Empire Hails Court Victory, Aims to Advance CO2 Development
Empire Petroleum (NYSE: EP) shares triumphed Friday, as the oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, announced the New Mexico Oil Conservation Commission has issued a unanimous and favorable ruling regarding the Company’s rights to the Residual Oil Zone in the Eunice Monument South Unit Unitized Interval in Lea County, New Mexico.
After four years of expenditures, Empire received the Commission’s unanimous decision at a public hearing on August 14, affirming the existence of a ROZ in the Grayburg and San Andres formations within the EMSU and confirming Empire’s exclusive rights to produce the ROZ under the 1984 Commission Order. The Commission is allowing Empire the opportunity to implement a CO2 enhanced oil recovery pilot project over the next three years.
In addition to the findings noted above, the Commission unanimously ordered the following actions:
• Deny five new injection well applications from Goodnight Midstream Permian, LLC (“Goodnight”);
• Deny application for increased injection from Goodnight;
• Suspend injection operations on four existing Goodnight injection wells; and
• Deny all pending motions attached to these cases.
“The Commission,” according to this morning’s news release, “further found that, while Empire did not prove immediate correlative rights impairment in the Grayburg from neighboring operators’ injection activities, the Company presented compelling evidence of possible future impairment or waste.”
EP shares powered forward 29 cents, or 6.1%, to $5.01.
