Empyrean Regulatory News (EME)

13 Jan 2010 09:00

13th January 2010

Empyrean Energy PLC

('Empyrean' or the 'Company', (EME))

Riverbend Project, onshore Texas, USA

Empyrean Energy Plc is pleased to announce that it has been advised by Krescent Energy Company LLC ("Krescent"), the operator of the Riverbend Project in Texas, that testing at the Quinn-3H well commenced on January 1st 2010. 

Since testing began the well initially flowed gas at rates ranging and sometimes in excess of 13-15 MMcf/day over acontinuous 32 hour period, including a brief test flow to the sales line at a choked back rate of 3.2 MMcf/day, after having gone through the separating equipment and whilst still cleaning up. The operator then observed further drilling mud and formation debris including small sand like particles and some pebble sized particles unloading from the well and restricting the flow.

The well is currently shut in whilst the operator is assessing the particles to determine suitability for an acid treatment to assist in the well cleanup process or possibly the use of a coiled tubing unit or workover rig to drill out the blockage and restore the well to production and sales. 

The operator advises that other wells in the region have experienced similar characteristics whilst initially cleaning up. 

It is expected that Empyrean will receive the forward clean-up plan within the next few days from the operator and we will make a further announcement at this time.

It is important to note that, although the flow rates stated above are accurate observations that have been reported during initial testing, the well was still unloading drilling mud and debris during the time the observations were taken. These rates are accurate observations only and cannot yet be relied upon as conclusive longer term flows until such time as the well is fully cleaned up and the flows and pressures have stabilised.

Empyrean is earning a 10% working interest in the Riverbend Project.

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

Contact:

Tom Kelly Empyrean Energy Plc Tel: +618 93216988

Nominated Adviser and Broker:

Jerry Keen Astaire Securities Plc Tel: +44 (0) 20 7448 4400 

Shane Gallwey Astaire Securities Plc Tel: +44 (0) 20 7448 4400