Empyrean Regulatory News (EME)

28 Jul 2006 13:30

Empyrean Energy PLC28 July 2006 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME) Projects Update--------------- - Glantal testing operations completed in Germany- Eagle North -1 testing in California, USA- Sugarloaf Hosston Prospect in Texas Glantal-1AIM quoted Empyrean Energy PLC today announces that testing operations of the intervals considered to be most likely to produce gas at Glantal-1 well have been completed. In addition to the results of the testing of the first two zones reported in the previous announcement of the 19th of July 06, the operator Pannonian International Ltd ( "Pannonian"), a wholly owned subsidiary of U.S.- based Galaxy Energy Corporation ( Amex: GAX), has reported that the higher zones 3 and 4 have produced similar results. Zone 3 1228 -1249m exhibited the best permeability of all the zones tested andyielded 92 gallons (249 litres) of connate water and no significant gas during a4 hour flow period. Zone 4 1205-1220m yielded a very small amount of flammable gas to surface duringthe flow periods with no discernible formation water retrieved. Since the four zones tested were considered to be the most likely to flow gas ,the results confirmed that no further testing of this first well was warrantedand the partners unanimously decided to plug and abandon the well. This finaloperation is underway. Pre-drill mapping has always shown substantial compartmentalisation ofreservoirs over this giant anticlinal structure and the drilling of Glantal-1was able to prove that the required seal quality lithology is present on themassive Pfalzer Anticline. Althought the test results were disappointing, theyhave done nothing to impede planning for further exploration of the prospect.More specifically, preliminary preparations are already underway to acquire newseismic data over selected portions of the anticline to better locate furtherdrilling locations in blocks lying updip of the Glantal-1 well. Eagle North -1Production testing operations are likely to recommence in the near future. Theoperator , Victoria Petroleum NL, has advised that the completion rig, which hasbeen contracted for the continuation of production testing at Eagle North-1well, is nearing the end of its present operation and will then be relocated tothe Eagle North-1 location immediately. Sugarloaf Hosston DrillingDrilling preparations are underway at the multi TCF gas potential SugarloafHosston Prospect in Texas. Drilling is scheduled to commence as soon as thecontracted rig is released from present operations. A further announcement willbe made as soon as this happens and a spud in date becomes clear. The information contained in this announcement was completed and reviewed by theTechnical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who hasover 40 years experience as a petroleum geologist. For further information Angus Prentice/Laurence ReadConduit PRTel: +44 (0) 207 429 6603 Mob: +44 (0) 79974 982512 Patrick Cross- ChairmanEmpyrean Energy plcTel: +44 (0) 207 932 2442 Imran Ahmad / Cecil JordaanHB CorporateTel: +44 (0) 207 510 8600 This information is provided by RNS The company news service from the London Stock Exchange