Empyrean Regulatory News (EME)

18 Feb 2008 07:54

Empyrean Energy PLC18 February 2008 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Projects Update --------------- AIM listed Empyrean, the oil and gas explorer and producer with assets inGermany and the USA, today announces the following general projects update: Margarita Project, Gulf Coast Texas, USA---------------------------------------- Production continues from three discovery wells that were drilled last year aspart of the six shallow well program at Margarita. For the month of January 2008gross production from these wells amounted to 32,104 mcf of gas and 1,121 barrelsof oil. Empyrean has a 44% working interest in this project and has beenreceiving its share of the production proceeds. At this stage, Empyrean has elected not to proceed with any of the Margaritadeep prospects as management feel there are better risk versus rewardopportunities elsewhere. Sugarloaf Block A, Onshore Texas, USA------------------------------------- The TCEI JV Block A-1 Well has now had 41/2" casing run that ties the 41/2"liner in the horizontal section of the well all the way back to the surface. An attempt to fracture stimulate the first interval has resulted in the fracsand unable to be pumped even with high pressures (12,000 psi). Initial analysissuspects poor contact between the casing holes and the reservoir, as this zonein the reservoir was trying to flow whilst it was being drilled indicating goodpermeability. The operator is conducting an analysis of this with a possibleremedy of bringing in a higher calibre perforating gun to gain better contactwith the reservoir. Empyrean has a 7.5% working interest in this well. A further update will begiven as significant developments occur. The TCEI JV Block A-2 Well is still planned to be used to monitor the fracturestimulation of the TCEI JV Block A-1 Well, above, following which it will becompleted for production testing itself. Empyrean has a 7.5% working interest in this well. A further update will beprovided as significant developments occur. he TCEI JV Block A-3 Well has had a workover rig arrive on site and currentlythere is 7' casing to a depth of 12,272', then a 61/8" open hole to Total Depth at15,100'. This open hole section of the well was trying to flow whilst beingdrilled and is therefore the focus of testing operations on this well. A packerhas been set at 11,507' with 27/8" tubing run back to the surface. The open holestill has 15.9+/- ppg drilling fluids in it. Present operations are the pullingof the packer at 11,507' following which the drilling fluids will be cleaned outof the open hole for an open hole flow test. As mentioned previously, following the open hole test, fracture stimulation maybe required depending upon flow rates from the open hole test. Empyrean has a 7.5% working interest in this well. A further update will beprovided as significant developments occur. Sugarloaf Block B, Texas, USA----------------------------- The Sugarloaf-1 Well is currently shut-in awaiting the results of Block A welltesting before the operator concludes plans for completion and testing of thezones of interest. Empyrean has a 6.0% working interest in this well. A further update will beprovided as significant developments occur. The Kennedy-1H Well has had 41/2" liner run from Total Depth back to thesurface. The operator is awaiting the results of Block A well testing beforefinalizing completion and testing operations on this well. Empyrean has an 18.0% working interest in this well. A further update will beprovided as significant developments occur. Glantal Gas Project, Germany---------------------------- Empyrean has been working closely with the operator of the Glantal Gas Project,US based Pannonian International Limited, to finalise plans for a seismicprogram to assist in the definition of further drill targets on the massivePfalzer Anticline. A geophysical consultant is also being commissioned to carry out furtheranalysis of existing seismic data that exists over the Glantal and LautertalProspects. Early indications are that the future seismic program will have more focus onthe Lautertal area of the Anticline. A further update will be provided as significant developments occur. Eagle Oil Pool Development Project, California USA-------------------------------------------------- The operator, ASX Listed, Victoria Petroleum Ltd ("VicPet") has been attemptingto farm down their interest in this project and attract a new locally based(USA) operator in to operate. We are aware that the project was showcased in Houston during the last fortnightat a major US oil conference and that there has been significant interest in theproject. Empyrean currently maintains their 38.5% interest in this project and keenlyawaits news of any negotiations with the operator such that a new well can bedrilled on this project as early as possible. A further update will be provided as significant developments occur. Corporate--------- Empyrean currently has approximately £1.46m at bank and is still currently incredit with the operators of the Sugarloaf/ Sugarkane projects in the USA asdrilling and completion costs have been estimated and paid for in advance. 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:Empyrean Energy plcTel : +44(0) 207 182 1746 Rod Venables / Cecil JordaanHB CorporateTel: +44(0) 207 510 8600 Jonathan Charles / Ed PortmanConduit PRTel: +44 (0) 207 429 6611 / +44 (0) 7791 892 509 This information is provided by RNS The company news service from the London Stock Exchange