Empyrean Energy

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

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

Eme will reveal all potential soon at the Sugarloaf-1 and upward, will be noticed.

Worth digesting the oil-barrel article before making a decision, this is a news driven company and charts will have little bearing on the end game?
imv
cyril

??

API Number: 42-297-34790 Location: Live Oak , Texas
Current Well Type: Active Permit Status: drilling in progress
Current Lease Name: BAKER FAMILY TRUST

Event: Other Event Date: 07/28/2008 09:00 Event Depth:

Operator (ph): BURLINGTON RESOURCES O & G CO LP Well Number: 2

Drilling Contractor: Rig Number:
Company Man:
Location:
Tubing Depth1: Tubing Size1:
Tubing Depth2: Tubing Size2:

Liner Top: Liner Bottom: Liner Size:
Casing Depth: Casing Size:
Cementer:
Comments: CALLED TO NOTIFY THAT THEY WERE GOING TO SET TWO KICKOFF PLUGS (WHIPSTOCKS) FOR ORPHAN PILOT WELL BETWEEN 0900 AND 1200 ON 7-28-08

cyril

Meridian Reports Test Results of BSM A-507 No. 1 Well in East Texas Austin Chalk Play
HOUSTON, Aug. 12, 2008 (PRIME NEWSWIRE) -- The Meridian Resource Corporation (NYSE:TMR) today announced initial production test results on its Blackstone Minerals A-507 No. 1 ("BSM") well, located in Polk County, Texas in the Company's East Texas Austin Chalk Play. The well was recently tested over a several day period at gross daily flow rates as high as 20 million cubic feet of natural gas per day ("Mmcf/d") and 6,200 barrels of oil per day ("Bopd"). Flowing tubing pressure was measured at approximately 1,300 pounds per square inch ("psi") through an open choke. The well was drilled vertically to approximately 13,000 feet then added two horizontal laterals. The first lateral extends approximately 5,400 feet in length with the second extending approximately 6,200 feet for a total wellbore exposure in the Austin Chalk of 11,600 feet.
The dual lateral well was placed on production shortly after the start of the test, and is still in a "clean-up" of drilling fluids phase with intermittent fluctuations normally experienced during the first several day phases of production for wells similarly drilled and produced in the area. The well is currently producing between 11 and 17 Mmcf/d into sales relative to pipeline pressure constraints, in addition to approximately 4,200 Bopd. The Company expects that the well will display similar producing characteristics to other Austin Chalk wells in the area, with the typical hyperbolic decline curve from current production levels during the coming months. However it can be noted that the initial test rate for this well is one of the best in this area. This well is located approximately 5 miles southeast of Leggett, Texas. Meridian owns approximately 38% working interest in this well (26% net).
cyril

Empryean energy is getting closer to revealinng the full amount of reserves at the Sugarloaf-1. Massive.!

interesting to watch with sp hovering on 200 dma!

Weekly update,
Empyrean has been advised by the operator of the Sugarloaf AMI, Texas Crude Energy Inc ('TCEI'), that as of 06:00hrs 19/08/08 (US CST) the Kowalik #1H pilot hole had been logged and plugged back. The logs from this step out well have shown the expected correlation to previous wells. The pilot hole is presently being sidetracked and will then be built to near horizontal by the top of the target chalk formation, at which point production casing will be run. Thereafter, the remaining build section will be completed and the horizontal wellbore will target the upper pay interval that has successfully produced in the TCEI JV Block A-1 and A-3 wells.
cyril

APPOINTMENT OF FINANCE DIRECTOR

The Board of Empyrean is pleased to advise that Mr John Laycock has been appointed Finance Director (Non - Executive), with effect from today. His appointment will be part time and assisted by the Company's existing Company Secretary and Financial Controller, Jade Styants.

Mr Laycock is a chartered management accountant, holds a degree in Mechanical Engineering (B.Sc. Hons) and has over 36 years experience in corporate finance and financial risk management predominately within the oil and gas industries.

Mr Laycock will be based in the UK and will assist the board in key finance, treasury, financial reporting and corporate services.

Chairman Dr Patrick Cross commented: 'I am delighted to welcome Mr Laycock to the Board of Empyrean. He has a wealth of financial expertise, with over 30 years experience in international business, including 22 years in oil and gas with British Petroleum plc. He will make a substantial contribution to the future corporate strategy and growth plans of the Company.'

The Board welcomes John to the Company and looks forward to his contribution.

Disclosure of Directorships under schedule 2 of the AIM Rules

John Hugh Spencer Laycock, aged 55, is or has been a Director of the following companies during the previous five years:

Current Directorships:
Empyrean Energy plc
Directorships held within the previous five years:
None
cyril

Copied from another board,

Interpreting todays statement on Kowalik 1H well, i.e. The logs from this step out well have shown the expected correlation to previous wells (i.e. A1 & A3).

The logs back in May 08,on A1 indicated the following:-

Reported "spectacular condensate, gas flows"from its TCEI JV Block A-1 well on Block A at the Sugarloaf Project in Texas.
The well is flowing at an average rate of over 950 barrels of condensate
with an average rate of over 2.5 million cubic feet of gas being an equivalent
of around 12 million cubic feet equivalent gas per day, the company said in a
statement.


It just gets better and better.

Copied from another board,

Interpreting todays statement on Kowalik 1H well, i.e. The logs from this step out well have shown the expected correlation to previous wells (i.e. A1 & A3).

The logs back in May 08,on A1 indicated the following:-

Reported "spectacular condensate, gas flows"from its TCEI JV Block A-1 well on Block A at the Sugarloaf Project in Texas.
The well is flowing at an average rate of over 950 barrels of condensate
with an average rate of over 2.5 million cubic feet of gas being an equivalent
of around 12 million cubic feet equivalent gas per day, the company said in a
statement.
It just gets better and better.

With todays news of a need for a Financial director sends imho a positive message?
cyril

NOC, I agree with you that this stock looks better and better and whilst there is never a racing certainty with anything, this is actually looking like the next best thing. But when is the sp going to respond northwards? Why does the market seem to think that this is going to track sideways, giving others loads of time to make up their mind whether to buy? I accept that the market as a whole is lousy right now but that doesn't mean that there is no money available to invest in those companies with better prospects.

market is not only generally weak, but i dare say many (like myself) will believe EME when they actually come up with the results they keep promising for a change

Thats why you bought into IEC at 11+ and myself 3, but reading your posts over time i see a changing stance?
cyril