Project Margarita Update

Empyrean Energy PLC
28 June 2007





                              Empyrean Energy PLC

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

                    Project Margarita, Gulf Coast Texas USA
                    ---------------------------------------

AIM quoted Empyrean Energy PLC today announces the following update with regards
the drilling program at Margarita:

1. AGAVERO PROSPECT

The operator of the Agavero #1 well has advised that the well has reached total
depth of 1,341 metres (3,500 feet) after intersecting the target Frio V sand.
Wire line electric logs have been run and petrophysical analysis suggests 5.5
metres (18 feet) of gross gas pay on rock with no water from 889.4 meters (2,918
feet) depth.

The Operator has recommended perforation of the whole gross pay zone; the upper
4.0 metre laminated sand first to evaluate its reserve potential and then adding
perforations to the base 1.5 metre sand interval to evaluate overall reserve
potential.

Current activity is running casing to carry out testing back to back with Dona
Carlota.

2. DONA CARLOTA PROSPECT

Testing operations on Dona Carlota #1 should be underway in the next few days.
As previously advised, wet weather and local flooding during the week has denied
access to the well site. Interpretation of wire line logs indicate the target
Frio 1.33 sand in Dona Carlota #1 has a 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.

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

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%
Total                    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
Conduit PR
Tel: [phone]

Empyrean Energy plc
Tel: [phone]

Rod Venables/ Cecil Jordaan
HB Corporate
Tel: [phone]


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