Empyrean Regulatory News (EME)

7 May 2008 07:05

Empyrean Energy PLC07 May 2008 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Prospect, ("Sugarloaf"), Block B, Texas USA ----------------------------------------------------- Empyrean, the AIM listed oil and gas explorer and producer with assets inGermany and USA today announces the following: Kennedy #1 Well Empyrean is pleased to announce that it has been advised by Texas Crude EnergyInternational ("TCEI"), the operator of Block B on the Sugarkane Gas andCondensate Field, that preparations for fracture operations have commenced onthe Kennedy #1 well. The well has been completed with a 4 1/2" cemented liner with an effective totaldepth of 16,530 feet. The liner has been previously cleaned out and by 06:00 hrson 6th May 2008 (US CST) four intervals in the deepest quarter of the hole hadbeen perforated using coiled tubing and a tractor assembly. The well has now been shut in with down hole gauges for pressure monitoringuntil final preparations start later this week for the fracture operations. Thefracture stimulation is presently scheduled to commence on Friday 9th May,depending on equipment availability. Vertical wells drilled so far at Sugarloaf (Sugarloaf-1 well & TCEI Block A-2well) have intersected three broad potential pay zones whilst drilling. Thesecan be broadly categorised into "upper", "middle" and "lower" potential payzones. The 80 feet thick upper pay zone has now been proven productive with theTCEI Block A-1 and A-3 wells. The 120 feet thick middle potential pay zone hasnot yet been flow tested. The bottom part of this zone is expected to be testedby the TCEI Block A-2 vertical well. The 50 feet thick lower potential pay zonehas been proven to contain gas and condensate (during initial testing atSugarloaf-1) but has not yet proven commercial. Recent analysis of the Kennedy #1 well suggests that the horizontal portion ofthe well predominantly drilled a deeper chalk zone (i.e. the middle potentialpay zone) in addition to the upper zone that is producing gas and condensatefrom the TCEI Block A-1 and A-3 wells. The perforations are expected to test thetop part of the middle potential pay zone. A successful test of this middlepotential pay zone, either from the Kennedy #1 well or the TCEI Block A-2vertical well, may provide significant additional potential recoverablereserves. If the middle potential pay zone is not productive it does not affectthe potential of the upper zone that is already producing from the TCEI BlockA-1 and A-3 wells. Empyrean has a 7.5% working interest in the TCEI Block A-1, A-2 and A-3 wells.In addition it has a 6% working interest in the Sugarloaf-1 well and a 18%working interest in the Kennedy #1 well on Block B. Further updates will be provided following developments. 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