Sugarloaf Project Block B Upd

RNS Number : 1647J

Empyrean Energy PLC

25 March 2010

 

25^th March 2010

Empyrean Energy PLC

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

Sugarloaf Project, Block B, onshore Texas, USA.

SUGARLOAF PROJECT PRODUCTION AND OPERATIONS UPDATE

Empyrean Energy Plc is pleased to provide the market with the following update of operations on Block B at the Sugarloaf Project:

Production

Initial production trends for the Kennedy-1H and the Weston-1H wells are now being established, although neither well has yet had production tubing installed.  Further to previous announcements detailing initial production rates, Empyrean can now provide 30 day average production rates for these wells as follows:

·    Kennedy #1H - 11.7 mmscfe/d*

·    Weston #1H - 11.5 mmscfe/d*

*These figures have been calculated to reflect value using a 12:1 conversion ratio for condensate and a 25% uplift on gas equivalent volumes due to the high calorific value of the produced gas.

These figures are very encouraging and compare favourably with other reported 30 day averages across the Eagle Ford trend, in particular Petrohawk Energy Corporation (NYSE:HK), who recently announced (01/02/10) in their fourth quarter results that 19 wells in the Hawkville Field (located to the south east of Sugarkane within the Eagle Ford Trend) were averaging 7.8 mmscfe/d (12:1 conversion) over their first 30 days of production.

Operations

Morgan-1H - The horizontal section of this well is progressing with the latest reported depth at 16,926 ft which equates to a reservoir section of approximately 4,800 ft.  Once TD is called on this well it will be completed with a cemented casing string and fracture stimulated before being flowed to sales.

Rancho Grande-1H - A drilling rig has been mobilised to the location of this, the third farmin well within the Sugarloaf AMI, and is presently being rigged up.  This well is expected to spud shortly.

Easley-1H - This well is waiting on commencement of fracture stimulation operations and it will then be flowed to sales.

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.

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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