Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Empire Energy Group Gas Production To Rise In New York State, Pennsylvania 0 comments
    Oct 30, 2013 2:30 AM

    Empire Energy Group (ASX: EEG) is set to increase gas production from its Appalachia assets in the New York and Pennsylvania states as it nears completion of work on pipelines it had acquired in June.

    Talks are underway with C12 Energy about a possible carbon dioxide flood to increase production from the Hall-Gurney Field in Kansas.

    It is also continuing its drilling program in the state.

    The company produced 62,361 barrels of oil and 630.1 million cubic feet of gas in the third quarter ending 30 September 2013.

    This generated estimated revenue of US$6.2 million (A$6.5 million) and unaudited field EBITDAX of US$4.3 million.

    Empire repaid US$3.3 million in debt and had $3.2 million in cash at hand as of 30 September 2013.

    Appalachia

    The company has completed all construction work and modifications required on the Ripley Mina pipeline system and expects to complete work on the PY3 system in November 2013.

    This is expected to deliver production increases of at least 10.5 million cubic feet per month by eliminating gas loss.

    Empire had acquired over 100 miles of pipeline - consisting of the Ripley Mina and PY3 systems - and metering stations from National Fuel in June.

    It had previously noted the pipelines could allow it to bring at least 34 shut-in wells back on line.

    The company has also acquired a further 54 acres of mineral rights in the Bradford Oil Field in Allegany County, New York, that has 20 potential locations for shallow oil wells.

    The permitting process is underway and drilling is scheduled to start before the end of 2013.

    Mid-Continental (Kansas)

    Empire has held several meetings with C12 Energy about a possible CO2 flood in the Hall-Gurney Field.

    C12 has already secured a CO2 source and several leases and the company is negotiating the terms of a possible joint venture.

    The company had in November roped in the U.S. Army Corp of Engineers, refuge officers, and state biologists to lay a new flow line across a wetlands area of the Quivera National Wildlife Refuge that restored production of about 11 barrels of oil per day.

    In Gove County, the company has leased additional acreage and is planning to shoot 3D seismic.

    It noted that two wells drilled in Gove on test locations identified by seismic data acquired in 2012 were tight and considered uneconomic though data from the wells is being re-evaluated to determine new targets in the area.

    A further two wells were drilled in the Bemis-Shutts field with both showing multi commercial pay zones and so are being completed, initially in the Arbuckle formation.

    Australia

    In Australia, the University of Adelaide Shale Research Group has completed its geochemical analysis of close to 900 individual samples collected from relevant existing cores from the prospective McArthur Basin black shale formations in the Northern Territory.

    These demonstrated total organic content of between 2% and 10.4% in pay zones of up to 150 metres.

    In addition, both the Velkerri and Barney Creek shales appear to be located in the oil and oil/gas generative window.

    The geochemical results will be interpreted in the context of recent observations from nearby wells drilled in 2012 and 2013 immediately to the east and contiguous with EP 184.

    These include Armour Energy's (ASX: AJQ) Glyde-1 that produced 3.3 million cubic feet of gas per day from the black shales, supporting the research findings that a significant petroleum system has been generated by the Barney Creek and other equivalent black shale formations.

    Initial field mapping and outcrop sampling exploration program was also conducted across three West to East traverse covering approximately 114 kilometres within EP 184.

    This program mapped and sampled outcrops of the black shale of the Barney Creek, St Vidgeon and Velkerri formations along the respective traverse.

    The field survey identified and mapped a number of significant thrust and fault sections and tested the existing geological maps available for the region. The results of this exploration will be incorporated into existing maps and geologic models to improve the prediction of high prospective areas for shale oil and gas.

    Analysis

    Empire Energy is poised to benefit from improved gas production at its Appalachia operations once the pipeline work is completed next month.

    This is expected to increase its production just from eliminating gas leakage.

    Production from its Kansas operations is also expected to increase while the work on its Northern Territory shale plays could allow it to identify drilling targets once the remaining permits are awarded.

    Macquarie Bank (ASX: MQG) holds a 17.38% stake in the company.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.