Empyrean Regulatory News (EME)

18 Feb 2009 07:00



18 February 2009

Empyrean Energy PLC 

("Empyrean" or the "Company"; Ticker: (EME))

Sugarloaf Project, ("Sugarloaf"), Block B, Texas USA

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA, provides the following update on operations on the Sugarloaf Project which is part of the Sugarkane Gas and Condensate Field:

Weston-1H

Empyrean has been advised by the Operator, Texas Crude Energy Inc ("TCEI"), that the production liner has now been successfully run and cemented to a revised measured depth of 15,797 ft. This secures over 3,000 ft of gas bearing matrix Austin Chalk behind pipe for future stimulation.

The Patterson #130 drilling rig was contractually released at 09:00hrs on 15/02/09 (US CST) and the rig has now been demobilised.

The completion of drilling operations at Weston-1H provides the Sugarloaf Joint Venture with three horizontal wells and the following table summarises their status.

All three wells encountered gas charged matrix rock along their length and Kowalik-1H is believed to have encountered natural fractures over the last 1,500 ft of the well. The two wells with cemented liners will need to be fracture stimulated to achieve production. The Joint Venture has learned from the earlier fracture stimulation operations at Kennedy-1H and, based on results from recent fractured wells in the adjacent and on trend acreage, believes that improved results can be achieved when this work is carried out. The production results at Kowalik-1H are not consistent with the indications observed whilst drilling and the Joint Venture is also optimistic that this rate can be improved.

The timing and detailed design of the next completion activity on all three wells is subject to confirmation work by the operator and agreement by the Joint Venture partners. 

Empyrean has a 6% interest in the Weston-1H well.

Further updates will be provided following developments.

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

For further information 

Empyrean Energy plc 

Tom Kelly

Tel: +618 9321 6988 

Blue Oar Securities Plc

Olly Cairns / Jerry Keen

Tel: (+61) 8 6430 1631 / (+44) 207 448 4400 

Jonathan Charles / Fiona Hyland

Conduit PR 

Tel: +44 (0) 207 429 6611 / +44 (0) 7791 892 509