Empyrean Energy

Web site : http://www.empyreanenergy.com

Empyrean Energy PLC
06 August 2007




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

Project Margarita, Gulf Coast Texas USA
---------------------------------------

Agavero flows gas on production test at rate of 642,000 cubic feet per day
Dona Carlota discovery connected to sales pipeline
Climaco encounters gas shows whilst drilling

AIM quoted Empyrean Energy PLC today announces the following update with regards
Project Margarita:

AGAVERO WELL

Successful production testing has been completed at the Agavero well with an
initial flow rate of 642,000 cubic feet of gas per day being recorded on 10/64'
choke.

The well will now be tied into a nearby pipeline that crosses the lease to
commence sales.

DONA CARLOTA WELL

The Dona Carlota well has now been successfully connected to the gas sales
pipeline and sales have commenced.

CLIMACO WELL

The Climaco well has reached a depth of 1,830 metres. Recent gas shows of up to
10 times the background gas reading have necessitated an increase in the
drilling mud weight. The present plan is to raise the mud weight and then drill
ahead to the anticipated total depth of 2,067 metres.

Empyrean Energy PLC
09 August 2007



Empyrean Energy PLC

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

Project Margarita, Gulf Coast Texas USA
---------------------------------------

Completion of the shallow drilling program at Project Margarita

AIM quoted Empyrean Energy PLC today announces the following update with
regards Project Margarita:

Empyrean has been advised by the Houston based operator, Wandoo Energy LLC, that
drilling operations on the three programmed wells within the second phase of the
shallow drilling program of the Margarita Gas Exploration Project have
concluded.

Drilling of these last three wells resulted in 2 commercial gas discoveries
which had been or are currently awaiting connection to gas sales lines. The
discovery wells were Dona Carlota and Agavero with an interpreted gross
recoverable resource of 1.3 billion cubic feet of gas. The Climaco well was
plugged and abandoned after penetrating the objective section and encountering
gas shows, however the gas shows were determined to be non commercial after
running wire line logs. The table below summarizes flow rates and the status of
these phase 2 wells.

Prospect Total Current Status
Well Flow Rate
Depth mscfd
metres
--------------------------------------------------------------------------------
Dona 1,524 500 Gas discovery, well currently producing to sales gas
Carlota (on line. Plan to increase sales rate to approx. 1
sales) million cubic feet per day after treatment to the
well bore scheduled within one week.

Agavero 1,341 647 Gas discovery flow tested 0. 647 million cubic feet
(on flow per day awaiting tie into sales gas line. Gas sales
test are expected to commence within one to two weeks.

Climaco 1,858 No Flow Plugged & abandoned as non commercial gas well.
Test

Commenting on the Margarita Gas Exploration Project outcome, Tom Kelly,
commercial director of Empyrean said:

'A success rate of 3 commercial discoveries from 6 wildcat wells is a terrific
result given that industry statistics are about 1 from 12.

US gas prices are strong and we expect to have approximately 2.3 million cubic
feet of gross gas production per day from all three wells combined - this
initial production and cash flow is a great result'

Participants in the Margarita Project are:
Empyrean Energy PLC* 44.00%
Sun Resources NL# 20.00%
Victoria Petroleum NL# 20.00%
Wandoo Energy LLC + 16.00%
Total: 100.00%

# ASX listed
* AIM listed
+ USA Private Interest

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.

I'd take issue with the "great result" bit. The area being drilled is very well known and 3 from 6 is average at best IMO. As for the numbers, 44% of everything together will provide cashflow, but hardly company-making is it?

........... but then the chart says it all really, I guess. A bit of leveraged trader froth last month and they move on? ;-))))))

Hello?

Expect an RNS later today? news from our JVP's is that fraccing of S/L1 is expected
to commence EOM, with S/L2 expected to spud mid Sept.
cyril

RNS today:
LONDON (Thomson Financial) - "Empyrean Energy PLC said testing at the Sugarloaf-1 well is expected to start within two weeks and the proposed Sugarloaf-2 well is expected to spud in mid-September.

The operator of Sugarloaf-1, Texas Crude Energy Inc, said the testing can start by the last week of August because the frac and testing equipment is available.

At the Sugarloaf-2 prospect, the operator has confirmed that the Kennedy-1H drill rig has been secured and construction at the drill site has started

The well is expected to spud by mid September and the Kennedy-1H is expected to take 45 days to be drilled and completed, followed by fraccing and testing if successful.

Empyrean has a 6 pct working interest in Sugarloaf-1 and an 18 pct interest in Sugarloaf-2."

The oil rig to be used for S/L2 is the most powerful in Texas, its the same one which drilled S/L1. It is planned to drill to just 12,00ft before kicking off to a
5000ft horizontal section in the upper zone of the cretaceus aged carbonate
reservoir. One hell of a big rig to perform this task, don't you think?
"O the pressure,the pressure"
cyril

cyril

You need a fairly hefty land rig for this drilling work. Drill to 12000ft and kick off to do a 5000ft horizontal bore requires a bit of power.

;-))

Meanwhile, the share price sits on critical support IMO. How many were smart enough to take a profit last month?

Gapped down through support. Doesn't look too clever now, does it? Where did those bulls go? ;-0

Sold months ago! Dusted myself off & haven't looked back.
Looking at the chart, I don't think I have missed anything!
Although I know you were in the business, interesting that you still follow this one, Al. Almost as if you wish............

I'm intrigued to know if my reading between the lines of the RNS's is correct. I'm happy with my "hit rate" so far. LOL

Long term, price will be determined by the drill bit and the testing thereafter...

I go out a few weeks ago at .65p sold 20,000 shares. I am not buying back in at this price. You may be able to top up a lot cheaper soon the way the market is going at the moment. I saved my self 6000 selling up and was 2000 down on them at that time. |Good luck to all holding.

phew! delighted to hear it janet ..... hope you are not getting itchy fingers either

Long term sucks around here, John. ;-)))

Long term sucks in a lot of the oil juniors at the moment, Al, MXP got really cremated today and it has real prospects. Some of these companies will make it and the potential upside keeps getting better at the moment. When and who you buy that's another matter...LOL

Al as far as the rig is concerned, yes a powerful is regd,but we are talking the
"most" powerful rig in Texas. Regards to the holding of stock is much hindsight(yes i
expected some retracement but not on this scale), it would have been better to have sold high, but with news out almost any day soon what price to get in? Much of the SP is down to the dire state of the market,and who can hold their hand up and say it was going to get this bad.
For myself i closed all S/Bets,(EME at 66p) and chose to hold on to the others, as i bought at 27p. Now what to do, is the question, i certainly will not be selling now with news so close.If we check the news given on the 25th July from
Well 1 Block A, 1500ft of the 4000ft horizontal drainhole was complete, news that drilling is at 4ft/hr is almost 100ft/day so 25 days to complete ,which brings us to the 20th Aug for possible news.
If this is as big as being made out to be then the MM's will put a pretty hefty
mark up, so anyone who is thinking of buying back in, then theirs a very good
opportunity to get in at a possible barguin price. No guarantee's to whether it has
bottomed or the outcome of the drilling, thats for each to make their own
decision on. As i said i've stay in,whatever one does, best of luck.
aimo
cyril

A bit of a boing today.

Cyril - do you have a link to the rig owner's website? I've tried to Google it, but it won't come up. I'd be interested in the specs.

The well is 17000ft plus build section so this is a long well. I'm intrigued by the 4 ft/hr bit as well. They'd be real smart to get it away in 45 days at that rate, even if it's just the horizontal section.

Al i don't have that link, but i'l try and get it. Its the giant Patterson;s rig.
cyril

For those swing trading, now is the time to buy imo.

Coming few weeks the rampers will be working hard pumping EME into the SL-1 testing and results.