EP News & Events

Empire Petroleum announced it has elected to participate in a new oil and natural gas development program in Louisiana that represents an addition to the company's ongoing development activities. Empire has completed its due diligence and elected to participate in a three-well development program targeting proven formations in Louisiana. While the program targets hydrocarbon-bearing formations, the actual oil-to-gas mix will be established through ongoing development. As part of its participation, Empire will hold a 25% working interest in the initial well, with the company's portion of drilling and completion costs funded through the issuance of approximately 700,000 shares of Empire common stock. The operator recently drilled, cored, and logged the initial test location in Louisiana and transmitted to Empire detailed subsurface data supporting a completion decision. Based on the operator's subsurface evaluation and analysis, the interval includes several productive sand zones, and core samples confirmed liquid and gas hydrocarbons. The well had a solid hydrocarbon flare while holding over 9,100 psi of back pressure with 16.5+ lb/gal drilling mud, demonstrating strong reservoir pressure. The test location lies within the East Perkins Field in Calcasieu Parish, Louisiana, in a portion of the reservoir that sits higher in the formation than nearby legacy production. Completion operations on the initial well are expected to begin in April with initial production testing to follow. The well represents the first development opportunity within a broader prospect area that includes two more locations, which together offer additional potential development targets within the same structural trend.

Reports Q3 revenue $9.39B vs. $11.38B last year. Produced Q3 net production volumes of 1,566 Bbls/d, up 5% vs. Q2; reported 2,398 barrels of oil equivalent per day; Boe/d is comprised of 65% oil, 19% natural gas liquids, and 16% natural gas. "Empire continues to execute with precision and discipline as we move through the remainder of 2025," said Phil Mulacek, Chairman of the Board. "...The natural gas market has shifted significantly over the past several years, with U.S. liquefied natural gas exports now exceeding approximately 18 billion cubic feet per day compared to near zero just over a decade ago, and pricing strengthening from lows near $1.35 per thousand cubic feet toward long-term historical averages in the $4.00-$5.00/Mcf range. As additional demand from data centers, industrial users, and exports into Mexico continues to accelerate, long-term fundamentals point toward ongoing tightening into 2026. To capitalize on this shift, Empire is building operational flexibility by progressing a series of drilled-but-uncompleted wells, positioning the company to efficiently transition into higher-value gas development in 2026...As pricing signals continue to strengthen, we expect natural gas to play an increasingly meaningful and leading role in Empire's development strategy and earnings growth trajectory beginning in 2026...With these accomplishments and a constructive outlook for the broader energy market, I believe we're well positioned to capture meaningful upside as pricing conditions stabilize. The groundwork we're laying today is designed to position Empire for long-term success, and as we move forward, we look forward to building additional production in New Mexico, a key driver of future growth within Empire's portfolio."

Empire Petroleum announced the New Mexico Oil Conservation Commission has issued a unanimous and favorable ruling regarding the company's rights to the residual oil zone in the Eunice Monument South Unit Unitized Interval in Lea County, New Mexico. After four years of expenditures, Empire received the Commission's unanimous decision at a public hearing on August 14, affirming the existence of a ROZ in the Grayburg and San Andres formations within the EMSU and confirming Empire's exclusive rights to produce the ROZ under the 1984 Commission Order. The commission is allowing Empire the opportunity to implement a CO2 enhanced oil recovery pilot project over the next three years. In addition to the findings noted above, the commission unanimously ordered the following actions: deny five new injection well applications from Goodnight Midstream Permian; deny application for increased injection from Goodnight; suspend injection operations on four existing Goodnight injection wells and deny all pending motions attached to these cases. The commission further found that, while Empire did not prove immediate correlative rights impairment in the Grayburg from neighboring operators' injection activities, the company presented compelling evidence of possible future impairment or waste. Following this outcome, Empire intends to proceed with Motions to Revoke existing permits granted to the remaining third-party saltwater disposal operators disposing wastewater into the EMSU and Unitized Interval of the Arrowhead Grayburg Unit, while concurrently advancing litigation for trespass and damages.

Empire Petroleum announced that it has extended the expiration date of its previously announced subscription rights offering pursuant to which it intends to raise gross proceeds of up to approximately $10M. The company has extended the Expiration Date in order to allow its stockholders to have more time to consider their participation and arrange finances for the Rights Offering. A contributing factor is requests by company stockholders as a result of the recent disruption caused by Hurricane Milton. The Rights Offering is now expected to expire at 5:00 p.m., Eastern Time, on October 24, 2024, subject to extension or earlier termination.