Empyrean Regulatory News (EME)

4 Dec 2006 09:10

Empyrean Energy PLC04 December 2006 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Hosston Prospect, Texas USA Sugarloaf-1, Primary target- Wire-line log Interpretation ---------------------------------------------------------- AIM quoted Empyrean Energy PLC today announces that wire-line logs weresuccessfully run over the open hole section of the Sugarloaf-1 well between16,998 feet (5,182 metres) and total depth of 20,896 feet (6,371 metres). Interpretation of wire-line logs over the primary target indicates that anaggregate of 90 feet (27.4 metres) of potential reservoir are gas saturated andmay be capable of commercial production after fracture stimulation. Based on the log interpretation and the gas indications obtained while drilling,the well participants have elected to run and cement a production liner,fracture stimulate and test the zones of potential interest. The total cost ofthese operations is estimated to be US$2 million. By 6am Texas time on 3 December 2006, the production liner was in the process ofbeing run to total depth prior to the well being prepared for temporarysuspension so that the deep drilling rig can be released. Preparation of the well for fracture stimulation and flow testing will becarried out with a smaller work-over rig. An update on the timing of thefracture stimulation and flow testing operations will be provided when theequipment has been contracted. After the primary target has been tested the joint venture will make a decisionon production testing the shallower carbonate reservoirs previously identifiedas potentially productive. 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 Laurence Read/ Ed Portman Conduit PR Tel: +44 (0) 207 429 6605/ +44 (0) 7979955923 Empyrean 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