Empyrean Regulatory News (EME)

2 December 2011

Empyrean Energy Plc

("Empyrean" or the "Company"; Ticker: (EME))

Interim Results for the six months ended 30 September 2011

Empyrean today announces its unaudited interim results for the period ended 30 September 2011.

Highlights for the period

Financial

·; Revenues for the six months to 30 September 2011 of c.£1.2 million.

·; Maiden profit after tax for the six months to 30 September 2011 of £407,000.

Sugarloaf Project

·; Marathon Oil Company ("Marathon") agreed to purchase former operator - Hilcorp Energy Company's interest in the Sugarloaf Project ("Sugarloaf") and a large additional Eagle Ford Shale acreage position.

·; As of 1 November 2011, Marathon became the operator of and joint venture partner to Empyrean's interest in Sugarloaf.

·; The total price paid by Marathon of US$3.5 billion for the total acreage position represents a per acre average price for the acquisition of approximately US$25,000 per acre. The directors believe that a strong case exists for Sugarloaf being valued in excess of this figure on a per acre basis due to the project's position within the high liquids corridor of the Eagle Ford Shale fairway, the number of wells in production and the P1 and P2 reserves position.

·; This case is further strengthened by Netherland Sewell's recent independent reserve assessment which showed a 39.1% increase in proven and probable reserves ("2P") to 3.2 million barrels of oil equivalent and a Net Present Value at 10% discount "NPV10" of 2P reserves of US$57.7 million to Empyrean's share of Sugarloaf (as announced on 28 October 2011).

·; 23 wells now in production at Sugarloaf of an expected 276 well full development scenario.

Tom Kelly, CEO, commented:

"The Eagle Ford Shale continues to be a hive of activity in the USA and we believe that consolidation by the major players is likely to continue. Marathon has shown great faith in the play through their recent acquisition and investment. We have started to discuss plans for a new well at our Eagle Project in California with the operator and are hopeful that we can re-commence exploration there in the second quarter of 2012 with drilling a possibility shortly thereafter. We are obviously very pleased to report a profit for the six months to 30 September and expect that as development at Sugarloaf ramps up in 2012 and beyond Empyrean will experience further strong growth."

Please find below the Chairman's and Technical Director's statement and the interim accounts.

Contact

Tom Kelly Empyrean Energy Plc Tel: +61 8 9388 8041

Nominated Adviser and Broker:

Anita Ghanekar Shore Capital & Corporate Limited Tel: +44 20 7408 4090

Edward Mansfield

Chairman's Statement

I am pleased to report that in the first half of the current financial year Empyrean Energy Plc (the "Company") has generated a profit after tax for the first time. The Company continues its transformation from a purely exploration company into a substantial oil and gas producer, focussing principally on the continuing development of the Sugarloaf Project.

In the Sugarloaf Project, Texas USA, (EME Interest between 3% - 9%) Empyrean retains its working interest in the four producing wells in Block A, and has interests in twenty-three wells in Block B which are already in production. The Company plans to participate in all the production wells being drilled at Sugarloaf, currently planned to number at least 260. Initial estimates indicate the potential recoverable reserves attributable to each producing well could lie between 2-10 billion cubic feet of gas equivalent.

In an eventful six months, Hilcorp Energy Company, the operator of the Sugarloaf Project, onshore Texas, has sold its Eagle Ford Shale acreage to Marathon OilCompany. Marathon is now the operator of the project and a partner to Empyrean. The price agreed for this sale, when broken down into in average $US per acre figure has further strengthened confidence in the value of Empyrean's holding in the field. This value was further underpinned with the independent assessment of reserves and calculation of net present values for the Sugarloaf Project which was assessed by independent petroleum consultants Netherland Sewell & Associates, Inc. and reported in the 2011 Annual Report. We look forward to continuing the development of the Sugarloaf Project with Marathon as the new operator.

The following technical report provides details of all the projects in which Empyrean Energy Plc is currently engaged.

Dr Patrick Cross

Chairman

2 December 2011

Technical Overview

Empyrean Energy Plc ("Empyrean") continued its involvement in 5 separate projects in USA. The Sugarloaf Project onshore Texas has been the focus of all Empyrean drilling activity in the last 6 months. Ever since Hilcorp Energy Company ("Hilcorp") replaced Texas Crude Energy Inc. ("TCEI") as operator of the Sugarloaf Project (Block B) in early 2010, the tempo of development drilling has intensified as has the number of wells being completed as gas- condensate producers.

To date, 23 wells are now producing at Sugarloaf (Block B) with Empyrean holding interests in wells varying from 0.35% to 10.2%, but mostly at 3.0%. Empyrean will hold 3.0% interest in the majority of all future wells in the project where the drilling programme is estimated to include at least another 260 wells for the full development of this part of the Sugarkane gas condensate field.

In the adjacent Block A, Empyrean maintains its 7.5% interest in the four producing wells operated by Conoco-Philips.

Sugarloaf Project

Block B

In Block B, the Lower Cretaceous Eagle Ford Shale has become the principal objective, even though the overlying Austin Chalk still maintains its potential for future exploitation. Each well drilled has been subject to a similar drilling programme. The Eagle Ford Shale consistently lies at about 12,000 ft in this region. The aim is to intercept approximately 5,000 ft of horizontal section and subject it to a procedure whereby the intervals identified during drilling (and identified on logs) as being the more fractured are isolated and fracced using a staged process. This approach by Hilcorp has proved to be ideal for this type of reservoir. It is far more reliable, and eventually less expensive, than the previously employed method of a "one off" fracc procedure over the whole horizontal interval.

In the most recent 2011 Annual Report it was reported that, up until May 2011, 14 post-farmin wells had been spudded, of which 7 were at that time producing. Each of those wells have now been completed and all are now producing gas and condensate to market. PMT - 1H was brought on stream in May 2011, Gilley-1H, Jordan -1H, Davenport- 1H in June, and Best Fenner-1H, Turnbull -6 and Best Huth-1H in July 2011.

A further 5 post farmin wells have been spudded since May 2011 of which one, Yosko Bogfield - 1H, commenced production on the 14 August 2011. The well was drilled to 18,625 ft (MD) in an exceptional 15 days - a record for our project so far.

In all, nineteen post farmin wells have been drilled since the first, Kowalik -1H, was spudded on the 9 July 2010. The drilling time has varied between 15 and 46 days (Turnbull-6); with "trouble free" wells averaging around 20 days, depending on the final measured depth.

Riverbend Project (10%WI)

The Cartwright No 1 well continues to produce gas and minor condensate at reduced rates due to a suspected blockage impediment. No remedial work has been so far carried out.

Hercules Project (10%WI)

The BP America A-740#1 well commenced production to sales on the 4 September 2010. Recent production figures showed 1,018 mscf/d (thousand standard cubic feet per day) and 40 bbls/d (barrels per day). There still remain at least another 3 development wells to fully exploit this field.

Eagle Oil Pool Development Project (48.5%WI)

No further operations have been carried out on this project. The drilling results in adjacent acreage are likely to influence future drilling and geophysical planning activity to best exploit this proven accumulation.

Outlook

Recent transactions in the Eagle Ford Shale and more relevantly within the liquids rich corridor provide great support to the underlying value of the Sugarloaf Project.

The Sugarloaf Project has been independently assessed and we look forward to unlocking fair value as development continues.

Development upside exists at Hercules and we also look forward to re-commencing work at Eagle in 2012.

Mr Frank Brophy BSc (Hons)

Technical Director

2 December 2011

The technical information contained in this report was completed and reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.

Independent review report to Empyrean Energy Plc for the period ended 30 September 2011

Introduction

We have been engaged by Empyrean Energy Plc (the "Company") to review the interim financial statements for the six months ended 30 September 2011 comprising the statement of comprehensive income, statement of financial position, cash flow statement, statement of changes in equity and the related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the interim financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the rules of the London Stock Exchange Plc for companies trading securities on the AIM Market.

As disclosed in Note 1, the accounting policies are consistent with those that the directors intend to use in the next financial statements. The interim financial statements included in this interim financial report have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the interim financial statements in the interim financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review we are not aware of any material modifications that should be made to the financial information as presented in the interim financial statements for the six months ended 30 September 2011.

CHAPMAN DAVIS LLP

Chartered Accountants

2 Chapel Court

London SE1 1HH

2 December 2011

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 SEPTEMBER 2011

All financial results presented are from continued operations.

STATEMENT OF FINANCIAL POSITION

AT 30 SEPTEMBER 2011

STATEMENT OF CASHFLOWS

FOR THE PERIOD ENDED 30 SEPTEMBER 2011

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 SEPTEMBER 2011

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2011

1. Basis of preparation

The interim report has been prepared in accordance with the AIM rules and the basis of accounting policies set out in the accounts for the year to 31 March 2011 and on the basis of all International Financial Reporting Standards (IFRS) that are expected to be applicable to the company's statutory accounts for the year ended 31 March 2011, except as disclosed below. If any amendments, new standards or new interpretations are issued these may require the financial information provided in the interim report to be changed. The interim financial statements do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The interim financial statements have been prepared on a going concern basis in accordance with IFRS and comply with IAS 34.

The amounts in the interim report for the periods ended 30 September 2011 and comparative 30 September 2010 are unaudited. The amounts in this report for the year ended 31 March 2011 are extracted from the audited statutory accounts for that period and as such are not the company's statutory accounts for that financial year. The 31 March 2011 accounts have been reported on by the company's auditors and delivered to the Registrar of Companies and received an unqualified audit report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The interim report of Empyrean Energy Plc was authorised for issue by the Board on 2 December 2011.

Going concern

The directors have a reasonable expectation that Empyrean Energy Plc have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the interim accounts.

2. Segmental Analysis

The primary segmental reporting format is determined to be the geographical segment according to the location of the asset. The Directors consider the Company to have a single business being the exploration for, development and production of oil and gas properties.

There is one geographical trading segment being North America which is involved in the exploration for, development and production of oil and gas properties. The Company's registered office is located in the United Kingdom.