Sugarloaf Block A Update

Empyrean Energy PLC
11 January 2008



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

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

   • TCEI JV Block A # 3 well encounters significant further gas shows and
    flares whilst drilling, and the well was trying to flow naturally, prompting
    an open hole test prior to reaching planned total depth.

Empyrean, the AIM listed oil and gas company with exploration and production
assets in Germany and USA today announces the following regarding Sugarloaf
Block A in Texas, USA:

TCEI JV Block A-3 Well
----------------------

Empyrean has been advised by the operator that significant further gas shows and
multiple gas flares have been encountered over approximately 2,700 feet during
drilling of the horizontal section of the well in the target zone. It is
important to note that the shows and flares were encountered whilst drilling
with relatively heavy mud weight and that the well was observed as trying to
flow naturally. This has prompted the operator to cease drilling at a measured
depth of 15,100 feet prior to the planned total depth of 17,800 feet in order to
carry out a natural open hole test to see if the well will flow commercially
without stimulation.

The drilling rig has been released in order to bring in a workover rig to run
tubing and commence testing as a natural open hole completion. Depending upon
testing results the operator has advised that a water frac may then be used to
enhance flow rates. If non-commercial flow rates are sustained following a water
frac then it is likely the operator will bring the drilling rig back on site to
continue drilling to the original planned total depth.

The testing is expected to commence shortly and a further announcement will be
made when the workover rig arrives on site prior to commencing testing.

The commercial significance of the gas shows will not be known until the full
results of any testing are analyzed.

TCEI JV Block A-1 Well
----------------------

Present operations are the running of 41/2' casing to tie back the 41/2' liner
in the horizontal section of the well all the way back to the surface. This is
being done in order to get a higher pressure rate than the previous 7' casing
would allow, such that effective fracture stimulation can be carried out using a
conventional gel sand frac. The 7' casing did not allow for high enough pressure
to effect the fracture stimulation.

Further updates will be provided as soon as developments occur.

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.

Commenting today, Empyrean director Tom Kelly said: 'The significant gas shows
and flares from the TCEI JV Block A-3 well and the fact that the well was trying
to flow whilst drilling with heavy mud are very positive developments. If the
well flows naturally or with the less expensive water frac, then this is
potentially a very exciting development for the potential of wells in this area. 
In any case this is an exciting well that has encountered several sweet spots
whilst drilling and we look forward to the results of testing'

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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