Project Margarita Update

Empyrean Energy PLC
17 July 2007





                              Empyrean Energy PLC

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

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

• Dona Carlota-1 production tests at CAOF of 20.5 million cubic feet per
  day

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

Empyrean has been advised by the Houston based operator Wandoo Energy LLC
following further production testing at Dona Carlota-1, including a four point
test, that the Calculated Absolute Open Flow Rate (CAOF) for the Dona Carlota-1
well is 20.5 million cubic feet of gas per day.

While the Dona Carlota-1 well will not be produced at this CAOF rate into the
sales gas pipeline when connected at the end of July 2007, the high CAOF rate
demonstrates the excellent gas deliverability of the target Frio sand. An
initial sales production rate of 1 million cubic feet per day of gas is
anticipated from the 14 metre gross gas column and net pay of 5.6 metres over
the interval 1,423 - 1,437 metres.

Production testing continues at the Agavero gas discovery while drilling at
Climaco-1 continues from the current depth of 1,106 metres towards the Vicksburg
target at approximately 1,800 metres.

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%
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]/
+44 (0) [phone]

Empyrean Energy plc
Tel: [phone]

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



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