Empire Petroleum received a favorable ruling from the NMOCD regarding the Residual Oil Zone (ROZ) in the Eunice Monument South Unit in New Mexico.
The ruling allows Empire to proceed with a CO2 enhanced oil recovery (EOR) pilot project over the next three years.
The Commission ordered actions against Goodnight Midstream Permian, LLC, and acknowledged Empire's exclusive rights to produce the ROZ.
Favorable Ruling
NMOCD granted Empire exclusive rights to the ROZ in New Mexico, paving the way for CO2 development and sustained production.
Denial of Applications
Goodnight Midstream Permian, LLC had five new injection well applications denied, with injection operations suspended on four existing wells.
Future Actions
Empire plans to revoke permits of third-party saltwater disposal operators and pursue litigation for trespass and damages.
Leaders' Response
Chairman Phil Mulacek and CEO Mike Morrisett expressed satisfaction with the decision, emphasizing commitment to shareholder value and sustainable growth.
- The victory in securing rights to the ROZ and approval for the EOR pilot project are crucial steps towards enhancing production efficiency and asset value for Empire Petroleum.
- The Commission's actions against Goodnight Midstream Permian, LLC indicate a regulatory win for Empire and reinforce its operational authority in New Mexico.
Empire Petroleum's regulatory win marks a significant milestone in advancing its operations in New Mexico, setting the stage for responsible resource development and sustained growth.