Drilling Report

Empyrean Energy PLC
03 July 2007


3 July 2007

                              Empyrean Energy PLC
                  ('Empyrean' or the 'Company'; Ticker: (EME))
                    Project Margarita, Gulf Coast Texas USA

   • Gas discovery at the Dona Carlota-1 well flows 1.02 million cubic feet
     per day on test

AIM quoted Empyrean Energy PLC today announces the following update with
regards Project Margarita:

1. DONA CARLOTA PROSPECT
The operator of the Dona Carlota #1well has advised that production testing of
the Dona Carlota-1 well Frio gas zone has commenced with a gas flow rate of 1.02
million cubic feet per day with no water reported. The test is being carried out
over the gross gas zone of 13.9 metres and net gas pay of 5.6 metres over the
interval 1,423.2 to 1,437.1 metres with gas on rock and no water. The well will
be tied into a nearby sales pipeline.

2. AGAVERO PROSPECT
Preparations for the testing of the Agavero-1 well gas zone over the upper 4.0
metre laminated sand and base 1.5 metre sand interval to evaluate overall
reserve potential are also in progress.

3. CLIMACO PROSPECT
The drilling rig is on location at Climaco-1, the third well in the current
shallow Frio exploration program preparing to commence drilling as soon as
preparations are complete.

The Climaco Prospect is the third of the three prospects that are being drilled
in the current program which are analogues of historic prolific Frio and
Vicksburg sands production in the project area at <2,000 meters depth.

As with the successful wells in the first program, the tie in of any commercial
discovery made on these prospects in this current three well program will be
rapid as the project area is crossed by a number of gas pipelines with access
rights and available capacity.

Participants in the Margarita Project are:

    Empyrean Energy PLC*     44.00%
    Sun Resources NL#        20.00%    
    Victoria Petroleum NL#   20.00%
    Wandoo Energy LLC +      16.00%
                             ------
                             100.00%
# ASX listed
* AIM listed
+ USA Private Interest

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

Charlie Geller/ Ed Portman:        Tel: [phone]                                      
Conduit PR

Rod Venables:                      Tel: [phone]                
HB-Corporate 

Empyrean Energy plc                Tel : [phone]
                                




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