Empyrean Regulatory News (EME)

21 Apr 2008 07:00

Empyrean Energy PLC21 April 2008 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Block A, Texas USA ---------------------------- - TCEI JV Block A-1 well begins to flow at commercial rates direct to salesline.- Well was being prepared for a fracture stimulation program and was notexpected to flow without stimulation.- Very early encouragement as the well is expected to be stimulated duringforward operations. Empyrean, the AIM listed energy company with exploration and production assetsin Germany and USA today announces the following initial test results from itsTCEI JV Block A-1well on Block A at the Sugarloaf Project in Texas: The TCEI JV Block A-1 well unexpectedly began to flow commercial quantities ofgas and condensate during operations to prepare the well for a fracturestimulation and flow testing program. As of the latest report the well wasflowing at approximately 0.66 mmcfgpd (million cubic feet gas per day) withapproximately 130 bcpd (barrels of condensate per day) and 45 bwpd (barrels ofwater per day) with a FTP (Flow Tubing Pressure) of around 2300 psi. On the present day prices for condensate and gas whilst converting thecondensate to a gas equivalent, the most recent recorded equivalent gas flowrate exceeds (using a 10:1 conversion) 2.0 mmcfepd (million cubic feet gasequivalent per day). The well will now be shut in for a pressure build up test. It is expected thatthis well will be fracture stimulated during forward operations. The exacttiming of the program is not known and will depend on how the well performs inthe coming days without stimulation. Commenting today, Empyrean Executive Director Tom Kelly said "This gas andcondensate flow has come as a very pleasant early surprise as the well was notexpected to flow without stimulation. We could see a multiple on theseproduction rates if fracture stimulation proves successful. This well also hadliner cemented in place whereas future wells are likely to be completed withoutcement using perforated liner slotted into the open hole. We now have 2 wellsflowing commercially from the 5 wells already drilled to date (3 of which areyet to be tested) further de-risking the project." 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