News blog
Empyrean Energy
- BY: Andrew Hore |
- POSTED: 04/02/2015 |
US-focused oil and gas company Empyrean Energy has ended its strategic review and it believes the oil price has fallen too far to secure a realistic price for the assets.
There were plenty of companies that were interested in acquiring the oil and gas interests but the sales process has been brought to an end.
Empyrean is benefiting from continued drilling by Marathon Oil on the Sugarloaf project in the Eagle Ford Shale, Texas. Sugarloaf is still profitable at the current oil price. Cenkos says that 184 wells were in production in December and a further 100 could be operating by the end of 2015.
Empyrean is generating cash from production and has repaid $2m of debt this year, although it has drawn down a further $6m to finance its share of investment in Sugarloaf.
In the year to March 2015, Cenkos forecasts that Empyrean will make a profit of $6.1m on revenues of $11.9m. Net assets of $40.1m are forecast.
At 5.25p a share, Empyrean is valued at £11.6m.
AIM Journal January 2015 available.
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