Sugarloaf Project Update

RNS Number : 4268G

Empyrean Energy PLC

01 February 2010

 

1^st February 2010

Empyrean Energy PLC

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

Sugarloaf Project, Block B, onshore Texas, USA.

·    Kennedy-1H well flowing to test equipment and sales following stimulation

Empyrean Energy Plc is pleased to provide the market with the following update on operations at the Kennedy-1H well.

Empyrean has been advised by the Operator, Texas Crude Energy Inc ("TCEI"), that the isolation plugs set as part of the fracture operations have been drilled out and the well commenced unloading at 0100 hrs on Thursday 28th 2010 (USCST).  The initial production rate at 0700 hrs on Saturday 30^th January (USCST) using a 22/64 choke was 4.39 mmscf/d gas and 1,132 bpd of condensate. The water production rate, from the recovery of frac fluids, was 408 bwpd.

Whilst these initial rates are very encouraging, the following points should be noted:-

·      This is an initial production rate during clean up and is not yet indicative of a short or long term production profile.

·      The well still has considerable fluids to recover from the fracture stimulation operations.

·      The well is flowing from approximately 2,200 ft of stimulated Eagle Ford Shale with the remainder of the 4,000 ft horizontal liner isolated and not contributing.

·      The well is currently producing through the 7" production casing, a production tubing string will be installed in due course.

Empyrean Executive Director Tom Kelly commented "We have a very encouraging initial gas rate with a high condensate ratio at this early stage of testing.  The high condensate ratio is significant for the commerciality of the well and wider field. We look forward to seeing how the well performs following clean-up and also the imminent fracture stimulation of the Weston-1H well."

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]

 

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