Sugarloaf Project Block B Upd

RNS Number : 7394G

Empyrean Energy PLC

05 February 2010

 

5^th February 2010

Empyrean Energy PLC

('Empyrean' or the 'Company', (EME))

Sugarloaf Project, Block B, onshore Texas, USA.

Empyrean Energy Plc is pleased to provide the market with the following update:

SUGARLOAF OPERATIONS UPDATE

Empyrean has been advised by Texas Crude Energy Inc ("TCEI"), that Hilcorp Energy ("Hilcorp") have exercised their right under the farmout agreement to assume operatorship of activity within the Sugarloaf AMI effective from the 1^st February 2010.  Empyrean welcomes this development but would also like to acknowledge and thank TCEI for the significant role they have played to date in maturing the project to its present status. TCEI remain very actively involved and in particular will continue to manage land related issues.

Easley-1H

The well has reached a depth of 8,362ft having run and cemented the intermediate casing string.  Forward plan is to drill down to the Austin Chalk and Eagle Ford Shale targets with a vertical pilot hole to a planned depth of 11,800ft.  The pilot hole will be logged before sidetracking as a horizontal production well.

Weston-1H

Empyrean has been advised by the Operator, Hilcorp, that fracture stimulation operations commenced at the Weston-1H well on the 4^th February.  The 3,000 ft of horizontal liner will be stimulated in a number of stages.  The fracture design is similar to that recently applied to the Kennedy-1H well with success.  Process equipment and flow lines have already been installed and the well will be flowed to sales during the clean up.

Kennedy-1H

The well continues to clean up with production performance in line with expectation after the recently reported IP rates of 4.4 mmscf/d and 1,130 bcpd.  Production tubing will be installed in this well in due course.

Contact:

Tom Kelly                     Empyrean Energy Plc                Tel: [phone]

Nominated Adviser and Broker:

Jerry Keen                    Astaire Securities Plc                Tel: [phone]

Shane Gallwey              Astaire Securities Plc                Tel: [phone]

 

END

 

 

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