StockMarketWire.com - Oilex Ltd [LON:OEX] was up in late trading after it said overall progress of the Cambay-73 project is 77% complete. It anticipated production during May 2015.

The electrical system installation is almost complete while mechanical fabrication is 82% complete. Various pre-commissioning activities should commence next week and costs are forecast to be within budget despite some delays in equipment delivery.

Connection of the low pressure gas pipeline system to the plant is the responsibility of the gas buyer and is expected to be completed during April 2015.

Cambay-73 is a frac'd vertical well located 1.2km SSE of Cambay-77H, the first multistage frac'd horizontal well to be successfully production tested in the Cambay Basin.

Cambay-73 and Cambay-77H have intersected the same Y zone reservoir and both have produced gas and light oil/condensate. Gas composition analyses conclude that gas from Cambay-77H and Cambay-73 is almost identical with minimal processing required to reach pipeline specification.

Cambay-73 will supply gas to a low pressure gas market in the vicinity of the Cambay Field and is expected to produce approximately 50-60boepd of gas and condensate. The condensate will be separated at the field and trucked to a nearby refinery together with other Cambay crude oil.

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Empyrean Energy [LON:EME] reports a significant increase in output from the Sugarloaf AMI project in Texas for the fourth quarter to the end of December.

Total production was 166,572 barrels of oil equivalent net to Empyrean interest before royalties and 111,921 boe after royalties - representing an increase of 39% and 38% respectively on third quarter output.

In addition, net average daily production was 1,811 boe net to Empyrean's interest before royalties and 1,217 boe/d after royalties and net average daily production for the month of December reached 1,984 boe/d before royalties and 1,336 boe/d after royalties.

Going forward, Empyrean intends to report all production numbers as net to Empyrean's interest after royalties, unless otherwise stated, in order to bring the Company's policy into line with its licence partners and the methodology used for reporting the Company's annual and interim financial results.

Chief executive Tom Kelly said, "Despite extremely challenging oil prices recently, our production from Sugarloaf is continuing to grow steadily as further development wells are brought on line. We are fortunate that our project is located in the liquids rich sweet spot of the Eagle Ford Shale play and therefore enjoys relatively low marginal costs of production compared with other shale plays across the USA.

"Marathon continues to optimise well performance and drilling and completion costs continue to decrease. We are confident that further data gathered from existing Austin Chalk wells, in conjunction with additional Austin Chalk wells coming on line at lower spacing density, has the potential to deliver a significant increase in contingent resources along with an increase in proven reserves for existing producing locations in the short to medium term.

"In response to the continued and significant level of drilling activity at Sugarloaf, we are taking steps to adjust the basis on which we report production figures in order to ensure that we are in a position to update shareholders on a timely and accurate basis, and in a manner consistent with our revenue reporting."

Empyrean has a 3% working interest in the project, which is operated by Marathon Oil Co.

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The sector's top riser was Tower Resources [LON:TRP] - up by more tha 147% in late trading - while the biggest faller was Sefton Resources [LON:SER] - down by over 8%.





At 4:08pm:

[LON:AUR] Aurum Mining PLC share price was 0p at 0.95p

[LON:BOR] Borders Southern Petroleum PLC share price was -0.12p at 5.83p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.13p at 8.48p

[LON:DGO] Dragon Oil PLC share price was +10.5p at 590.5p

[LON:EME] Empyrean Energy PLC share price was -0.13p at 6p

[LON:ENQ] EnQuest Plc share price was +1.5p at 39.5p

[LON:FOGL] Falkland Oil Gas Ltd share price was -0.38p at 27.75p

[LON:GKP] Gulf Keystone Petroleum share price was +0.25p at 37.25p

[LON:GPX] Gulfsands Petroleum PLC share price was 0p at 23.5p

[LON:INDI] Indus Gas Ltd share price was +42.38p at 137.88p

[LON:OEX] Oilex Ltd share price was +0.63p at 3p

[LON:PET] Petrel Resources PLC share price was +0.13p at 3.25p

[LON:RKH] Rockhopper Exploration PLC share price was +1p at 63p

[LON:RPT] Regal Petroleum PLC share price was +0.25p at 4.5p

[LON:SER] Sefton Resources Inc share price was -0.01p at 0.11p

[LON:TRP] Tower Resources PLC share price was +0.16p at 0.26p

[LON:XEL] Xcite Energy Ltd share price was -0.12p at 28.88p



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