Empyrean Energy Plc · LSE:EME
Empyrean Energy — Shareholder Meeting (September 2014)
17 slides from Empyrean Energy's shareholder meeting presentation, September 2014
Slide 1: Empyrean Energy Annual General Meeting 2014
Empyrean Energy LLC ANNUAL GENERAL MEETING 2014
Slide 2: Project Locations
Project Locations San Joaquin, California – Eagle Oil Project Onshore Texas – Riverbend Project, 800 Bcfe potential Onshore Texas Gulf Of Mexico – Sugarloaf Project, Blocks A and B 2 © Empyrean Energy Plc
Slide 3: Geologic Overview: Eagle Ford Shale
Geologic Overview Eagle Ford Shale Upper Cretaceous, highly organic black shale punctuated with intervals of fractured limestones, calcareous shale and bentonite Deposited during the global scale, Cenomanian-Turonian anoxic event – a time of world-wide high organic production Disconformably ov
Slide 4: Land
Land Overview Empyrean’s Sugarloaf AMI leasehold consists of a 3.0% working interest in approximately 25,397 gross (24,081 net, 722 company net) acres 100% held by production Average 75% net revenue interest Marathon is in the process of refining AMI unit boundaries to further optimize horiz
Slide 5: Geologic Overview: Greater Eagle Ford/Austin Hydrocarbon System
Geologic Overview Greater Eagle Ford/Austin Hydrocarbon System • Produces primarily from the Eagle Ford Shale and Austin Chalk and is one of the most prolific petroleum provinces in the US • Productive fairway extends from the Rio Grande River to beyond the Mississippi River • The Austin Chalk fairw
Slide 6: Operations: Sugarloaf AMI Operations Overview
Operations Sugarloaf AMI Operations Overview • Marathon has announced successful down-spacing results in both the Eagle Ford Shale and Austin Chalk and intends to co-develop the Austin Chalk with the Eagle Ford Shale • Marathon plans to drill 100 to 110 new wells in 2014 • In the Eagle Ford Shale, i
Slide 7: Operations: Sugarloaf AMI Operations Overview
Operations Sugarloaf AMI Operations Overview • Marathon’s current operations are focused on capital and operating efficiencies leading to optimized resource recovery • Top quartile drilling performance • Increasing recovery factors through improved completion efficiencies • Driving down unit costs a
Slide 8: Texas Eagle Ford Shale Condensate Production
Texas Eagle Ford Shale Condensate Production 2006 through 2011 • Upper Eagle Ford prospective across Karnes and Atacosa acreage • Pilot testing extends Austin Chalk/Lower Eagle Ford success • Testing vertical density in large hydrocarbon column to drive further recovery • Designed to optimize co- de
Slide 9: Austin Chalk Co-Development Area Map
Slide 10: Sugarloaf AMI Reserves
Sugarloaf AMI Revised Reported as at Increase (EME 3%, net 2.25% 31 Dec 2013 1 Sept 2012 % after royalties) MMboe MMboe 1P Reserves 3.54 2.32 53 2P Reserves 6.52 4.40 48 3P Reserves 8.92 New New 2C Contingent 3.87 New New Resources 2P + 2C 10.39 New New
Slide 11: Barrels of Oil Equivalent
Barrels of Natural Oil & Oil Gas Sales Gas NPV(10)US$ Condensate Equivalent Liquids MMcf million MBBLS MMboe MBBLS 1P 1,542 835 6,999 3.544 52.9 Reserves 2P 2,649 1,636 13,420 6.521 97.0 Reserves 3P 3,486 2,302 18,768 8.915 139.5 Reserves 2C 1,094 1,189 9,509 3.868 -
Slide 12: Operations: Sugarloaf AMI Operations Overview
Operations Sugarloaf AMI Operations Overview • Marathon continues to test stimulation designs to improve well performance • “Zipper” stimulations from pads materially impacting fracture complexity and improving recovery • Fluids, volumes, rates, cluster spacing and proppant volumes are evolving with
Slide 13: Current Production and Capacity by Central Facility
Current Oil Current Gas Gas Capacity Oil Capacity Central Facility Production Production (MSCFD) (MSCFD) (BOPD) (BOPD) E Sugarloaf ~19,000 ~5,500 27,000 10,000 W Sugarloaf ~28,000 ~9,500 30,000 10,000 S Sugarloaf ~42,000 ~7,500 60,000 10,000 Sugarhorn ~17,000 ~8,500 25,000 15,000 Total ~106,000 ~31,
Slide 14: Operations: Facilities Overview
There are currently four central processing facilities on the Sugarloaf AMI The typical central processing facility is expandable, and includes oil separation, treatment and storage facilities, water storage, and gas processing and compression facilities Two additional central processing facil
Slide 15: Operations: Product Marketing Overview
Commodities are marketed by Marathon on behalf of Empyrean Marathon oil price is based on Louisiana Light Sweet (“LSS”), and trades at a premium to WTI Marathon’s gas price is based on Henry Hub All gas is processed and NGL pricing is based on Mont Belvieu Operations Product Marketing Overvi
Slide 16: Summary
Summary A non-operated working interest position in one of the most prolific producing areas of the world-class Eagle Ford Shale Marathon Oil, the operator, is dedicated to aggressively developing the acreage (100+ gross wells planned for 2014), improving well performance and reducing well and o
Slide 17: Eagle Oil Project (California, USA)
Eagle Oil Project (California, USA) 58.084% Working Interest Valuable future project for the Company with large equity position Eagle north-1 well: 13.4 metres net pay from a gross 21 metres in the vertical well in the target sands Mechanical failure prevented a commercial test of the horizontal
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