Operations Update

Empyrean Energy PLC
17 October 2006



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


             Operations Update - Eagle North-1 in California, USA


AIM quoted Empyrean Energy Plc today announces the following update on the Eagle
North-1 well, San Joaquin Basin, California, USA.

Victoria Petroleum NL as operator for the Eagle North-1 horizontal well on the
Eagle Oil Pool Development Project in the San Joaquin Basin has advised that the
deep workover rig at the Eagle North-1 location has completed fishing operations
and is currently preparing the Eagle North-1 well bore for a future re-entry and
side track to drill, complete and test the lower Gatchell oil sand zone.

It is not considered cost effective to continue operations to retrieve the
production valve and tubing conveyed guns in the horizontal well bore. The joint
venture partners have decided that the money spent continuing the work over
would best be spent on a future re-entry and side track from the current cased
Eagle North-1 well bore.

Planning has commenced for this future operation with the exact timing of the
operation subject to the availability of the required deep drilling rig,
equipment and personel.

The target zone for the re-entry and side track will be the 177 metres (580
feet) of the lower Mary Bellocchi Gatchell oil sand in the horizontal well bore
over the interval from 4,209 - 4,386 metres (13,810 - 14,390 feet).

The lower Gatchell oil sands have produced at rates of up to 223 barrels of oil
per day and 0.7 million cubic feet of gas per day from the 12 metre (39 feet)
interval of lower Mary Bellocchi sand in the Mary Bellocchi-1 vertical well, 366
metres to the southeast.

A successful Eagle North-1 horizontal well and its subsequent production
performance in the longer term will provide an indication of the potential size
of the Eagle Oil Pool.

Empyrean's Commercial Director, Tom Kelly commented - 'The Eagle Oil Pool
remains a very attractive appraisal target as we know that oil is there - we
just need to flow test.'


The information contained in this announcement has been 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

Angus Prentice/Laurence Read
Conduit PR
Tel: [phone]
Mob: [phone]

Empyrean Energy plc
Tel : [phone]

Imran Ahmad/ Cecil Jordaan
HB-Corporate
Tel: [phone]






                      This information is provided by RNS
            The company news service from the London Stock Exchange