Empyrean Energy Plc, based in London, is an energy investment company providing funds through direct participation or farm-in agreement to oil and gas exploration, development, and production projects. The company’s management team has years of experience in both the investment and energy industry. A typical financing process begins with identifying and analyzing opportunities of prospective projects. Having determined on the appropriateness of risk versus reward within a project, the company proceeds to negotiating with potential partners for a percentage funding of the project. The company seeks projects primarily in geopolitically stable environments and thus far has solely focused projects in the U.S.
A non-operator in its project involvements, Empyrean Energy Plc pays its share of drilling cost based on the percentage of working interest it has acquired. Partnering with various U.S. companies, Empyrean Energy is currently participating in four U.S. projects, three in Texas, and one in southern California.
The California project, Eagle Oil Pool Development, in which the company holds 48.5% interest, the most among all projects, has a recoverable reserves of 7.1 million barrels of oil and 12.3 billion cubic feet of gas. In the Texas Sugarloaf Hosston Project, which comprises of Block A and Block B, the company has interests ranging from 3% to 9% in a total of 9 different wells. Recoverable reserves from each of those wells are estimated at 2-10 billion cubic feet of gas equivalent. The company retains an equal 10% interest in the other two Texas projects with an estimated potential of 80 billion cubic feet of gas equivalent for the Riverbend Project and 21.4 billion cubic feet of gas equivalent for the Hercules Project.
Empyrean Energy Plc had two placings in 2009 raising £1.54 million. The funds were used to finance the company’s investment of 10% share in the Riverbend project, as well as provide working capital. In 2010, the company is more than doubling its fund raising effort, bringing in £3.6 million and making available fund uses for any further participation in its existing Texas and California projects. The company has in the past expressed its belief in the sustainability of its project portfolio. In fact, nearly 70% of its investments have either produced or currently in production.
Shares of Empyrean Energy Plc (EME) are listed on LSE’s AIM sub-market and were at 5.75p as of 5 July 2010.