Project Margarita Update

Empyrean Energy PLC
06 August 2007




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

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

• Agavero flows gas on production test at rate of 642,000 cubic feet per day
• Dona Carlota discovery connected to sales pipeline
• Climaco encounters gas shows whilst drilling

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

AGAVERO WELL

Successful production testing has been completed at the Agavero well with an
initial flow rate of 642,000 cubic feet of gas per day being recorded on 10/64'
choke.

The well will now be tied into a nearby pipeline that crosses the lease to
commence sales.

DONA CARLOTA WELL

The Dona Carlota well has now been successfully connected to the gas sales
pipeline and sales have commenced.

CLIMACO WELL

The Climaco well has reached a depth of 1,830 metres. Recent gas shows of up to
10 times the background gas reading have necessitated an increase in the
drilling mud weight. The present plan is to raise the mud weight and then drill
ahead to the anticipated total depth of 2,067 metres.

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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