Sugarloaf Update Block A

RNS Number : 1168H

Empyrean Energy PLC

31 October 2008

 



31 October 2008

Empyrean Energy PLC 

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

Sugarloaf Prospect, ('Sugarloaf'), Block A, Texas USA

• TCEI JV Block A-4 well flows gas and condensate on test at commercial rates  

• Well to be connected to sales pipeline and put on long term production  

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA, provides the following update on operations on Block A which is part of the Sugarkane Gas and Condensate Field:

TCEI JV Block A-4 Well 

Empyrean has been advised by Texas Crude Energy Inc ('TCEI') that the well has been opened to flow during testing and has flowed on a choked back basis using 10/64' choke at initial rates as high as 2.5 million cubic feet of gas per day ('mmcfgpd') and 260 barrels of oil per day ('bopd') with flow tubing pressure of 4400 psi. This equates approximately to a gas equivalent rate (10:1) of 5.1 million cubic feet of gas equivalent per day.

Flow rates over the test period have consistently been in excess of 2.0 mmcfgpd and 200 bopd using 10/64' choke. During flow back operations the well has continued to clean up. It is understood that the operator intends to continue flow back and testing for a day or so and then shut the well in temporarily while production facilities and a sales pipeline are connected to the well. Pipeline sales are typically with the well wide open at a flow tubing pressure of 1000 psi.

Preparations for the sales pipeline connection and production facility have already commenced. The pipeline and facility are expected to be connected during December 2008.

Commenting today, Empyrean Executive Director - Tom Kelly said 'This un-stimulated flow from a 1500 odd foot interval of horizontal well is a great result for the A-4 well. This further de-risks the project and provides another successful well that will shortly go into production to a sales pipeline. There is still great potential for wells that have longer horizontal completions in the productive zone to have even better or multiples of these flow rates without stimulation - and we already know that stimulation can achieve excellent results.'

Empyrean has a working interest of 7.5% in this well.

Further updates will be provided upon significant developments

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 

Tom Kelly

Tel: [phone]  

Blue Oar Securities Plc

Olly Cairns / Jerry Keen

Tel: [phone] 

Conduit PR 

Jonathan Charles / Fiona Hyland

Tel: [phone]

 

END

 

 

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