Empire Petroleum, a publicly traded oil and gas company, received a favorable ruling from the New Mexico Oil Conservation Commission regarding the Residual Oil Zone (ROZ) in Eunice Monument South Unit (EMSU).
The Commission granted Empire exclusive rights to produce the ROZ under the 1984 Commission Order, allowing for a CO2 enhanced oil recovery pilot project in the next three years.
The ruling also involved actions against injection well applications and operations by Goodnight Midstream Permian, LLC.
Regulatory Win
Empire Petroleum's unanimous decision reinforces their position in New Mexico and enables CO2 development for sustained production.
Legal Actions
Empire plans to proceed with revoking existing permits for third-party saltwater disposal operators and advancing litigation for trespass and damages.
Management's Response
Chairman of the Board, Phil Mulacek, and CEO Mike Morrisett expressed gratitude for the regulatory win and acknowledged the dedicated efforts of their team.
- The ruling secures Empire's assets in New Mexico, allowing for strategic development and protection against activities that could impact value.
- Empire's planned actions to address injection operations and disposal activities demonstrate a commitment to long-term asset value and growth.
The unanimous decision marks a significant milestone for Empire Petroleum, providing a clear path forward for responsible development and sustained growth in New Mexico's oil and gas sector.