Empyrean Regulatory News (EME)

2 August 2013

Empyrean Energy PLC

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

Sugarloaf Project: Onshore Texas, USA

Hedging contract with Macquarie Bank Limited

Empyrean Energy Plc (Ticker: EME), the AIM-listed condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA, is pleased to provide the following information on a hedging program commenced to provide oil price certainty on part of expected production from its Sugarloaf Project for 12 months:

Empyrean has entered into a Commodity Swap Transaction ('SWAP") with Macquarie Bank Limited ("Macquarie") for 50,765 Barrels of Oil ("BBL") for a 12 month period commencing 1 September 2013 monthly through to 1 August 2014. The SWAP is for a fixed price per BBL of US$95.90 based on OIL-WTI-NYMEX.

For each calculation period monthly in the table below, which is the period from and including the period start date to and including the next following period end date, if the fixed price exceeds the floating price or spot price for WTI, Macquarie shall pay Empyrean the difference multiplied by the relevant notional quantity for the calculation period. If the floating price or spot price exceeds the fixed price, Empyrean shall pay Macquarie the difference multiplied by the relevant notional quantity for the calculation period.

Calculation Period Table:

This SWAP contract was negotiated on the 31 July 2013 and confirmed on 1 August 2013.

Commenting today, Empyrean CEO, Tom Kelly said "Empyrean has taken advantage of recent strength in the WTI oil price to lock in prices for a portion of its expected oil production for the next 12 months. The hedging is really a form of insurance. The board believes that this initial hedging program is conservative and prudent given the recent rise in WTI oil price and the Company's debt facility with Macquarie Bank."

For further information

Empyrean Energy plc 

Tom Kelly

+618 9480 0111

Shore Capital

Anita Ghanekar

Edward Mansfield

+44 (0) 207 408 4090

Jonathan Charles

Lionsgate Communications

E: jcharles@lionsgatecomms.comM: +44 (0)7791 892509 

www.lionsgatecomms.com 

Notes to Editors:

Empyrean Energy Plc is an AIM listed (Ticker : EME) condensate and gas exploration and production company focused on the Eagle Ford Shale, Texas, USA. Other assets include a 10% working interest in the Riverbend Project, Texas, just north of the prolific Brookeland Field (Austin Chalk) as well as a 57.2% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California.

Empyrean's portfolio includes an interest in over 91 producing wells with scaleable growth potential from further development and exploration upside.