Empyrean Energy

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

Al take a look at OIL,great news.
cyril

cyril

I did some of the very early Brenda wells a few years back for OIL. It doesn't say how much is net pay, but 452ft gross offers a good hit by the look of it.

Meantime, EME has a disaster really.

Yes Al the "SP" is just that,must admit i sold my nominnee shares but have some
stashed away for Eagle. It desperately needs a good result from the S/Kane wells and even then with the market as it is, i feel it will not hit the highs, short term?
O/Topic, the Huntington field is believed to be the biggest find since Buzzard and with the Mallory having the same common oil, its no wonder why several top
Canadian analysts give it their tip for 2008.
cyril

Empyrean Energy PLC
18 February 2008




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

Projects Update
---------------

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

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

Production continues from three discovery wells that were drilled last year as
part of the six shallow well program at Margarita. For the month of January 2008
gross production from these wells amounted to 32,104 mcf of gas and 1,121 barrels
of oil. Empyrean has a 44% working interest in this project and has been
receiving its share of the production proceeds.

At this stage, Empyrean has elected not to proceed with any of the Margarita
deep prospects as management feel there are better risk versus reward
opportunities elsewhere.

Sugarloaf Block A, Onshore Texas, USA
-------------------------------------

The TCEI JV Block A-1 Well has now had 41/2' casing run that ties the 41/2'
liner in the horizontal section of the well all the way back to the surface.

An attempt to fracture stimulate the first interval has resulted in the frac
sand unable to be pumped even with high pressures (12,000 psi). Initial analysis
suspects poor contact between the casing holes and the reservoir, as this zone
in the reservoir was trying to flow whilst it was being drilled indicating good
permeability. The operator is conducting an analysis of this with a possible
remedy of bringing in a higher calibre perforating gun to gain better contact
with the reservoir.

Empyrean has a 7.5% working interest in this well. A further update will be
given as significant developments occur.

The TCEI JV Block A-2 Well is still planned to be used to monitor the fracture
stimulation of the TCEI JV Block A-1 Well, above, following which it will be
completed for production testing itself.

Empyrean has a 7.5% working interest in this well. A further update will be
provided as significant developments occur.

he TCEI JV Block A-3 Well has had a workover rig arrive on site and currently
there is 7' casing to a depth of 12,272', then a 61/8' open hole to Total Depth at
15,100'. This open hole section of the well was trying to flow whilst being
drilled and is therefore the focus of testing operations on this well. A packer
has been set at 11,507' with 27/8' tubing run back to the surface. The open hole
still has 15.9+/- ppg drilling fluids in it. Present operations are the pulling
of the packer at 11,507' following which the drilling fluids will be cleaned out
of the open hole for an open hole flow test.

As mentioned previously, following the open hole test, fracture stimulation may
be required depending upon flow rates from the open hole test.

Empyrean has a 7.5% working interest in this well. A further update will be
provided as significant developments occur.

Sugarloaf Block B, Texas, USA
-----------------------------

The Sugarloaf-1 Well is currently shut-in awaiting the results of Block A well
testing before the operator concludes plans for completion and testing of the
zones of interest.

Empyrean has a 6.0% working interest in this well. A further update will be
provided as significant developments occur.

The Kennedy-1H Well has had 41/2' liner run from Total Depth back to the
surface. The operator is awaiting the results of Block A well testing before
finalizing completion and testing operations on this well.

Empyrean has an 18.0% working interest in this well. A further update will be
provided as significant developments occur.

Glantal Gas Project, Germany
----------------------------

Empyrean has been working closely with the operator of the Glantal Gas Project,
US based Pannonian International Limited, to finalise plans for a seismic
program to assist in the definition of further drill targets on the massive
Pfalzer Anticline.

A geophysical consultant is also being commissioned to carry out further
analysis of existing seismic data that exists over the Glantal and Lautertal
Prospects.

Early indications are that the future seismic program will have more focus on
the Lautertal area of the Anticline.

A further update will be provided as significant developments occur.

Eagle Oil Pool Development Project, California USA
--------------------------------------------------

The operator, ASX Listed, Victoria Petroleum Ltd ('VicPet') has been attempting
to farm down their interest in this project and attract a new locally based
(USA) operator in to operate.

We are aware that the project was showcased in Houston during the last fortnight
at a major US oil conference and that there has been significant interest in the
project.

Empyrean currently maintains their 38.5% interest in this project and keenly
awaits news of any negotiations with the operator such that a new well can be
drilled on this project as early as possible.

A further update will be provided as significant developments occur.

Corporate
---------

Empyrean currently has approximately 1.46m at bank and is still currently in
credit with the operators of the Sugarloaf/ Sugarkane projects in the USA as
drilling and completion costs have been estimated and paid for in advance.

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.

This has me a little confused as to why they're releasing it and mentioning how much cash they have. Is this the run up to new fundraising? Hmmm.

sounds like more bad news imminent and this is the sugared pill

my thoughts exactly Al, 1.46m doesn't sound a lot with their cash burn...

Should be sub 20p soon.

The update as is, no problem, but the clarification of monies left tends to suggest they will be looking for more money soon, which makes the while update now seem like a precursor to going cap in hand for money.

Present market climate, that might be sub 10p levels..........


Not a good time to be a large EME holder I am afraid, imo.

Glad I'm not the only one reading the same "between the lines" implication.

I'm bound to say you make your own luck to a certain extent in the drilling game and EME made none of the good variety at all. ;-0

They have a nice epic and name.


Nothing much else appeals.

What price a fund raising ?

15p ? 12p ? 10p ?


In its present condition you'd say that 10p is possible, so holders must be hoping for some good news on something soon, at least to offer some downside protection against when the cap is held out for funds. At least if they could get some good news in the weeks and months ahead, it might support say a 20p placing price, but its now in the very high risk category, very high risk, and there is no point in trying to talk it into not being there.

PP - absolutely correct.

50.5m shares in issue and mkt cap around 10m now is not much when you're trying to raise enough dosh to drill in the current climate for rigs and equipment.

I suspect EME is a lost cause, but then I was never much of a bull!

EME certainly has shown that they have no game plan and its management are a bunch of idiots who have no clue at all in the oil business. Who would buy if they place more shares? It is a SELL and nothing else.

bloody hell!- didnt think the rns was that bad. still testing.

The new RNS states they see no reason for the fall in the price. Yeah, right. Shareholders are sick of a constant stream of bad news and they see "better risk / reward opportunities elsewhere"!! ;-))

Said well, that was...

Here it is,
http://www.investegate.co.uk/Article.aspx?id=200802191207193033O
5 Wells to test, all paid for,"what a bargain"
cyril

market rarely gets things wrong .... EME management do nearly all the time

I can't agree with that cynic, i could give you many examples over the last few weeks alone. But lets take TMAN now 31p all on the RNS that a challenge for the
extension to(not the actual) licence to NGPT which puts now their P2 reserves at "JUST 55 CENTS"?
Now lets look at EME, an RNS just a couple of weeks ago and the SP hits 38p,
whats changed, not much really. So they have just 1.46m cash in hand(15.5%
of company value),but all drilling and testing costs have been paid for 5 wells , and as i stated news from one of them was responseable for a sharp increase in the SP,couple this with a small revenue from Margaretta and we have little cash burn. Now i mentioned on several occasions that EME are junior partners, so its
out of their hands(any suggestions on this front).
What we have is a market(especially the aim ) which is more a gambling forum than a means for raising revenve(fundimentals a joke) for companies, which is the supposed purpose?
Yes theirs a chance that all wells will turn out dusters, but thats true of all explorer's.
cyril

Could be a lot of people having to eat humble pie on here!
A large part of the recent drop in the current share price was the decision not to proceed with the Margarita Deeps. Since EME had never committed to being a partner and merely had an option (based on the results of the shallow wells) the decision not to continue may well have been prudent.
The second part of the drop was the announcement of their cash in hand. Many people took this that as a share issue in the offing, despite the RNS tending to suggest the opposite.
So jn fact the drop was caused by negativity based on previous disappointments rather than a fair reading of the information on hand.

I really can't agree with you about AIM, Cyril. It is an excellent market for companies at a certain stage of their development and does attract a fair number of quality companies. The only problem is that in many cases you have to sort the wheat from the chaff very rigourously due to limited sources of information. However I would admit that AIM has underperformed but so has the FTSE small caps, but that basically comes down to risk aversion by the great but not very brave British share-buying public.