Empyrean Energy is pleased to provide a production update from its flagship Sugarloaf AMI Project ('Sugarloaf' or the 'Project') in the prolific Eagle Ford Shale, Texas, for the three month period to the end of March 2015 ('Q1 2015' or the 'Quarter').
Empyrean has a 3% working interest in the Project, which is operated by Marathon Oil Company, a subsidiary of US major Marathon Oil Corporation (NYSE: MRO) ('Marathon' or the 'Operator').
•Consistent production rates from Sugarloaf AMI for Q1 2015 of 109,425 boe net to Empyrean's interest after royalties and costs ('royalties') (Q4 2014: 111,921)
•Average daily production from Sugarloaf for Q1 2015 of 1,216 boe net to Empyrean's interest after royalties (Q4 2014: 1,217)
•Continued drilling and investment in Sugarloaf by Marathon, positively impacting drilling efficiency
◦205 gross producing wells at Sugarloaf at 31 March 2015, an increase of 18 since Q4 2014
◦218 gross producing wells at Sugarloaf at 20 May 2015, including 28 in the overlying Austin Chalk formation
◦Inventory of 40 wells drilled and in various stages of completion at the end of the Quarter
◦First 'Stack and Frac' pilot now in production with encouraging early results
•Sugarloaf continues to demonstrate significant potential upside due to co-development opportunities
◦Austin Chalk continues to be developed positively with short term potential to increase reserves from further delineation
◦The Upper Eagle Ford is emerging as third co-development appraisal opportunity with potential upside available from delineation of a contingent resource