Sugarloaf Update

Empyrean Energy PLC
24 October 2007


                              
                               Empyrean Energy PLC
                  ('Empyrean' or the 'Company'; Ticker: (EME))
             Sugarloaf Prospect, ('Sugarloaf'), Block B, Texas USA


Kennedy #1H Well
----------------

Empyrean Energy Plc advises that at 6am Texas time on 23 October the Kennedy-1
exploration well was drilling ahead at a measured depth of 13,481 feet (4,110
metres). The planned measured depth of this well is 17,570 feet.

Since our last report, casing was successfully run and cemented at a depth of
12,719 feet (3,878 metres) followed by the commencement of drilling the
horizontal section of the well within the target Austin Chalk upper zone.
Background gas levels within this horizontal section drilled to date have
continued to be broadly consistent with those reported last week.

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

Since our last update, the re-frac of the deepest of the three zones of gas
shows and log interpreted potential gas pay in the Cretaceous age Austin Chalk
Formation was undertaken, with all of the frac proppant injected into the
formation as per the program. Flow back operations have recovered over 70% of
the frac fluid with traces of gas and condensate. Flowing tubing pressures have
steadily declined. The lack of significant hydrocarbon recovery and the flow
pressures seen to date indicate that this deepest zone of the Austin Chalk is
unlikely to be commercially productive at this location.

The forward plan is to continue the flow back to recover additional fluids
followed by the acquisition of post frac wire-line logs for a full assessment of
this zone.

The forward program and the timing of testing the two other Austin Chalk zones
in this well will be determined by the joint venture after the current testing
operations are completed and assessed.

Further updates will be provided following 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:

Jonathan Charles / Ed Portman
Conduit PR
Tel: [phone]

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

Empyrean Energy plc
Tel : [phone]



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