Empire Petroleum secures ruling to develop CO₂ EOR pilot in New Mexico

Empire Petroleum has secured a unanimous ruling from the New Mexico Oil Conservation Commission (NMOCD), confirming the company’s exclusive rights to the Residual Oil Zone (ROZ) within the Eunice Monument South Unit (EMSU) in Lea County, New Mexico, US.

The decision, delivered on 14 August, follows four years of dedicated effort and expenditure by Empire.

The NMOCD’s ruling allows Empire to proceed with a CO₂ enhanced oil recovery (EOR) pilot project over the next three years.

This development represents a major step forward in the company’s operations within the Grayburg and San Andres formations.

Empire Petroleum board chairman Phil Mulacek said: “We are extremely pleased with this unanimous decision, which marks a significant regulatory win for Empire and reinforces our position in New Mexico.

“It paves the way for us to move forward with CO₂ development to unlock the capacity for sustained production in the ROZ and upper zones, while also safeguarding our assets from activities that threaten their value.”

In a comprehensive verdict, the Commission has also taken decisive action against Goodnight Midstream Permian, denying five new injection well applications and an application for increased injection.

Additionally, four existing Goodnight injection wells have been ordered to suspend operations and all pending motions related to these cases have been denied.

While the Commission did not find immediate impairment of correlative rights due to injection activities by neighbouring operators, Empire presented evidence suggesting potential future impairment or waste.

In response to this, Empire is planning to file motions to revoke permits granted to other third-party saltwater disposal operators in the EMSU and pursue litigation for trespass and damages.

Empire president and CEO Mike Morrisett said: “This outcome reflects years of dedicated work by our employees, legal team and consultants, and I want to thank them for their tireless efforts in protecting and advancing our New Mexico position.

“We also want to thank the NMOCD for its thorough review of the facts and its unanimous decision. We take seriously our fiduciary responsibility to our shareholders and remain committed to realising the long-term value we see in the EMSU assets. This decision gives us a clear path forward to responsibly develop these resources and position Empire for sustained growth and returns.”

“Empire Petroleum secures ruling to develop CO₂ EOR pilot in New Mexico” was originally created and published by Offshore Technology, a GlobalData owned brand.