Business
Strategic Review
Strategic Review.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9079L Empyrean Energy PLC 10 July 2014 \n \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \nEmpyrean Energy plc (\"Empyrean\" or the \"Company\")\n \nStrategic Review\n \nCommencement of Formal Sale Process\n \nIntroduction\n \nEmpyrean today announces that it is launching a review of strategic options open to the Company to maximise value for shareholders.\n \nEmpyrean is an AIM quoted (Ticker: EME), profitable, US on-shore oil and gas development and production company focussed primarily on the advancement of its assets in Texas and California. The Company's portfolio represents a mix of assets at various stages of development.\n \nIts flagship project is the Sugarloaf AMI in the prolific Eagle Ford Shale, Texas, (\"Sugarloaf\" or the \"Project\") which is operated by US major Marathon Oil Company, and where it has a 3% working interest in approximately 24,000 gross acres centrally positioned in the liquids rich core of the Eagle Ford Shale. Empyrean has an interest in 128 gross producing wells with full development expected to reach over 500 wells and further upside potential from the Austin Chalk development that may be in the order of a further 300 wells.\n \nOther assets include a 57.2% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California. The Basin is a proven oil and gas province. Additionally, Empyrean has a 7.5% interest in the Sugarloaf Block A operated by ConocoPhillips in the Eagle Ford Shale, and a 10% working interest in the Riverbend Project in Texas currently producing from the Wilcox formation.\n \nReview of options\n \nRecent corporate acquisitions around Sugarloaf have demonstrated that high quality Eagle Ford Shale assets are in demand. This activity, together with recent reserve updates by Empyrean and other partners in the Project, have had positive implications on the underlying value of the Sugarloaf asset.\n \nThe board of Empyrean (the \"Board\"), which has been focussed on maximising the commerciality of the Sugarloaf asset alongside its experienced major partners and on demonstrating its future upside potential, has now resolved to consi...