Empyrean Regulatory News (EME)

9 Aug 2007 09:25

Empyrean Energy PLC09 August 2007 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Project Margarita, Gulf Coast Texas USA --------------------------------------- • Completion of the shallow drilling program at Project Margarita AIM quoted Empyrean Energy PLC today announces the following update withregards Project Margarita: Empyrean has been advised by the Houston based operator, Wandoo Energy LLC, thatdrilling operations on the three programmed wells within the second phase of theshallow drilling program of the Margarita Gas Exploration Project haveconcluded. Drilling of these last three wells resulted in 2 commercial gas discoverieswhich had been or are currently awaiting connection to gas sales lines. Thediscovery wells were Dona Carlota and Agavero with an interpreted grossrecoverable resource of 1.3 billion cubic feet of gas. The Climaco well wasplugged and abandoned after penetrating the objective section and encounteringgas shows, however the gas shows were determined to be non commercial afterrunning wire line logs. The table below summarizes flow rates and the status ofthese phase 2 wells. Prospect Total Current Status Well Flow Rate Depth mscfd metres --------------------------------------------------------------------------------Dona 1,524 500 Gas discovery, well currently producing to sales gasCarlota (on line. Plan to increase sales rate to approx. 1 sales) million cubic feet per day after treatment to the well bore scheduled within one week. Agavero 1,341 647 Gas discovery flow tested 0. 647 million cubic feet (on flow per day awaiting tie into sales gas line. Gas sales test are expected to commence within one to two weeks. Climaco 1,858 No Flow Plugged & abandoned as non commercial gas well. Test Commenting on the Margarita Gas Exploration Project outcome, Tom Kelly,commercial director of Empyrean said: "A success rate of 3 commercial discoveries from 6 wildcat wells is a terrificresult given that industry statistics are about 1 from 12. US gas prices are strong and we expect to have approximately 2.3 million cubicfeet of gross gas production per day from all three wells combined - thisinitial production and cash flow is a great result" Participants in the Margarita Project are:Empyrean Energy PLC* 44.00%Sun Resources NL# 20.00%Victoria Petroleum NL# 20.00%Wandoo Energy LLC + 16.00%Total: 100.00% # ASX listed* AIM listed+ USA Private Interest 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:Charlie Geller/ Ed Portman Conduit PR Tel: +44 (0) 207 429 6605/ +44 (0) 7979955923 Empyrean Energy plc Tel : +44(0) 207 182 1746 Rod Venables/ Cecil Jordaan HB Corporate Tel: +44(0) 207 510 8600 This information is provided by RNS The company news service from the London Stock Exchange