Empire Petroleum Enters Joint Development Agreement with Petroleum Independent & Exploration
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Empire Petroleum Corporation has completed an equity transaction and a field level debt issuance, fully funding a substantial workover/recompletion program at its recently-acquired properties in East Texas, specifically, the Fort Trinidad Field in Houston and Madison Counties.
As a result of the investment, Empire Texas LLC has entered into a joint development agreement with The Woodlands, Texas-based Petroleum Independent & Exploration, and PIE Operating and their affiliates, and Mineral Resource Texas (MRP) to execute of series of workovers designed to potentially increase the field’s production from existing wellbores.
The securities purchase agreement outlines a PIE total investment of approximately $3,375,000 for an equity stake of up to 40 percent of Empire. In addition, PIE will provide up to a $2,000,000 loan (may be amended to $3,000,000) to Empire Texas for workover development within our current East Texas assets.
The properties contain approximately 91 percent working interest and 83 percent net revenue interest and have been recently producing from multiple pays of the Glen Rose, Edwards and Buda formations. PIE, led by Phil Mulacek, will contract operate the field and identified workover wells in the program, bringing their experienced carbonate geology, and geophysical, and drilling team that has been responsible for world class discoveries, such as the Elk and Antelope Fields in Papua New Guinea, subsequently bought by Exxon Mobil and Total in 2017.
“As a significant investor in Empire, combined with the operational expertise and capital to implement an initial robust workover program, we believe PIE is a terrific partner aligning with all shareholders. It has been a pleasure working with Phil Mulacek and his team bringing our joint development agreement quickly to fruition,” said Empire’s President Mike Morrisett.
“We’re pleased to have the opportunity to work with Phil and his highly experienced technical team at PIE. The enthusiasm shown while working on planning brought forward other potential acquisitions in close proximity to our strong position in the Fort Trinidad Field that we are currently evaluating,” said Empire’s CEO Tommy Pritchard.
About Empire Petroleum Corporation
Empire Petroleum Corporation is a publicly-traded, Tulsa-based oil and gas company with current producing assets in Texas, Louisiana, North Dakota and Montana. Management is focused on targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. Empire looks for assets where its operational team can deploy rigorous field/well management techniques to reduce unit operating costs and improve margins while optimizing production.
To stop by Empire’s website, CLICK HERE
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