Sugarloaf Update

24 Apr 2007 07:22

Empyrean Energy PLC24 April 2007 Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker: (EME)) Sugarloaf Hosston Prospect, Texas USA ------------------------------------- • Increase in leased acreage over the Sugarloaf Project area During the drilling of the Sugarloaf-1 well Empyrean previously reported tothe market on the 29th September 2006 a 92 feet (28 metres) zone of possiblegas pay, interpreted from wire-line logs and gas shows in Cretaceous agecarbonates which were the secondary target in the well. Since that report,further detailed analysis of the logs has been undertaken by the projectOperator Texas Crude Energy Inc ("TCEI") who advises that this possible payinterval is comprised of 3 zones of porosity which are expected to be testedseparately. Flow testing of the possible pay zones in the Sugarloaf well isintended to be undertaken as soon as practicable. The Operator is presentlyconducting engineering and reservoir studies to determine the best method ofcompleting the zones for testing. Whatever method is chosen it is expectedthat fracture stimulation will be part of the procedure as is typical insuch carbonates. The technical assessment, test design, permitting andsecuring of services is expected to take approximately 2-3 months. As a result of the analysis of this possible pay, the Operator has extended theJoint Venture's land acquisition program within the Area of Mutual Interest("AMI"), increasing the area over which the Joint Venture has rights to alldepths (including the abovementioned carbonate zone) to approximately 19,500acres to date. Operations currently in progress at the well-site include the plugging off of the deeper section of the well and recovery of approximately 15,000 feet of 5 inch tubing (which will be available for re-use in the well if needed), as initial steps required in plugging back and testing the shallower zones. 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 informationLaurence Read/ Ed PortmanConduit PRTel: +44 (0) 207 429 6605/ +44 (0) 7979955923 Empyrean Energy plcTel : +44(0) 207 182 1746 Rod Venables/ Cecil JordaanHB CorporateTel: +44(0) 207 510 8600 This information is provided by RNS The company news service from the London Stock Exchange