Project Margarita Update

Empyrean Energy PLC
09 August 2007



                              Empyrean Energy PLC

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

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

• Completion of the shallow drilling program at Project Margarita

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, that
drilling operations on the three programmed wells within the second phase of the
shallow drilling program of the Margarita Gas Exploration Project have
concluded.

Drilling of these last three wells resulted in 2 commercial gas discoveries
which had been or are currently awaiting connection to gas sales lines. The
discovery wells were Dona Carlota and Agavero with an interpreted gross
recoverable resource of 1.3 billion cubic feet of gas. The Climaco well was
plugged and abandoned after penetrating the objective section and encountering
gas shows, however the gas shows were determined to be non commercial after
running wire line logs. The table below summarizes flow rates and the status of
these phase 2 wells.

Prospect  Total    Current  Status
          Well     Flow Rate
          Depth    mscfd
          metres                                                                
--------------------------------------------------------------------------------
Dona      1,524    500      Gas discovery, well currently producing to sales gas
Carlota            (on      line. Plan to increase sales rate to approx. 1
                   sales)   million cubic feet per day after treatment to the
                            well bore scheduled within one week.
                     
Agavero   1,341    647      Gas discovery flow tested 0. 647 million cubic feet
                   (on flow per day awaiting tie into sales gas line. Gas sales
                   test     are expected to commence within one to two weeks.

Climaco   1,858    No Flow  Plugged & abandoned as non commercial gas well.
                   Test

Commenting on the Margarita Gas Exploration Project outcome, Tom Kelly,
commercial director of Empyrean said:

'A success rate of 3 commercial discoveries from 6 wildcat wells is a terrific
result given that industry statistics are about 1 from 12.

US gas prices are strong and we expect to have approximately 2.3 million cubic
feet of gross gas production per day from all three wells combined - this
initial production and cash flow is a great result'

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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