Trading Statement

RNS Number : 2704V

Empyrean Energy PLC

27 May 2008

 

Empyrean Energy PLC 

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

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

• Kennedy #1 well flows gas and condensate from a new pay zone

• New pay zone is 120 feet thick versus 80 feet thick upper zone already producing from two wells in Block A

• This test alone could more than double the potential recoverable reserves from the project

Empyrean, the AIM listed oil and gas explorer and producer with assets in Germany and USA today announces the following:

Kennedy #1 Well 

Empyrean has been advised by Texas Crude Energy Incorporated ('TCEI'), the operator of Block B on the Sugarkane Gas and Condensate field, that production tubing has been successfully installed in Kennedy #1 and the well has been flowed and placed back on well test. The reservoir stimulation program on the Kennedy #1 well commenced on 14 May, 2008 with the hydraulic fracture stimulation ('frac') of an approximate 600 ft zone at the end of the horizontal section of the well via four sets of perforations.

As at 0600hrs (US CST) on the 25th May 2008 the well had produced a total of 1,274 bbls of fracture fluids, 257 bbls of condensate and is continuing to produce small quantities of gas and condensate.  With the production tubing now in place there are several options available to accelerate the recovery of fracture fluid and the potential for additional fracture stimulation along the horizontal section of the well will also be considered. 

Commenting today, Empyrean Executive Director Tom Kelly said 'This is very encouraging news for the project as a whole because we now may have approximately 150% larger potential recoverable volumes when you add this new 'middle pay zone' to the 'upper pay zone' that we had already proven commercial from the testing of the Block A wells. Significantly, this test at Kennedy was a relatively small fracture stimulation conducted over a relatively small horizontal section of the well and we would expect that much better flow rates can be achieved using knowledge gained from these early wells. The completion technique used on this most recent test should measurably improve the production rates for the third potential pay zone, a lower zone some 50 feet thick, which was initially tested by the Sugarloaf-1 vertical well.'  

Further releases will be made as appropriate.

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 

Tel: [phone] 

Rod Venables / Cecil Jordaan 

HB Corporate 

Tel: [phone] 

Jonathan Charles / Ed Portman 

Conduit PR 

Tel: [phone] 

 

END

 

 

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