Empire Petroleum Secures Unanimous Victory to Advance CO₂ Development and Protect EMSU Assets
Empire Petroleum's Regulatory Win: Empire Petroleum received a favorable ruling from the New Mexico Oil Conservation Commission, affirming its rights to the Residual Oil Zone in Lea County and allowing for a CO₂ enhanced oil recovery pilot project over the next three years.
Impact on Competitors: The Commission denied multiple applications from Goodnight Midstream and suspended operations on existing wells, while Empire plans to revoke permits for third-party saltwater disposal operators, aiming to protect its assets and ensure sustained growth.
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Empire Petroleum Extends Revolver Loan Maturity to 2028
- Credit Facility Extension: Empire Petroleum has entered into a third amendment with Equity Bank, extending the maturity of its existing $20 million revolving credit facility from December 29, 2026, to December 29, 2028, thereby providing additional financial flexibility to support the company's strategic growth initiatives.
- Strategic Partnership: CEO Mike Morrisett emphasized the strong relationship with Equity Bank and their continued confidence in the company's business strategy, indicating that the bank's deep industry knowledge has been a valuable resource throughout their partnership.
- Asset Optimization Opportunities: The extension of the credit facility enables Empire Petroleum to pursue greater flexibility in organic growth and targeted acquisitions, thereby optimizing its asset base and enhancing its competitive position in the market.
- Market Outlook: Empire Petroleum focuses on existing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, with management planning to drive growth through the acquisition of proved developed assets that synergize with its current portfolio of wells.
Empire Petroleum Announces Q3 2025 Results, Progresses Development, and Prepares for Growth in 2026
Operational Highlights: Empire Petroleum reported a 5% increase in net oil production to 1,566 barrels per day in Q3-2025, with total product revenue of $9.4 million despite a net loss of $3.8 million. The company is advancing its enhanced oil recovery efforts in North Dakota and preparing for its first drilling campaign in Texas.
Financial Performance: The company generated approximately $2.5 million from a successful rights offering, with over 100% subscription from shareholders. Adjusted EBITDA for Q3-2025 was $0.1 million, showing significant improvement compared to the previous quarter.
Future Outlook: Empire is strategically pacing its drilling operations to align with market conditions, anticipating a shift towards higher-value gas development in 2026 as natural gas pricing strengthens. The company is also focusing on operational flexibility by progressing drilled-but-uncompleted wells.
Regulatory Developments: The New Mexico Conservation Commission affirmed Empire's rights to produce from the Residual Oil Zone in the Eunice Monument South Unit, denying competing applications and potentially reducing operating expenses while improving financial performance.