Empyrean Regulatory News (EME)

14 Sep 2007 07:03

Empyrean Energy PLC14 September 2007 14 September 2007 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Bondi Prospect : Texas USA • Empyrean signs Participation Agreement for new deal with Texon E & P, Inc. • 30-76 Bcfe Bondi Prospect to be drilled Q4 2007 • Empyrean earning 15% working interest by paying 20% of costs • Option, following drilling of Bondi Prospect, to drill 28-62 Bcfe Coogee Prospect AIM listed Empyrean is pleased to announce a new Participation Agreement withTexon E & P, Inc, the USA operating subsidiary of ASX listed Texon PetroleumLimited ("Texon" - ASX code TXN) to earn a 15% working interest in Texon's BondiProspect situated onshore in Texas in the Gulf Coast region. The Bondi Prospect is a 30-76 billion cubic feet equivalent ("Bcfe") gas target.The target is the prolific upper Wilcox formation and 3D seismic has been usedto identify the drilling prospects. Under the agreement, Empyrean will fund 20%of the cost of drilling, testing and completing the well in order to earn a 15%working interest. If total costs exceed US$3,840,000 then Empyrean will contribute to further costs at 15% thus capping Empyrean's exposure to anypotential drilling cost blow outs. Empyrean will also reimburse Texon US$90,000, representing 15% of the prospect generation fee, land and lease costs. Following the drilling of the Bondi Prospect, Empyrean will have a 90 day optionto decide to drill, test and subsequently develop the Coogee Prospect, a 28-62 Bcfe target close to the Bondi Prospect. If Empyrean decides to participate on this prospect it will do so on similar terms to the Bondi Prospect and Empyrean will reimburse Texon US$27,000 representing 15% of the prospect generation fee. Following the drilling of the Bondi and Coogee Prospects, Empyrean will earn the right to participate on the basis of a 15% working interest in any prospects to be drilled by Texon on an area of mutual interest covering approximately 25km2.A further update will be made when the spud in date becomes known. For further informationCharlie Geller/ Ed PortmanConduit PRTel: +44 (0) 207 429 6605/+44 (0) 7979955923 Rod VenablesHB-CorporateTel: +44(0) 207 510 8600 Empyrean Energy plcTel : +44 (0) 207 182 1746 This information is provided by RNS The company news service from the London Stock Exchange