Empyrean Energy PLC
14 April 2008
Empyrean Energy PLC
('Empyrean' or the 'Company'; Ticker: (EME))
Sugarloaf Block A, Texas USA
----------------------------
• Empyrean confirms significant discovery at the Sugarloaf Project area.
• First well tested from five drilled to date (Sugarloaf Blocks A & B)
flows commercial quantities of gas and condensate on test.
• Four further wells which have all encountered hydrocarbon shows
whilst drilling are yet to be tested.
Empyrean, the AIM listed energy company with exploration and
production assets in Germany and USA today announces the following
initial test results from its TCEI JV Block A-3 well on Block A at
the Sugarloaf Project in Texas:
Initial flow testing of the TCEI JV Block A-3 well has recorded flow
rates using 12/64' choke close to 1.9 mmcfgpd (million cubic feet
gas per day) with over 460 bcpd (barrels of condensate per day) and
75 bwpd (barrels of water per day - normal under these
circumstances) with a FTP (Flow Tubing Pressure) of almost 4000 psi.
On the present day prices for condensate and gas whilst converting
the condensate to a gas equivalent, the equivalent gas flow rate
exceeds (using a 10:1 conversion) 6.5 mmcfepd (million cubic feet
gas equivalent per day).
This open hole test has been conducted without stimulation and is
testing the vertical pay section in the upper part of the Cretaceous
Austin Chalk reported in our announcement of 15 November 2007 (peak
readings 350 units - 10 times background levels). The drilling of
this well ceased 2,700 feet short of the proposed length as
significant gas shows and flares whilst drilling were encountered
prompting the operator to prepare the well for an open hole flow
test, to see if the well would flow without stimulation, as reported
in our announcement of 11 January 2008.
Much work is now being conducted to correlate these early results
with that of a similar field in the region to help establish best
practice for completions moving forward on this substantial and
significant gas condensate discovery. The Brookeland Field in Tyler
County is one such field and early comparisons are very favorable. A
typical well drilled by one of the operators in the Brookeland Field
has an approximate equivalent rate of 1.4 mmcfepd per thousand feet
of horizontal (comparing favorably to Empyrean's TCEI JV Block A-3
well at approximately 2.4 mmcfepd per thousand feet of horizontal).
The typical well for one operator at the Brookeland Field has
approximately 12,000 feet of horizontal with average initial rates
of over 16 mmcfepd.
Commenting today, Empyrean Executive Director Tom Kelly said 'The
importance of this comparison is that Empyrean's TCEI JV Block A-3
well has approximately 2800 feet of horizontal and a much higher
equivalent production rate per thousand feet of horizontal well
indicating that at the Sugarloaf Project there is every chance that
better production rates may be able to be gained by increasing the
length of the horizontal portion of the wells.'
After some 20 hours of flow testing the TCEI JV Block A-3 well has
been shut in to conduct pressure measurements and other reservoir
data measurements as part of the normal engineering procedures to
measure the parameters of this discovery. Further testing will be
required to confirm the extent of the reservoir and the field
deliverability. At this early stage there is no clear indication on
the time it will take to determine these important factors.
Empyrean has a 7.5 % working interest in the TCEI JV Block A-3 well
and further announcements will follow as significant developments
come to hand.
Tom Kelly added 'This is terrific news for Empyrean and our
shareholders. The initial recorded flow rates are excellent using a
choke that was not fully opened and the pressure is high. Much is
being learnt from this well and the comparison with Brookeland that
should see many of our future wells flowing even better than this
one. After a very patient wait Empyrean's shareholders are being
rewarded with being part of a major discovery. This is the first
flow test from 5 drilled wells that have all encountered hydrocarbon
shows whilst drilling on this project's extended area. We still have
4 already drilled wells to test which is very exciting. More
importantly, this first well tested has confirmed a significant gas/
condensate discovery, and with oil fetching over US$100 a barrel the
economics are even more attractive.'
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 : +44(0) 207 182 1746
Rod Venables / Cecil Jordaan
HB Corporate
Tel: +44(0) 207 510 8600
Jonathan Charles / Ed Portman
Conduit PR
Tel: +44 (0) 207 429 6611 / +44 (0) 7791 892 509
This information is provided by RNS
The company news service from the London Stock Exchange
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