Sugarloaf Project Block B Upd

RNS Number : 5815Q

Empyrean Energy PLC

05 August 2010

 

5^th August 2010

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.

Rancho Grande Production Update

The Rancho Grande-1H well has now reached the 60 day production milestone and achieved the following results:-

	Fractured Horizontal Length (ft)	Total Gas Production (mmscf)	Total Condensate Production   (bbls)	Average Daily Equivalent Gas Rate (mmscfe/d)*
Rancho Grande -1H	4,900	163	57,000	14.9

* The equivalent gas 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.

The Rancho Grande production figures continue to be amongst the best reported across the trend.  

Kowalik-1R Operations Update

The drilling operations on this well are now complete.  The well was drilled to a depth of 18,132ft, providing approximately 6,500 ft of horizontal section within the reservoir.  This is the longest horizontal well that Empyrean has participated in to date and is part of the ongoing efforts to further optimize the economics of each well.  The production casing string has now been run and cemented in place and the rig is demobilizing from this location.  This well will be fracture stimulated, in a similar fashion to the other wells within the Eagle Ford Shale trend, in due course.

Empyrean has a 10.2% working interest in this well and will earn net revenue immediately should the well go into production as this well is not subject to any operator cost recovery.

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] 

Astaire Securities  Plc

Shane Gallwey / Toby Gibbs

Tel: [phone]

 

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