Empire Petroleum announced it will acquire a 25 % working interest in the initial well of a three‑well development program located in the East Perkins Field, Calcasieu Parish, Louisiana. The company will fund the investment by issuing approximately 700,000 shares of common stock, a move that expands its production portfolio while avoiding new debt.
The program, designed to develop oil and gas resources in Louisiana, has already seen the operator drill, core, and log the initial test location. Core samples confirm hydrocarbons and robust reservoir pressure, and completion is expected in April 2026. Empire completed due diligence and elected to participate, marking the first time it has committed capital to a Louisiana project.
Empire’s decision comes amid a period of financial strain, with the company reporting negative margins and low profitability in recent quarters. The share issuance dilutes existing shareholders but aligns with the company’s low‑cost, asset‑focused growth strategy. The rights offering, extended to March 18 2026, had the potential to raise up to $10 million at $2.99 per share, but the new investment represents a separate capital deployment.
Empire’s proved reserves stood at 7.6 MMBoe at year‑end 2025, down from 9.2 MMBoe at year‑end 2024, reflecting a modest decline in reserves. The company’s portfolio includes assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, and the Louisiana project is intended to diversify its geographic exposure and enhance long‑term production.
Management noted that the opportunity complements existing operations and could open future midstream‑adjacent prospects that may provide stable, recurring cash flow. The company’s limited analyst coverage and the lack of a recent earnings report mean that market reaction to the announcement is not yet evident.
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