Sugarloaf Prospect Update

Empyrean Energy PLC
15 August 2007


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

                  Sugarloaf Prospect, ('Sugarloaf') Texas USA
                  -------------------------------------------

• Sugarloaf-1 testing expected to commence within 2 weeks
• Proposed Sugarloaf-2 (Kennedy-1H) expected to spud mid September

Empyrean provides the following update on the Sugarloaf Prospect as
provided by the operator.

Sugarloaf-1 Well
----------------

The Operator of the Sugarloaf Project (Texas Crude Energy, Inc 'TCEI')
advises that testing of the Cretaceous aged carbonate zone in the
Sugarloaf-1 well is now expected to commence by the last week of this
month due to  the availability of the frac and testing equipment
required to undertake this next well operation.

Empyrean has a 6% working interest in the Sugarloaf-1 well.

Proposed Sugarloaf-2 Well
-------------------------

The Operator has also confirmed that the rig to drill the next well
'Kennedy-1H' (designated Sugarloaf-2 in our previous release) on the
Sugarloaf Joint Venture leases has now been secured and construction of
the drill site has commenced. A contract has been signed for the same
rig that successfully drilled Sugarloaf-1 and which has adequate
capacity to drill this next well. As previously announced, Kennedy-1H is
designed to be drilled as a vertical well to a depth of approximately
12,000 feet at which point the well will be kicked off to drill a 5,000
feet horizontal section into the upper zone of the Cretaceous aged
carbonate reservoir.

On a trouble free basis, Kennedy-1H is expected to take approximately 45
days to be drilled and completed, to be followed by fraccing and testing
operations if successful. The well is expected to spud by mid September,
subject to the timing of the rig's release from the well it is currently
drilling. Empyrean has an 18% working interest in the Kennedy-1H well
(Sugarloaf-2).


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:
Charlie Geller/ Ed Portman
Conduit PR
Tel: [phone]

Empyrean Energy plc
Tel: [phone]

Rod Venables/ Cecil Jordaan
HB Corporate
Tel: [phone]




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