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TULSA - Empire Petroleum (NYSE American:EP), a $159 million market cap oil producer trading near $4.72, has secured a unanimous ruling from the New Mexico Oil Conservation Commission (NMOCD) confirming the company’s rights to the Residual Oil Zone in the Eunice Monument South Unit in Lea County, New Mexico. According to InvestingPro data, the stock is currently trading 42% below its 52-week high of $8.12.
The Commission’s decision, issued at a public hearing on Thursday, affirms Empire’s exclusive rights to produce from the Residual Oil Zone (ROZ) in the Grayburg and San Andres formations under a 1984 Commission Order. The ruling allows Empire to implement a CO₂ enhanced oil recovery pilot project over the next three years. This development comes as the company faces challenging market conditions, with revenue declining 8.63% over the last twelve months to $39.17 million.
The Commission also denied five new injection well applications from Goodnight Midstream Permian, LLC, denied an application for increased injection, and suspended operations on four existing Goodnight injection wells.
Following this decision, Empire plans to proceed with motions to revoke existing permits granted to other third-party saltwater disposal operators while advancing litigation for trespass and damages.
"This unanimous decision marks a significant regulatory win for Empire and reinforces our position in New Mexico," said Phil Mulacek, Chairman of the Board, according to the company’s press release.
Mike Morrisett, President and CEO, noted that the outcome reflects years of work by employees, legal teams, and consultants.
The full text of the Commission’s decision will be available on the NMOCD website in the coming days.
Empire Petroleum currently has producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. InvestingPro analysis indicates the company operates with moderate debt levels but maintains a weak overall financial health score. Subscribers to InvestingPro can access additional insights and 6 more exclusive ProTips about Empire Petroleum’s financial outlook.
In other recent news, Empire Petroleum Corporation has announced a series of developments regarding its subscription rights offering. The company aims to raise gross proceeds of up to approximately $5 million through this offering. Initially, Empire Petroleum set July 10, 2025, as the record date for shareholders to receive one subscription right per share of common stock. Each right allows holders to purchase one unit at $5.30, which includes 0.0139 shares of common stock and a warrant exercisable for 0.0136 shares at $5.46 per share.
The company has extended the expiration date of this rights offering, originally set to expire earlier, to July 30, 2025, at 5:00 p.m. Eastern Time. This extension aims to give stockholders more time to consider participation and arrange financing. Additionally, Empire Petroleum further extended the expiration date to August 18, 2025, to provide even more time for stockholder consideration. These recent developments reflect the company’s efforts to successfully complete the rights offering while accommodating its shareholders’ needs.
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