Projects Update

Empyrean Energy PLC
18 February 2008




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

                                Projects Update
                                ---------------

AIM listed Empyrean, the oil and gas explorer and producer with assets in
Germany and the USA, today announces the following general projects update:

Margarita Project, Gulf Coast Texas, USA
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Production continues from three discovery wells that were drilled last year as
part of the six shallow well program at Margarita. For the month of January 2008
gross production from these wells amounted to 32,104 mcf of gas and 1,121 barrels
of oil. Empyrean has a 44% working interest in this project and has been
receiving its share of the production proceeds.

At this stage, Empyrean has elected not to proceed with any of the Margarita
deep prospects as management feel there are better risk versus reward
opportunities elsewhere.

Sugarloaf Block A, Onshore Texas, USA
-------------------------------------

The TCEI JV Block A-1 Well has now had 41/2' casing run that ties the 41/2'
liner in the horizontal section of the well all the way back to the surface.

An attempt to fracture stimulate the first interval has resulted in the frac
sand unable to be pumped even with high pressures (12,000 psi). Initial analysis
suspects poor contact between the casing holes and the reservoir, as this zone
in the reservoir was trying to flow whilst it was being drilled indicating good
permeability. The operator is conducting an analysis of this with a possible
remedy of bringing in a higher calibre perforating gun to gain better contact
with the reservoir.

Empyrean has a 7.5% working interest in this well. A further update will be
given as significant developments occur.

The TCEI JV Block A-2 Well is still planned to be used to monitor the fracture
stimulation of the TCEI JV Block A-1 Well, above, following which it will be
completed for production testing itself.

Empyrean has a 7.5% working interest in this well. A further update will be
provided as significant developments occur.

he TCEI JV Block A-3 Well has had a workover rig arrive on site and currently
there is 7' casing to a depth of 12,272', then a 61/8' open hole to Total Depth at
15,100'. This open hole section of the well was trying to flow whilst being
drilled and is therefore the focus of testing operations on this well. A packer
has been set at 11,507' with 27/8' tubing run back to the surface. The open hole
still has 15.9+/- ppg drilling fluids in it. Present operations are the pulling
of the packer at 11,507' following which the drilling fluids will be cleaned out
of the open hole for an open hole flow test.

As mentioned previously, following the open hole test, fracture stimulation may
be required depending upon flow rates from the open hole test.

Empyrean has a 7.5% working interest in this well. A further update will be
provided as significant developments occur.

Sugarloaf Block B, Texas, USA
-----------------------------

The Sugarloaf-1 Well is currently shut-in awaiting the results of Block A well
testing before the operator concludes plans for completion and testing of the
zones of interest.

Empyrean has a 6.0% working interest in this well. A further update will be
provided as significant developments occur.

The Kennedy-1H Well has had 41/2' liner run from Total Depth back to the
surface. The operator is awaiting the results of Block A well testing before
finalizing completion and testing operations on this well.

Empyrean has an 18.0% working interest in this well. A further update will be
provided as significant developments occur.

Glantal Gas Project, Germany
----------------------------

Empyrean has been working closely with the operator of the Glantal Gas Project,
US based Pannonian International Limited, to finalise plans for a seismic
program to assist in the definition of further drill targets on the massive
Pfalzer Anticline.

A geophysical consultant is also being commissioned to carry out further
analysis of existing seismic data that exists over the Glantal and Lautertal
Prospects.

Early indications are that the future seismic program will have more focus on
the Lautertal area of the Anticline.

A further update will be provided as significant developments occur.

Eagle Oil Pool Development Project, California USA
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The operator, ASX Listed, Victoria Petroleum Ltd ('VicPet') has been attempting
to farm down their interest in this project and attract a new locally based
(USA) operator in to operate.

We are aware that the project was showcased in Houston during the last fortnight
at a major US oil conference and that there has been significant interest in the
project.

Empyrean currently maintains their 38.5% interest in this project and keenly
awaits news of any negotiations with the operator such that a new well can be
drilled on this project as early as possible.

A further update will be provided as significant developments occur.

Corporate
---------

Empyrean currently has approximately £1.46m at bank and is still currently in
credit with the operators of the Sugarloaf/ Sugarkane projects in the USA as
drilling and completion costs have been estimated and paid for in advance.

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:
Empyrean Energy plc
Tel : [phone]

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

Jonathan Charles / Ed Portman
Conduit PR
Tel: [phone]




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