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19 Nov 2009 07:00
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19thΒ NovemberΒ 2009
Empyrean Energy PLC
('Empyrean'Β or theΒ 'Company',Β (EME))
SugarloafΒ Project,Β Block B,Β onshore Texas, USA.
Empyrean Energy PlcΒ isΒ pleased to provide the market with an update on preparations within the Sugarloaf Area of Mutual Interest ("AMI") for the first phase of farm-inΒ work scopeΒ as outlined in the recent announcement dated 6thΒ October 2009.
The detailed planning for the fracture stimulation of each of the three horizontal wells has now been completed. The operator of the Sugarloaf Project,Β Texas Crude Energy Inc ("TCEI"),Β intends to carry out 'multi -staged' fracture stimulations along the horizontal section of each of theΒ Kennedy-1H, Kowalik-1HΒ and Weston-1HΒ wells. Each stage will be individually hydraulically stimulated using a design that has proved effective elsewhere in the play, that stage is then isolated and the process repeated further up the liner. At Kowalik-1H, where it was not possible to recover the slotted liner, the slotted section will be stimulated with a single larger treatment and the conventional solid section of the liner will be treated in a similar fashion to the other two wells. Once treated,Β the wellsΒ will beΒ brought on line to sales.
Each well has now been prepared with the productionΒ tubing being pulled at Kennedy -1H and Kowalik-1H. The horizontal liners of all three wells are presently being washed out and clean water left behind ahead of the stimulations.Β
At Weston-1H, production facilities are being installed, including a pipeline connection to the Kennedy-1H location to utilise the existing tie-in to a major export gas pipeline.
Progress to date and the availability of equipment indicates that the likely start of the fracture operations will be during December. Each stimulation will take approximately 10 - 14 days. A further announcement will be made when these operations commence.
Following the successful farm-out to Hilcorp Energy, Empyrean retains the following working interestsΒ ("WI")Β in Block B wells:
Kennedy-1H 9%Β WI
Kowalik-1H 10.2%Β WI
Weston-1H 3%Β WI
Future Block B wells 3%Β WI
Contact:
Tom Kelly Empyrean Energy Plc Tel:Β +618 93216988
Nominated Adviser and Broker:
Jerry Keen AstaireΒ Securities Plc Tel:Β +44 (0)Β 20 7448 4400Β
Shane Gallwey AstaireΒ Securities Plc Tel: +44 (0) 20 7448 4400
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