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 LLC and PIE Operating LLC and their affiliates (collectively, “PIE”) and Mineral Resource Texas, LLC (“MRP”) to execute of series of workovers designed to potentially increase the field’s production from existing wellbores.
“We’re pleased to have the opportunity to work with Phil and his highly experienced technical team at PIE”
The Securities Purchase Agreement outlines a PIE total investment of approximately $3,375,000 for an equity stake of up to 40% of Empire. In addition, PIE will provide up to a $2,000,000 loan (may be amended to $3,000,000) to Empire Texas LLC for workover development within our current East Texas assets.
The properties contain approximately 91% working interest and 83% 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,” stated Mike Morrisett, President. “It has been a pleasure working with Phil Mulacek and his team bringing our Joint Development Agreement quickly to fruition.”
“We’re pleased to have the opportunity to work with Phil and his highly experienced technical team at PIE,” stated Tommy Pritchard, CEO. “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.”