Empyrean Regulatory News (EME)

14 October 2010

Empyrean Energy PLC

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

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

Empyrean is pleased to provide the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

Luna-1H

As reported previously, this well was drilled to a depth of 17,370 ft, providing approximately 5,000 ft of horizontal section within the reservoir. The well will be fracture stimulated in due course, in a similar fashion to the other wells within the Eagle Ford Shale trend. This is the second post farmout well within the Sugarloaf Project in which Empyrean has participated.

May -1H

This well has now been drilled and cemented at a final depth of 17,550 ft, providing approximately 5,000 ft of horizontal section within the reservoir. The well will be fracture stimulated in due course, in a similar fashion to the other wells within the Eagle Ford Shale trend. This is the third post farmout well within the Sugarloaf Project in which Empyrean has participated.

Urrutia-1H

The fourth post farmout well within the Sugarloaf Project, Urrutia-1H, has now been drilled to a final depth of 17,411 ft. Preparations are presently underway to run and cement casing which will secure approximately 5,000 ft of horizontal section within the reservoir. Again this well will be fracture stimulated in a similar fashion to the other wells within the Eagle Ford Shale trend.

Direct Assets-1H

The fifth post farmout well within the Sugarloaf Project, Direct Assets -1H, was spudded on the 30th September 2010 and is presently starting to drill the horizontal section of the well.

Kowalik-1R

The fracture stimulation of the Kowalik-1R well was suspended having completed 14 fracture stimulation stages following difficulties in gaining access into the well at a depth of approximately 7,500 ft. Further investigation has revealed damage to the casing although pressure integrity has been maintained. A remedial repair is planned for the damaged casing and then the well will be produced to sales from the existing 14 stages. Empyrean will provide the market with an update when the well has cleaned up.

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.

Contact:

Tom Kelly Empyrean Energy plc Tel: (+61) 8 9321 6988 

Nominated Adviser and Broker:

Shane Gallwey Astaire Securities Plc Tel: (+44) 207 492 4750