News

November 05, 2008

Empyrean Energy Enjoys The Sweet Taste Of Success At Sugarloaf, And Looks Forward To Bigger And Better Things Elsewhere

By Henry Sandford

Aim-traded, US-focused Empyrean Energy benefits from being a producer rather than purely a high impact explorer. Being the latter has seen many of Empyrean’s Aim peers come to grief this year as wary investors have ditched energy companies without a revenue stream to fall back on, despite the oil price rocketing above US$100 a barrel.

Empyrean initially attained producer status through the Margarita project in Texas, in which the company has a 44 per cent interest. Margarita consists of three shallow wells producing a mix of oil and gas. An obvious plus point is that the US is an enormous energy market  - as is Texas alone for that matter - and has highly developed distribution infrastructure. However, that doesn’t change the fact that the production provided by Margarita is pretty small, and Empyrean’s commercial...