Oil producing assets, Gove County, Kansas
Empire Energy announce that its 95% owned subsidiary, Empire Energy E&P, LLC (“Empire Energy”) has entered into a binding agreement to acquire a 97.9% working interest in producing petroleum properties located in Gove County in the Central Kansas Uplift, Kansas for a purchase price of US$1.7 million, subject to closing adjustments.
The Acquired Assets consist of 3,360 gross (2,648 net) acres on land with total preliminary estimated proved and probable recoverable reserves of 470,000 barrels of oil. As at July 1, 2012 the working interest production from the Acquired Assets was approximately 20 Bbl/d, which Empire Energy expects to quickly increase through targeting 2 behind pipe Mississippian and Pennsylvanian carbonate opportunities identified by 3D seismic, plus an initial 11 seismic identified drilling locations to be targeted over 2012/13.
The Acquired Assets have the following attributes:
● 100% working interest in 3,200 acres and a 55% working interest in 160 acres (2,648 net acres).
● Working interest in 4 gross (2.7 net) producing wells, 2 behind pipe Mississippian carbonate wells (1.1 net); 1 gross (0.8 net) non-producing shut-in well and 1 gross (0.8 net) salt water disposal well.
● Acreage acquired with an allocated value of $187/ac.
● Producing assets (PDP) acquired at $26.40/Bbl net reserves.
● Net production was acquired at $64,062/Bbl/d (per net flowing Bbl).
● Net proved reserves were acquired at US$10.41/Bbl, or US$2.03/Bbl per net proved plus probable reserves, with 100% oil.
● For 2012, the estimated field netback for the Acquired Assets is ~$69.00/Bbl.
● All Acquired Assets will be operated by Empire Energy.
● Preliminary estimated net 2P reserves of 470,000 Bbl.
● 3D seismic surveys covering a total of 12.3 square miles.
● An initial drilling inventory of 11 identified locations.
● Effective date, June 1, 2012.
Macquarie Group have also recently increased their holdings from 40,333,334 FPO shares (13.83%) to 47,000,000 FPO shares (15.76%)
Macarthur Basin and Kansas drilling programs also in effect.
