Empyrean Regulatory News (EME)

8 Oct 2008 07:21



8 October 2008

Empyrean Energy PLC 

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

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

Kennedy well commences commercial production to sales

Kennedy production is from the middle pay zone

This production has significant positive impact on the overall reserves potential of the Sugarkane Gas and Condensate Field

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA provides the following update on operations on Block B which is part of the Sugarkane Gas and Condensate Field:

Kennedy #1H 

Empyrean has been advised by the operator, Texas Crude Energy Inc ("TCEI"), that commercial production commenced at Kennedy #1H at initial rates of 0.2 million standard cubic feet per day and 60 barrels of condensate per day on the 02/10/08 (US CST). This initial Kennedy production comes from a fracture stimulated zone of approximately 600ft in the bottom of the 4,000 ft horizontal section of the well drilled through a lower stratigraphic level to that currently being drilled at Kowalik #1H. To our knowledge this represents the first production from this level within the Sugarkane Field. 

Kowalik #1H Well 

TCEI have also reported that at 06:00hrs on the 08/10/08 (US CST) the well had reached a measured depth of 16,178 ft, which equates to approximately 4,350ft of horizontal section within the Austin Chalk.

The well has continued to produce gas whilst drilling, with regular intervals producing strong flares with back pressure on the well. The rig has consistently measured gas readings in excess of 2,000 units.

Whilst encouraging the commercial significance of these gas shows and flares will not be known until the well has been flow tested.

The horizontal section is targeting the upper pay interval that has been reported as successfully producing gas and condensate in Block A (TCEI JV Block A-1 and A-3 wells).

Further updates will be provided following developments.

Empyrean has a working interest of 18% in this well.

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.

Commenting today, Empyrean Director Tom Kelly said - "This first commercial production from Kennedy in the middle pay zone is very exciting as it confirms the middle pay zone as being commercially productive. The middle zone has the potential to hold greater reserves than the upper zone. We think there is also vast room for improvement in flow rates from this zone"

For further information 

Empyrean Energy plc 

Tom Kelly

Tel: +44(0) 207 182 1746 

Blue Oar Securities Plc

Olly Cairns / Jerry Keen

Tel: (+61) 8 6430 1631 / (+44) 207 448 4400 

Jonathan Charles 

Conduit PR 

Tel: +44 (0) 207 429 6611