Empire Energy spuds oil well to target production in Kansas

Empire Energy Group EEG spud oil well Kansas

A stabilising oil price has seen Empire Energy Group (ASX: EEG), at the end of last week, spud its first oil well since 2014.

The well, targeting the oil producing Arbuckle formation, is the Thompson #9 in Rooks County, Kansas.

Total depth of the well, which has been drilled on a seismic high, is estimated to be at ~3,500 feet. Drilling is expected to be completed early this week at which time a decision on completion will be made.

This is the first well to be drilled by the Empire Energy since 2014 when drilling programs were halted due to historically low oil prices.

Stabilised oil prices and significantly lower drilling and completion costs in 2017 provide the basis for Arbuckle wells to be commercially successful at oil prices around $50/Bbl. Should favourable oil prices prevail Empire Energy intends to drill further oil wells in Kansas and Oklahoma over 2017.

Historically, Kansas has been a very prolific oil and gas producing state with cumulative production exceeding 6.1 billion barrels of oil (BBO) and 37.5 trillion cubic feet of gas.

The most prolific oil reservoirs are the Arbuckle (Ordovician) and Lansing-Kansas City (Pennsylvanian) formations particularly from fields located on the Central Kansas Uplift (CKU).

Arbuckle reservoirs have produced over 2 BBO state-wide. Of the 31 counties in which the Arbuckle has been productive, over 70% of the production has come from 10 counties situated on the Central Kansas Uplift in which Empire Energy operates.

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