Empyrean Energy sees significant potential at Sugarloaf

8th Sep 2014 09:46

US oil & gas explorer Empyrean Energy said one of its oil fields was showing signs of being transformational as it unveiled record annual financial and production results.US oil & gas explorer Empyrean Energy said one of its oil fields was showing signs of being transformational for the company as it unveiled record annual financial and production results.The group, which has assets in Texas and California, said the Austin Chalk formation at its Sugarloaf AMI project in Texas was showing significant potential, although further development of about 300 wells was needed.Empyrean is planning an intensive drilling programme this year with 100 wells targeted. The group reported a 51% rise in revenue in the year to March 31 to $13.9m and an 83% increase in net profit to $5.2m.It reported a substantial increase in activity at Sugarloaf with 43 wells spudded and 39 wells entering production in the period.On July 10, the company announced a strategic review and formal sales process to maximise shareholder value. Macquarie Capital is advising the group on the sale and Empyrean said it would update investors in due course.Chief executive Tom Kelly said: "Potentially significant reserves upside exists within both the Eagle Ford Shale and the Austin Chalk, with the latter showing signs of being a transformational pay-zone for the company and its partners following recent successful appraisal wells."Shares were unchanged at 19.75p at 10:06 in London.