Last checked at 4 Jun 2010 07:00
4th June 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.
Production Update
The recently completed Morgan-1H and Easley-1H wells have now been on production for sufficient time to provide the following first 30 day production figures:-
|
| Total Gas Production (mmscf) | Total Condensate Production (bbls) | Average Daily Equivalent Gas Rate (mmscfe/d)* |
| Morgan-1H | 109.4 | 38,500 | 19.97 |
| Easley-1H | 125.9 | 12,212 | 10.13 |
* The equivalent gas rates have been calculated to reflect value using a 12:1 conversion ratio for condensate and a 25% uplift on gas equivalent volumes due to the high calorific value of the produced gas.
These additional production figures continue to be very encouraging for the economics of the field.
Rancho Grande -1H
Empyrean has been advised by the Operator that the multi-stage fracture stimulation operation of the Rancho Grande #1H well has now been completed and the well is presently unloading. A production update will be provided to the market once stabilised flow has been achieved.
Kowalik-2
Empyrean has been advised by the Operator that the Kowalik-1 well location will be twinned with a new well, which is planned to spud in July 2010. This decision has been made in light of the sub-optimal original well design for the now preferred completion activities and the previously reported operational difficulties at the well. The Kowalik redrill will be the first of a number of Sugarloaf wells to be drilled during this calendar year where all Joint Venture partners will contribute to costs and derive revenue on a post farm out basis. Because of Empyrean's increased working interest in the original Kowalik well the company will hold an 9% working interest in the planned redrill.
A further announcement will be made as significant developments occur.
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
Astaire Securities Plc
Shane Gallwey / Jerry Keen
Tel: +44 (0)207 448 4400