Empyrean Regulatory News (EME)

20 Nov 2007 08:58

Empyrean Energy PLC20 November 2007 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Prospect, ("Sugarloaf"), Block B, Texas USA ----------------------------------------------------- •Kennedy - 1 Well electric logs indicate several extended zones ofpotential gas pay for testing Empyrean, the AIM listed oil and gas explorer and producer with assets inGermany and USA today announces the following: Kennedy - 1 Well---------------- Well logging operations over the open horizontal portion of the Kennedy-1 wellhave been completed and a 4-1/2 inch liner is presently being run to themeasured total depth of 16,750 feet. Interpretation of the logs indicates several extended zones of potential pay inthe Austin Chalk upper zone. A liner is presently being run as the first step inan extensive fracture stimulation and testing program. The Kennedy-1 well log results are encouraging. We are still in the early stagesof appraising a new reservoir and stratigraphic play which will require thecareful selection of a fracture stimulation program to optimise the flow andrecoverability of hydrocarbons from this horizontal well. A further update willbe given when the date for commencement of the fracture stimulation and testingprogram becomes known. Sugarloaf-1 Well---------------- The well is currently shut-in and the Operator is preparing to run completiontubing in order to carry out longer term production and pressure tests. Since the last report on Wednesday 14th November, gas and condensate productionhas continued to decline and gas, condensate and water flows becameintermittent. During this test period gas was produced at a maximum rate of387,000 cubic feet per day. A total of 51 barrels of condensate and 391 barrelsof water (mostly frac fluid but with formation water being produced in thelatter stages of the test) were also recovered over the period. Analyses of the formation water are characteristic of a formation below theAustin Chalk and it is likely that the frac has penetrated to below the AustinChalk target zone and is allowing water production into the well. Further welltesting will be required in order to confirm the source of the formation waterand hydrocarbons. The Operator, Texas Crude Energy Inc. has advised that it does not expectfurther tests to be carried out on the Sugarloaf 2 and 3 (middle and upper)zones until the test on the Kennedy well has been concluded. 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:Charlie Geller/ Ed PortmanConduit PRTel: +44 (0) 207 429 6605/+44 (0) 7979955923 Rod VenablesHB 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