While recording another slight net loss in the third quarter, Tulsa’s Empire Petroleum is pushing ahead with a strong effort in its enhanced drilling projects in North Dakota.
The company reported third quarter revenue of $10.9 million, a net loss of $3.6 million, or $0.12 per diluted share and an adjusted net loss of $3.8 million, or $0.12 per diluted share. In the second quarter, Empire had product revenue of $12.8 million, a net loss of $4.4 million and 15 cents a share.
The company’s production was 2,460 barrels of oil equivalent a day, including 1,573 barrels of oil a day, down from the second quarter when production was 2,638 barrels of oil equivalent per day. Empire explained, the production decline in Q3-2024 resulted from two field optimization efforts, including: 1) the conversion of three producing wells into injectors to support long-term production growth, and 2) the temporary shut in of three producing wells near drilling activity, while drilling the horizontal wells
“In recent months, Empire has been focused on its capital expenditures program, while simultaneously advancing its projects and infrastructure development in North Dakota,” said Phil Mulacek, Chairman of the Board of Empire. “We are incredibly proud of the progress made in Starbuck and the completion of the horizontal drilling, filing of a key patent, and securing the injection permits are significant milestones that highlight our team’s dedication to driving innovation and achieving operational excellence.”
Mike Morrisett, President and CEO, added, “We expect the EOR injections in Starbuck to achieve our goals, reflecting Empire’s dedication to efficiency and continuous growth. Additionally, the potential developments in Texas offer significant opportunities, and we are focused on expanding our operations by leveraging our historical knowledge and expertise in all areas.”
Empire is awaiting world from the U.S.Patent and Trademark Office after it filed, during the quarter, a provisional patent application in connection with a technology it developed in relation to hydrocarbon vaporization with the official application submitted in Q4-2024. The patent application is directed to a novel method for superheating water or other fluids prior to injection into a well, which will significantly improve the effectiveness of the EOR injection operations.
The company said it plans to use net proceeds from a $10 million rights offering at $5.05 per share for previous, current and future drilling activity in North Dakota and New Mexico, workovers and recompletions in Texas, land and lease purchases, and the completion of the initial stage of EOR facilities in the Starbuck field.
North Dakota – Williston Basin:
- Empire completed its initial 13-well drilling program in the Starbuck field in Q3-2024, with the three injection wells expected to be instrumental in increasing production;
- Empire is conducting a thorough analysis of The Company’s other fields in North Dakota to determine which sites may be well-suited for EOR processes and technologies;
- During Q4-2024, the Company is working on standard commissioning operations on the EOR equipment before the EOR can reach steady state, which is expected in Q1-2025;
- The second stage of the EOR program and infrastructure remains on track to be completed in 2025-2026; and
- New horizontal laterals will be completed for Starbuck and the other fields Empire operates in North Dakota.
New Mexico – Permian Basin:
- Empire continues the legal and regulatory actions against third-parties trespassing on the New Mexico water floods;
