Empire Petroleum mentioned the New Mexico Oil Conservation Fee has issued a good ruling concerning the corporate’s rights to the residual oil zone (ROZ) within the Eunice Monument South Unit (EMSU) Unitized Interval in Lea County, New Mexico.
After 4 years of expenditures, Empire was granted the fee’s unanimous determination at a public listening to, affirming the existence of a ROZ within the Grayburg and San Andres formations inside the EMSU and confirming Empire’s unique rights to supply the ROZ beneath the 1984 Fee Order.
The ruling permits Empire to implement a carbon dioxide (CO2) enhanced oil restoration (EOR) pilot challenge over the subsequent three years, the Tulsa, Oklahoma-based firm mentioned in a information launch.
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Empire had utilized to revoke 4 present permits and deny 5 new functions for what it believes is the unlawful disposal of wastewater into EMSU Unitized Interval by the most important of the third-party saltwater disposal operators.
The fee has additionally taken motion towards Goodnight Midstream Permian, denying 5 new injection effectively functions from the agency and suspending injection operations at 4 present Goodnight injection wells, in response to Empire.
The fee discovered that Empire “offered compelling proof of attainable future impairment or waste,” in response to the discharge.
Empire mentioned it intends to proceed with motions to revoke the prevailing permits granted to the remaining third-party saltwater disposal operators which are disposing of wastewater into the EMSU and Unitized Interval of the Arrowhead Grayburg Unit, whereas advancing litigation for trespass and damages.
“We’re extraordinarily happy with this unanimous determination, which marks a major regulatory win for Empire and reinforces our place in New Mexico,” Empire Chairman Phil Mulacek mentioned. “It paves the best way for us to maneuver ahead with CO2 improvement to unlock the capability for sustained manufacturing within the ROZ and higher zones, whereas additionally safeguarding our property from actions that threaten their worth”.
Empire President and CEO Mike Morrisett mentioned, “This consequence displays years of devoted work by our staff, authorized workforce, and consultants, and I wish to thank them for his or her tireless efforts in defending and advancing our New Mexico place. We additionally wish to thank the NMOCD for its thorough evaluation of the info and its unanimous determination. We take severely our fiduciary accountability to our shareholders and stay dedicated to realizing the long-term worth we see within the EMSU property. This determination provides us a transparent path ahead to responsibly develop these sources and place Empire for sustained development and returns”.
Whereas litigation has restricted the scope of improvement exercise within the affected areas, manufacturing from the EMSU and Arrowhead Grayburg items have elevated in latest months, reflecting ongoing optimization efforts, the corporate mentioned in an earlier assertion.
Empire mentioned it expects to succeed in steady-state manufacturing ranges by the tip of the fourth quarter in its present EOR program within the Starbuck area of North Dakota’s Williston Basin, contingent on continued tools reliability and seasonal working stability. This system is anticipated to “help sustained manufacturing development and improved asset efficiency over the long run,” the corporate mentioned.
Empire Petroleum describes itself as a publicly traded oil and fuel firm with present producing property in New Mexico, North Dakota, Montana, Texas, and Louisiana.
To contact the creator, e mail rocky.teodoro@rigzone.com
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