Empire Petroleum received a unanimous ruling from the New Mexico Oil Conservation Commission regarding the Residual Oil Zone in the Eunice Monument South Unit.
The Commission granted Empire exclusive rights for CO2 enhanced oil recovery in the Grayburg and San Andres formations in EMSU.
Empire plans to implement a pilot project over the next three years to develop the ROZ and upper zones for sustained production.
Regulatory Win
Empire's victory secures its position in New Mexico and allows for CO2 development in the ROZ and upper zones.
Denial of Applications
The Commission denied five injection well applications and suspended operations on existing wells from Goodnight Midstream Permian, LLC.
Future Impairment Concerns
Empire presented evidence of possible future impairment from neighboring operators' injection activities in the Grayburg.
Litigation & Asset Protection
Empire plans to revoke permits from third-party operators and pursue litigation for trespass and damages to safeguard its assets.
- The ruling sets the stage for Empire to unlock the production capacity of the ROZ and upper zones in EMSU.
- Empire's regulatory win reinforces its foothold in New Mexico and positions the company for sustained growth and returns.
Empire Petroleum's regulatory victory and plans for CO2 development signal a significant opportunity for sustained production growth and asset protection.