production capacity of the field as a number of wells were shut in during the month to allow the installation of production tubing.
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