Empyrean Regulatory News (EME)

14 Jan 2009 07:00



14 January 2009

Empyrean Energy PLC 

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

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

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

Weston-1H

Empyrean has been advised by the Operator Texas Crude Energy Inc (TCEI) that on 13 January 2009 the well was drilling ahead at a measured depth of 12,935 ft within the target horizon of the Austin Chalk. During the week, an additional run was made once the well was landed out to condition and smooth the kick-off bend. Gas levels within the Chalk have increased from a background of 20 - 30 units to approximately 250 units.

Kowalik-1H

Empyrean has also been advised that the well has been cleaned out to the toe of the well (16,480 ft) with 4% KCl and a mud cleaning agent conveyed by coiled tubing. The cleanout removed a number of blockages over the bottom 1,500 ft section of well - a zone which encountered several strong flares during drilling. On initial flowback, the well flowed 131 barrels of oil, 577 thousand cubic feet of gas and 10 barrels of water over a 24 hour period which represents a small increase over the pre-washout rate. The well is continuing to unload.

Now that it has been confirmed that coiled tubing can be run to the bottom of the well, the forward plan for consideration is to conduct an acid stimulation of the bottom section of the well. The use of acid in Sugarloaf Area A wells is believed to have proved beneficial by enhancing the permeability of natural fractures. The timing of this operation is subject to finalisation of program design and availability of equipment.

Further updates will be provided following developments.

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: +44(0) 207 182 1746 

Blue Oar Securities Plc

Olly Cairns / Jerry Keen

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

Jonathan Charles / Fiona Hyland

Conduit PR 

Tel: +44 (0) 207 429 6611 / +44 (0) 7791 892 509