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Empire Petroleum Secures Unanimous Victory to Advance CO鈧� Development and Protect EMSU Assets

TULSA, Okla.--(BUSINESS WIRE)-- Empire Petroleum (NYSE American: EP) (鈥淓mpire鈥� or the 鈥淐ompany鈥�), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, announced the New Mexico Oil Conservation Commission (鈥淣MOCD鈥� or the 鈥淐ommission鈥�) has issued a unanimous and favorable ruling regarding the Company鈥檚 rights to the Residual Oil Zone (鈥淩OZ鈥�) in the Eunice Monument South Unit (鈥淓MSU鈥�) Unitized Interval in Lea County, New Mexico.

After four years of expenditures, Empire received the Commission鈥檚 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鈥檚 exclusive rights to produce the ROZ under the 1984 Commission Order. The Commission is allowing Empire the opportunity to implement a CO鈧� enhanced oil recovery (鈥淓OR鈥�) 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 (鈥淕oodnight鈥�);
• Deny application for increased injection from Goodnight;
• Suspend injection operations on four existing Goodnight injection wells; and
• 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 neighboring operators鈥� 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 Unitized Interval of the Arrowhead Grayburg Unit, while concurrently advancing litigation for trespass and damages.

鈥淲e are extremely pleased with this unanimous decision, which marks a significant regulatory win for Empire and reinforces our position in New Mexico,鈥� said Phil Mulacek, Chairman of the Board. 鈥淚t paves the way for us to move forward with CO鈧� 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.鈥�

Mike Morrisett, President and CEO, added, 鈥淭his 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 realizing 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.鈥�

The full text of the Commission鈥檚 decision will be available on the NMOCD website in the coming days.

ABOUT EMPIRE PETROLEUM

Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with their existing portfolio of wells. More information about Empire can be found at .

SAFE HARBOR STATEMENT

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company鈥檚 estimates, strategy, and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company鈥檚 reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company鈥檚 actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, future commodity prices, the Company鈥檚 ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, including inflation, tariffs and interest rates, uncertainties associated with legal and regulatory matters, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.

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Mike Morrisett

President & CEO

539-444-8002

[email protected]

Kali Carter

Communications & Investor Relations Manager

918-995-5046

[email protected]

Source: Empire Petroleum