Empyrean Energy unveils positive production update

Empyrean Energy on Friday reported strong production results and revenues from onshore operations in Texas for the last three months of 2012.

The oil and gas explorer said estimated unaudited accounting revenues for the quarter came to $1.37m while cash receipts attributed to production totalled 42.59m from the Sugarloaf project in Texas.

There were 62 wells in production at the end of the quarter at Sugerloaf with a further four in the pipeline.

"Empyrean continues to be encouraged by the strong production numbers coming through on new wells," said Chief Executive Officer Tom Kelly.

"We look forward to the results of closer spacing and the testing of production from additional horizons. Success on any of these initiatives is potentially transformational for the value of Empyrean's Sugarloaf asset."

The company will be testing the viability of Austin Chalk and other horizons to add reserves and increase production. Results from the prospects are expected to be announced in the first half of this year.

Shares climbed 1.82% to 7.00p at 11:56 Friday.

RD