Empire Petroleum received a favorable ruling from the New Mexico Oil Conservation Commission related to their rights in the Eunice Monument South Unit (EMSU).
The Commission affirmed Empire's exclusive rights to produce the Residual Oil Zone (ROZ) under the 1984 Commission Order.
Empire has the opportunity to implement a CO2 enhanced oil recovery pilot project over the next three years.
Regulatory Win
Empire Petroleum obtained a significant regulatory win in New Mexico, securing rights to develop the ROZ and upper zones.
Operational Actions
The Commission ordered the denial of new injection well applications, increased injection requests, and suspension of existing injection operations by a third-party operator.
Future Growth
Empire's strategic move towards CO2 development aims to ensure sustained production and safeguard asset values.
- The unanimous decision by the Commission reinforces Empire's position in New Mexico and unlocks the potential for sustained production in key zones.
- Empire's actions to revoke permits of third-party operators and pursue litigation indicate a strong commitment to protecting its assets and advancing growth.
The decision by the Commission presents Empire Petroleum with a clear path forward to responsibly develop resources, ensuring long-term growth and returns for shareholders.