Empyrean Energy

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

It would be nice, what do you think the chances are Al?

Now there's the $64000 question. I tend to go by past performance, kimoldfield, and EME have flattered to deceive on most occasions. It's no secret I'm no bull of them. ;-))

I somrtimes wonder? Here's a well reasoned post from elsewhere posted yesterday,
prior to todays news.


This mornings RNS has IMHO definately not been understood correctly by the wider market. We have been going through and exploration phase on this find over the past 18 months. We are now entering the development and production phase.

We have two new production wells in the process of being drilled Baker 2 and Kowalik that will both have 6000ft horizontal completion.

We have EME telling us this morning that:

"Notably, the Sugarkane Field is over pressured, has a higher porosity and a higher condensate to gas ratio than the classic Austin Chalk fields."

and

"The Sugarkane Field is interpreted to cover an identified area exceeding 200,000 acres with potential gross reserves estimated at greater than 3 Tcf of gas and approximately 700 million barrels of condensate making it potentially one of the largest undeveloped gas and condensate fields within North America."

Kennedy is an exploration well that has a 17ft perforation over a 600ft length in zone 2. It's purpose to date was to try and prove flow from the so far unproductive zone 2. It has acheived this goal even though it does not have the ideal completion.
The coming weeks and months are going to be a very exciting time for EME and I for one am very happy to be holding shares in this excellent prospect.

cyril

A very simplistic view I know, but I suppose if they are extracting some gas/oil there is the chance that there is still a lot more to be had: it could be a gas/oli klondike?! Or not!! Live in hope eh?!

A nice 20% plus tick up today. To think you were able to buy these sub 30p yesterday
cyril

Nice progress from eme and on going as the sugarloaf-1 will prove to be out standing with the addition of vast high reserves when the 55p level is brokien then it onwards to 1.12p to 1.20p.

http://www.endevcoinc.com/media/index.html
cyril

Update on the ASX.com.au via AUT.
cyril

From the EKA report, a 6000ft horizontal targeting the upper interval where it
is reported that 3 wells are successfully producing gas and condensate?
cyril

Posted on an aussie forum, make of it what you will?

I was alerted to this forum by a fellow Karnes County resident; I'd like to share some on-the-ground knowledge re: the Kowalik well. We own the property immediately adjacent to the drill site and included in the pooled acreage since it is over the horizontal run. I've attached a photo of the rig taken last week. We received a call from Texas Crude yesterday wanting to negotiate a pipeline easement across our property "by the end of the week." They sent out surveyors today and should have a plat back to us tomorrow. Texas Crude is working quickly to get a pipeline laid to connect the well into the Houston Pipeline (high pressure gas) approximately a mile away.
cyril

Looks like a few shorters scurrying for cover on this one. Very wise in my view since EME must be nearing some potentially spectacular news if the drilling is going to plan.

Eme is building up the price as increased suddendly. An update or news release with greatdetails is hovvering around various city financial people. This is a good sign that the fracturing as out standing results in Texas. Watch this accelerate.

Latest update to be found on the, ASX, AUT company annoucements.
cyril

There is and as yet nothing to get excited about.

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=AUT


AUT 0.305(AU$) -3.17% accompanies this.................

Seems there was a lot of speculation prior to results? Kowalik-1H was never expected to complete at this moment, a whole lot more work needed.
cyril

EME's report.
RNS Number : 2125B
Empyrean Energy PLC
13 August 2008

13 August 2008

Empyrean Energy PLC

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

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



Kowalik #1H Well vertical pilot hole completed and about to log and then drill horizontal

Kennedy #1H well to have production facility installed to place on long term production



Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA provides the following update on operations on Block B which is part of the Sugarkane Gas and Condensate Field:



Kowalik #1H Well

Empyrean has been advised by the operator of the Sugarloaf area of mutual interest, Texas Crude Energy Inc ('TCEI'), that as of 06:00hrs 12/08/08 (US CST) the Kowalik #1H well had reached the vertical pilot hole target depth of 11,970 feet and the operator was running wireline logs. Elevated gas readings increased from a background of 120 units to approximately 400 units when drilling through the Austin Chalk interval.

Once logged, the vertical pilot hole is planned to be plugged back and then directionally sidetracked to the top of the chalk before casing is run prior to drilling the horizontal section. The well is planned to have a horizontal section targeting the same interval that has produced in the TCEI JV Block A-1 and A-3 wells.

Kennedy #1H Well



Empyrean has been advised by TCEI that the well is currently shut-in while the Operator prepares to install a production facility and tie-in the well to a nearby gas transmission line.



At the time of shut-in the well was producing at approximately 180,000 cubic feet of gas per day, 33 barrels of condensate per day and minor amounts of water (frac fluid).



A decision as to whether to perforate and fracture stimulate the additional 3000 feet of lateral section will be made following further analysis of the performance of the well during production.
cyril

Details emerging. Empryean Energy was at 37.5p haveing earlier extented Mondays strong share price gain to reach 40p as suggested posative news was in the pipeline from its gas projects in Texas. The Sugarloaf-1.

We now have Gas production, yet the sp drops!

http://www.oilbarrel.com/home.html


Oil Barrel 14 August 2008

Empyrean Energy Takes Encouragement From Kowalik-1H Drilling As Sugarloaf Project Sustains Forward Momentum

The London-based Empyrean Energy continues to make good progress with its high impact Sugarloaf project in Texas, sustaining the forward momentum from work carried out earlier this year.

With some established production behind it from the Margarita project on the Gulf coast the AIM-listed group has always been taken seriously by investors. By and large, it has been insulated from the slings and arrows of outrageous fortune that have struck down many a peer E&P firm in recent times.

If anything, the only erratic share price movements have been upwards. In April, Empyrean shares surged almost 90 per cent on news that a well on Sugarloaf tested commercial quantities of gas and condensate.

At the time, this was the first of a series of discoveries to test in the project area with the Texas Crude Energy joint venture block A-3 well flowing at 1.9 million cubic feet of gas per day and over 460 barrels of condensate per day. The company has subsequently talked of flow rates significantly above this.

However, Empyreans shares have been known to drift following these lofty peaks, something that may only be remedied once more production starts seeping through.

In its most recent update, Empyrean said that early gas readings from the Kowalik-1H well, now underway, were above expectations. It said that elevated gas readings increased from a background of 120 units to approximately 400 units when drilling through the Austin Chalk interval.

Operator Texas Crude Energy is targeting the same interval that produced in the earlier Block A-1 and A-3 wells. It plans to use horizontal drilling to access the interval. The well has now reached the vertical pilot hole target depth of 11,970 feet, which will be used as a start point for directional drilling to access the target area.

These are early findings and early days. As oilbarrel.com noted in its last coverage of Empyrean at the start of July, caution is necessary with the Austin Chalk reservoir.

Nonetheless, in the Austin Chalk some 5 tcf of gas and 600 million barrels of oil have been produced from the Giddings and Pearsall fields alone. Though Empyrean is the smaller partner here these numbers most certainly are not.

Empyrean also updated investors this week on the Kennedy-1H well, which could be the fresh production investors are seeking. This is currently shut-in as the operator installs a production facility to tie-in the well to a nearby gas transmission line.

Remember also that this is an area of the US with extensive energy infrastructure ready to eat up any new gas supply that comes along.

At the time of shut-in the well was producing at approximately 180,000 cubic feet of gas per day, slightly lower than earlier figures released, and 33 barrels of condensate per day.

Texas Crude Energy plans to monitor initial production performance from the well to assess whether to perforate and fracture stimulate the additional 3,000 feet of lateral section.

What can be said is that output from Sugarloaf seems likely to be an exponential step up from what is being produced from Margarita. In time, the operator is expecting a 44 well development on Empyreans acreage, and in a mature gas-hungry market such as the US this is a big deal.
cyril

you all know i don't like this company, but the following is objective ...... insofar as charts have any value, note the (potentially) stern resistance at exactly this point .... sp made a very modest challenge to break this over the last couple of days, but now see how it is falling back below ...... keep watching