Sugarloaf Update

RNS Number : 7924Z

Empyrean Energy PLC

20 January 2011

 

20 January 2011

Empyrean Energy PLC

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

Sugarloaf Project, ("Sugarloaf"), Block B, Texas USA

Empyrean is pleased to provide the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

Production milestones

The following wells have been on production for a period of 30 days and Empyrean is pleased to provide the market with an update on the produced volumes during that period

	Working Interest	Total Gas Production (mmscf)	Total Condensate Production (bbls)	Average Daily Equivalent Gas Rate (mmscfe/d)*	Average Daily Equivalent Oil Rate (boe/d)*
Urrutia-1H	3%	53	19,395	9.97	830
Kowalik-1R	10.2%	50	16,131	8.52	710

·    The equivalent rates 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 wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed.   Empyrean will provide a further update on these wells once they reach the 60 day production milestone.

The following wells have been on production for a period of 60 days and Empyrean can provide the market with an update on the produced volumes during that period.

	Working Interest	Total Gas Production (mmscf)	Total Condensate Production (bbls)	Average Daily Equivalent Gas Rate (mmscfe/d)*	Average Daily Equivalent Oil Rate (boe/d)*
May-1H	3%	115	32,674	8.93	745
Luna-1H	3%	120	39,518	10.40	866

These wells continue to be produced on a small choke setting with limited declines of tubing head pressure and production rates being observed.  

Direct Assets-1H (3% WI)

The remedial operations outlined in our last operational update have now been completed for this well and the final 3 fracture stimulation stages will shortly be carried out leading to a total of 12 stages on this well.  Once the stimulation is completed the well will be cleaned up to sales and Empyrean will provide an update to the market once stabilized production rates have been achieved.

Gilley-1H (3% WI)

Drilling operations on this well have been completed and the first 3 stages have been successfully stimulated.  However a casing connection has failed and some remedial work will be required on this well before the stimulation operations can be continued.  Empyrean will advise the market once this is complete.

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

[phone]

Shore Capital

Anita Ghanekar

Edward Mansfield

[phone]

 

END

 

 

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