Empyrean Regulatory News (EME)

24 Oct 2007 07:39

Empyrean Energy PLC24 October 2007 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Prospect, ("Sugarloaf"), Block B, Texas USA Kennedy #1H Well---------------- Empyrean Energy Plc advises that at 6am Texas time on 23 October the Kennedy-1exploration well was drilling ahead at a measured depth of 13,481 feet (4,110metres). The planned measured depth of this well is 17,570 feet. Since our last report, casing was successfully run and cemented at a depth of12,719 feet (3,878 metres) followed by the commencement of drilling thehorizontal section of the well within the target Austin Chalk upper zone.Background gas levels within this horizontal section drilled to date havecontinued to be broadly consistent with those reported last week. Sugarloaf-1 Well---------------- Since our last update, the re-frac of the deepest of the three zones of gasshows and log interpreted potential gas pay in the Cretaceous age Austin ChalkFormation was undertaken, with all of the frac proppant injected into theformation as per the program. Flow back operations have recovered over 70% ofthe frac fluid with traces of gas and condensate. Flowing tubing pressures havesteadily declined. The lack of significant hydrocarbon recovery and the flowpressures seen to date indicate that this deepest zone of the Austin Chalk isunlikely to be commercially productive at this location. The forward plan is to continue the flow back to recover additional fluidsfollowed by the acquisition of post frac wire-line logs for a full assessment ofthis zone. The forward program and the timing of testing the two other Austin Chalk zonesin this well will be determined by the joint venture after the current testingoperations are completed and assessed. Further updates will be provided following developments. The information contained in this announcement was completed and reviewed by theTechnical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who hasover 40 years experience as a petroleum geologist. For further information: Jonathan Charles / Ed PortmanConduit PRTel: +44 (0) 207 429 6611 / +44 (0) 7791 892 509 Rod Venables / Cecil JordaanHB CorporateTel: +44(0) 207 510 8600 Empyrean Energy plcTel : +44(0) 207 182 1746 This information is provided by RNS The company news service from the London Stock Exchange