Empyrean Energy

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

http://miningbeat.blogspot.com/2008/11/empyrean-energy-enjoys-sweet-taste-of.html
cyril

Underwhelming

Empyrean has been advised by Texas Crude Energy Inc ('TCEI') that the TCEI JV Block A-5 well has reached total depth of approximately 12,470 feet. Electric logs and casing have been run. The logs indicate that the well intersected the upper, middle and lower potential pay-zones of the Austin Chalk and possibly the Eagleford Shale.

The operator is presently assessing the well data before deciding upon a completion and testing plan.
cyril

am i being even more cynical than usual to observe what they do NOT say?

No, pragmatic.

i shall be accused of rattling the same old tin, but i do very much fear more disappointment in the offing

It's an easy tin to rattle in the current market because even if/when more positive news is released some will be sure to use a rising sp to take profits for applying against other positions which need cash backing. Might as well resign oneself to mediocre gains no matter what.

mediocre gains on EME would surely be like winning the jackpot!
to spell it out, i would find it of some concern that the latest RNS is scarcely positive, and even verging on the negative, or neutral at very best

I must admit to being surprised that given E-logs have been run and they can identify the zones of interest, why there is no mention of the formation quality and contents.

Unusual is the word, I think. As such, price slippage is to be expected IMO.

Not a holder myself, but market clearly unimpressed.

Empyrean has been advised by the operator, Texas Crude Energy Inc ('TCEI'), that at 6am on 11 November 2008, the Kowalik-1H well was flowing un-stimulated to sales on test. During the 24 hour period to 6am the well produced 884,000 cubic feet of gas, 190 barrels of oil and 30 barrels of water. The water production is considered to be predominantly fluids used in the recent cleanout operation. This combined rate is approximately equivalent to 2.8 million cubic feet equivalent gas per day.

Commenting today, Empyrean director - Tom Kelly said ', Empyrean agrees with the Operators interpretation that whilst some 4,600 feet of horizontal well was drilled, it was approximately the last 1,500 feet that was drilled at a specific horizon within the upper chalk which should be pursued in subsequent wells drilled in this area of the field. This particular horizon exhibited the type of gas flares and shows during drilling that indicate better natural fractures and higher permeability. The importance of this is that there is evidence from analogue fields that longer completions drilled in the zones that exhibit better permeability appear to correlate with better flow rates. Importantly - this well is flowing to sales and providing cash flow and we think that future wells that have more than 1,500 feet of good shows and flares will have even better flow rates.'

Empyrean has a working interest of 18% in the above well.

cyril

TCEI JV Block A-1 Well
"Empyrean has been advised by Texas Crude Energy Inc ('TCEI') that the TCEI JV Block A-1 well is flowing to sales after having had a production facility built and optimized.
The reported 7 day average stabilized rate was approximately 200 barrels of oil per day and 650,000 cubic feet of gas per day. This is approximately equivalent to 2.6 million cubic feet of gas equivalent per day.
The well is flowing from a 900 feet interval that had an acid treatment during flow testing. It is the intention of the operator to fracture stimulate this 900 feet of perforations and then add a further 1800 feet to the completion interval for a total of 2700 feet. The additional 1800 feet will also be fracture stimulated if the initial stimulation is successful.
It is expected that the fracture stimulation operations will commence in December 2008 and that the well will continue flowing to sales until then.
Commenting today (13th), Executive Director Tom Kelly said 'This first Block A well flowing to sales is a significant step for the company and paves the way for the A-3 and A-4 wells to be connected to sales now that the operator has finalized optimization of the production facility at the A-1 well. This early work will save time and allow future wells to have production facilities ordered in advance of completion to ultimately allow wells to be brought on to production as soon as possible after drilling.'
Empyrean has a working interest of 7.5% in this well.
Further updates will be provided following developments."

further expectations will prove posative for this company and flow rates will be commercial and exceptional. 110p for empryean energy.

have you said that often? ..... if not, by when are you forcasting 110? ...... within 3 months? .... within 30 years?

Even with the squeeze on Russian oil, I can't see this reaching more than, well, 109p! ;O)

Forecast depends on what you are inhaling at the time.

If anyone here wants to get into another company, that spudded its first well in the Austin Chalks yesterday, look at Pantheon Resources.

Post from another board on a presentation last night with TK.

Met up for over an hour.. TK repeated 'we can only announce facts, the amount of misinterpretation on these BBs is astonishing. If you read the announcements carefully, the potential is obvious if you understand the sector'. 'We cannot influence shorters and cannot do anything about the games played by traders but we have a lot of news coming out over the coming months so things should get sorted out'
What you have to remember that none of these have been stimulated,he thinks that maybe PIs dont appreciate that. Stimulation will increase production by anything up to 6 times. In addition to this, on Kow for example, they are only producing from 1500ft, if they open up the remaining 3,000 ft (which they are looking to do at some point), the pressure may triple and then people will get the flow rates they want. But these are only estimates and not fact until such time as they frac and increase the production line.
cyril

yeah yeah ...... looking at EME's history over the last 12/24 months, their "facts" seem to be regularly distorted, as of course were Mr Timis's!

eme forcasts are said to be 110p within December 2008.