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Last checked at 
20 Jan 2011 07:00
20 January 2011
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 milestones
The following wells have been on production for a period of 30 days and Empyrean is pleased to provide the market with an update on the produced volumes during that period
Working Interest | Total Gas Production (mmscf) | Total Condensate Production (bbls) | Average Daily Equivalent Gas Rate (mmscfe/d)* | Average Daily Equivalent Oil Rate (boe/d)* | |
Urrutia-1H | 3% | 53 | 19,395 | 9.97 | 830 |
Kowalik-1R | 10.2% | 50 | 16,131 | 8.52 | 710 |
·; The equivalent 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 wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed. Empyrean will provide a further update on these wells once they reach the 60 day production milestone.
The following wells have been on production for a period of 60 days and Empyrean can provide the market with an update on the produced volumes during that period.
Working Interest | Total Gas Production (mmscf) | Total Condensate Production (bbls) | Average Daily Equivalent Gas Rate (mmscfe/d)* | Average Daily Equivalent Oil Rate (boe/d)* | |
May-1H | 3% | 115 | 32,674 | 8.93 | 745 |
Luna-1H | 3% | 120 | 39,518 | 10.40 | 866 |
These wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed.
Direct Assets-1H (3% WI)
The remedial operations outlined in our last operational update have now been completed for this well and the final 3 fracture stimulation stages will shortly be carried out leading to a total of 12 stages on this well. Once the stimulation is completed the well will be cleaned up to sales and Empyrean will provide an update to the market once stabilized production rates have been achieved.
Gilley-1H (3% WI)
Drilling operations on this well have been completed and the first 3 stages have been successfully stimulated. However a casing connection has failed and some remedial work will be required on this well before the stimulation operations can be continued. Empyrean will advise the market once this is complete.
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
+618 9388 8041
Shore Capital
Anita Ghanekar
Edward Mansfield
+44 20 7408 4090
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