Empire Petroleum secures unanimous victory to advance CO2 development and protect EMSU assets
Published by Emilie Grant,
Editorial Assistant
Oilfield Technology,
Empire Petroleum, an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, has announced that the New Mexico Oil Conservation Commission (NMOCD or the Commission) has issued a unanimous and favourable ruling regarding the company’s rights to the Residual Oil Zone (ROZ) in the Eunice Monument South Unit (EMSU) Unitised Interval in Lea County, New Mexico.
After four years of expenditures, Empire received the Commission’s unanimous decision at a public hearing on August 14, 2025, affirming the existence of a ROZ in the Grayburg and San Andres formations within the EMSU and confirming Empire’s exclusive rights to produce the ROZ under the 1984 Commission Order. The Commission is allowing Empire the opportunity to implement a CO2 enhanced oil recovery (EOR) pilot project over the next three years.
In addition to the findings noted above, the Commission unanimously ordered the following actions:
- Deny five new injection well applications from Goodnight Midstream Permian, LLC (Goodnight).
- Deny application for increased injection from Goodnight.
- Suspend injection operations on four existing Goodnight injection wells.
- Deny all pending motions attached to these cases.
The Commission further found that, while Empire did not prove immediate correlative rights impairment in the Grayburg from neighbouring operators’ injection activities, the Company presented compelling evidence of possible future impairment or waste.
Following this outcome, Empire intends to proceed with Motions to Revoke existing permits granted to the remaining third-party saltwater disposal operators disposing wastewater into the EMSU and Unitised Interval of the Arrowhead Grayburg Unit, while concurrently advancing litigation for trespass and damages.
“We are extremely pleased with this unanimous decision, which marks a significant regulatory win for Empire and reinforces our position in New Mexico,” said Phil Mulacek, Chairman of the Board. “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.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/18082025/empire-petroleum-secures-unanimous-victory-to-advance-co-development-and-protect-emsu-assets/