Empyrean Energy

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

cynic reverts to swearing no need just because you have lost money. Its a later date.

See 1772 ;-)

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

Weston well reaches target zone with increased background gas readings observed

Weston -1H Well

Empyrean has been advised by the operator, Texas Crude Energy Inc ('TCEI'), that on the 9th December the well was at a depth of 13,013 ft and has been drilled into the Austin Chalk with an increase in background gas. The final casing string is now being run in the hole and once cemented preparations will take place for the drilling of the horizontal well section.

The well is targeting the upper chalk interval that has successfully produced gas and condensate in Block A wells (A-1, A-3 & A-4 wells) on the adjacent acreage and at the Kowalik-1H well. The well design continues to build upon the knowledge gained from recent operations and offset data.

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

Not much to get excited about there, I guess.

Its a posative start for potential to arrive for Eme very undervalued for this company and still worth investing for the Sugarloaf will be highly productive.

OK, thanks shadow. Back to sleep.

Highly productive??? Is that a X'mas joke?

Not yet you plonkers it takes a while.

Yes we know. Back to sleep.

Time to wake up eme moveing its only the market that effects companies nothing wrong with here look at VGAS from 20p to 60p 200% rise.

VGAS has nothing to do with this stock! (& only reason they are up is 'cos court proceedings against them have been dropped & sp is now 42p, not 60p)

70p harry cat for Vgas, plus news in for eme as wells at the sugarloaf are successfull, with better advantage to come good.

if EME had good news in today, then clearly no one other than you was much impressed

Yep, back to sleep. ;-)

VGAS ..... 22083 shares traded today and it jumps 40%+??????? ..... yes, you saw both numbers correctly

RNS Number : 0444K
Empyrean Energy PLC
12 December 2008

12 December 2008

Empyrean Energy Plc
("Empyrean" or the "Company"; Ticker: (EME))

Interim Results for the six months ended 30 September 2008

Empyrean today announces its interim results for the period ended 30 September 2008.
Please find below the Chairman's statement,
together with an operational report and the interim accounts.

HIGHLIGHTS

* All nine wells drilled to date at the Sugarloaf Project have encountered
hydrocarbons whilst drilling and five have successfully
tested gas and condensate
* Production commenced from three wells at the Sugarloaf Project with two already
tested wells to come on to sales shortly
* The Weston-1H well at the Sugarloaf Project has reached the target zone and is
currently drilling the horizontal with elevated gas
readings being observed upon entry into the target zone
* Appointment of Finance Director, John Laycock and new Nominated Adviser and Broker,
Blue Oar Securities Plc

For further information
Empyrean Energy plc Tom Kelly
Tel: +44 207 182 1746

Blue Oar Securities Plc Olly Cairns / Jerry Keen
Tel: +61 8 6430 1631 / +44
207 448 4400
Conduit PR Jonathan Charles / Fiona
Hyland Tel: +44 207 429 6611 / +44
7791 892 509


CHAIRMAN'S STATEMENT

Overview

It is with pleasure that I am able to report that Empyrean is continuing to grow, in
particular with progress at the Sugarloaf Project
in Texas, USA. In the last six months, Empyrean has energetically participated in further
appraisal and development of wells (nine drilled
or drilling to date) at the Sugarloaf Project in both Block A and Block B, and during the
period commenced drilling on a further three
wells.

After the initial discovery in the shallowest of the three potential pay zones in Block A
was confirmed in April 2008, the TCEI JV Block
A-1 well has been producing gas and condensate to market from a relatively short interval of
some 900 feet. The operator intends to increase
this interval and possibly fracture stimulate with a view to enhancing production. These
operations have commenced. The TCEI JV Block A-3
well, also successfully tested, is soon to be connected to sales after production facilities
are designed and constructed based on the
experience gained at the TCEI JV Block A-1 well.

Two more wells commenced during the reporting period in Block A. The first of these wells,
TCEI JV Block A-4 well, has a horizontal
section in the upper pay zone, and is now in the process of being connected to sales. TCEI JV
Block A-5 well commenced drilling during the
period and is a vertical well targeting all three potential pay zones. This well successfully
reached the target depth and intersected all
three potential pay zones and is due to be tested shortly. It is envisaged that the operator
will test the middle pay zone and lower pay
zone, before testing the already proven upper zone and possibly combining production from all
zones if possible and successful. The Middle
and Lower Pay Zones are also called the Eagleford Shale which is an active new Play in South
Texas.

Meanwhile in Block B, the Kennedy -1H well commenced commercial production on 2 October
2008, the first production from this zone in the
Sugarkane Field. In addition, the Kowalik -1H well is now in production.

Importantly, every well drilled at Sugarloaf to date has encountered hydrocarbons and is
either in production or expected to be put into
production.

On top of the success at the Sugarloaf Prospect, three wells in the Margarita Project
remain in production, providing useful cashflow
for Empyrean. Empyrean has also retained its 38.5% interest in the Eagle Oil Pool Development
Project located in California, USA, which has
very attractive potential oil and gas reserves.

Empyrean's initial project, the Glantal Project in Germany, remains an exciting
opportunity with multi-TCF gas potential. As an
exploration opportunity it currently has a lower priority than the development of production
from our more advanced Texan projects.

During August 2008, Blue Oar Securities Plc were appointed as Nominated Advisors and
Broker, marking a new phase in the Company's
development. At the same time, Non Executive Finance Director Mr John Laycock was appointed,
bringing with him over 30 years of
international accounting experience, which includes both corporate finance and risk
management, to the Board.

Overall Empyrean has moved from a purely exploration business into the production phase.
We continue to focus on the proven potential of
our projects in Texas, USA, and on keeping overhead costs to a minimum to generate maximum
value for shareholders.

Financials

During the six months to 30 September 2008, Project Margarita continued to produce from
three wells generating revenues of 489,037
(USD$874,487). Initial revenue of 86,081 (USD$124,640) was also received from the TCEI JV
Block A-1 well at the Sugarloaf Prospect.

The Company made a loss after tax of 427,000 for the period. Net exploration expenditure
of 1,538,000 for the six months has been
capitalised, which predominately relates to expenditure incurred in relation to the drilling
programmes being carried out at the Sugarloaf
Prospect.
On 25 November 2008, Empyrean announced a placement of 3,333,335 ordinary shares to
institutions, raising 500,000 before expenses.
Proceeds from the raising will contribute towards further development at the Sugarloaf
prospect in Texas, USA. Raising capital via a placing
is always a balance between dilution, pricing, demand and the added value that can be created
for shareholders from the additional funds.
Your Directors are confident that despite the volatility in the Company's share price, the
amount raised was appropriate given all the other
variables considered at that particular point in time.
Outlook

With production from Margarita and now Sugarloaf, the TCEI JV Block A-3 and A-4 wells in
the process of being connected to sales, and
the prospect of being able to either add wells to production or improve rates with fracture
stimulation, Empyrean is entering an exciting
new phase. The Sugarloaf Project in particular is being progressively de-risked, and has
substantial upside potential.
The Company is focussed on replacing the relatively short expected production life and
modest reserves of Margarita with the much longer
life production expected from wells coming on stream from Sugarloaf and incrementally larger
potential reserves.

With the current economic climate proving challenging for small companies, your Directors
are ever mindful of the need to watch costs
closely and have potential fall back positions should economic conditions take longer to
recover than progress on our projects demands. We
have now participated in 8 of the 16 wells that were an addition to our original 6% working
interest in Block B. Of these 8 wells, 5 are
either in production or about to be connected to sales with the balance able to be completed
for production later.

If, and only if, we choose to, Empyrean can revert to the original 6% working interest and
pay only 6% of costs of future Block B wells.
This can be done without forgoing the interest in any wells already paid for, which are
retained. With the scope for in excess of 140 wells
to develop the Block B acreage this is a great fall back position to have. We are not
expecting any new wells to be drilled for the
remainder of this calendar year. We also expect that there may not be a further Block B well
following Weston-1H until March 2009 at the
earliest. During this drilling break we expect a number of already drilled wells to be
connected to sales. All of this is very positive for
the Company and should allow production to kick in before more wells are drilled. Other
potential fall back positions are available to the
Company should these timeframes not be accurate.

We are mindful of shareholders needing to rely upon accurate information for their Company
and urge shareholders to only rely upon
Company endorsed information either via announcements or reliable published research.

With a portfolio of additional projects already identified and with further success at
Sugarloaf, the Company's expansion will continue
to be pursued with vigour, as rapidly as the global economic conditions will permit.

Patrick Cross
Chairman
12 December 2008

OPERATIONAL REPORT

Empyrean continues its participation in four projects, three of which are located onshore
in the USA and one in Germany. Of the three
located in the USA, two of these projects are now producing with the recent discovery at
Sugarloaf now producing from three early appraisal
wells and three producing wells of the Margarita Project continuing to generate revenue for
Empyrean during the reporting period.

During the last six months Empyrean has been involved in a vigorous, full-scale appraisal
and development drilling programme focussed on
the Austin Chalk play, onshore Texas, USA. The wells involved are located in Block A and Block
B which lie approximately 20km south of the
main producing historical Texas Austin Chalk trend.


Sugarloaf Hosston Project (Empyrean Interest: 6 - 18%)

The original farm-in agreement with TCEI was announced by Empyrean on 6 April 2006. This
agreement gave Empyrean the right to a 6%
working interest across Block B.

The Sugaloaf-1 well was drilled and following analysis of logs showing the presence of at
least a 92 feet gross column of gas, Empyrean
entered a second agreement with TCEI for an additional interest in the next 16 wells to follow
Sugarloaf-1 on Block B or the adjacent Block
A.

To date, a total of seven wells have been drilled with one currently drilling as part of
the 16 well deal. All wells have encountered
hydrocarbon shows while drilling and three have already tested positively for gas and
condensate. Four of these eight wells have been spud
since May 2008, being TCEI JV Block A-4, TCEI JV Block A-5, Kowalik-1H and Weston-1H.

The operations in progress are as follows:

BLOCK A

TCEI JV Block A-1 (Empyrean Interest: 7.5%)

The TCEI JV Block A-1 well was brought into production and commenced flowing to sales at
an initial seven day average production rate of
2.6 million cubic feet equivalent gas per day (10:1 conversion on condensate value). The well
was flowing from 900 feet of perforations and
the operator intends to add an additional 1800 feet of perforations to provide some 2700 feet
(approximate) of perforations and also
fracture stimulate the additional interval. These operations have commenced.

TCEI JV Block A-2 (Empyrean Interest: 7.5%)

The TCEI JV Block A-2 well is being used to monitor the fracture stimulation operations of
the A-1 well following which it will be
completed for production itself.


TCEI JV Block A-3 (Empyrean Interest: 7.5%)

The TCEI JV Block A-3 well was spudded on 24 October 2007.

On 14 April 2008 Empyrean was finally able to announce the initial test results of a
significant gas-condensate discovery. Initial flows
through a 12/64 choke were measured at 1.9 million cubic feet gas per day with 460 barrels of
condensate per day. Based on present day
prices for gas and condensate this would be equivalent to 6.5 million cubic feet of gas
equivalent per day.

This open hole test has been conducted without stimulation.

A-3 has been flow tested then "shut in" as part of the normal reservoir and production
engineering procedure. During the "shut in"
period the operator has been finalising the design (based on the TCEI JV Block A-1 well) and
construction of production facilities and
pipeline connection. Condensate will be separated in situ and trucked to the appropriate
markets. As of 4 December 2008 the connection
operations are still in progress.


TCEI JV Block A-4 (Empyrean Interest: 7.5%)

TCEI JV Block A-4 well was designed to test the same "Upper" zone of the Austin Chalk as
those Block A wells in production, being TCEI
JV Block A-1 well and TCEI JV Block A-3 well.

The well was spudded on 4 July 2008 and reached total depth of 12,756ft in the vertical
pilot hole on 26 July 2008. At least 300 ft of
gas shows were encountered during this phase of drilling.

The horizontal phase terminated at 15,084ft (measured depth) on 7 September 2008.
Sufficient pay had been intercepted in the Austin
Chalk reservoir and this was considered by the operator to provide sufficient potential for a
good commercial outcome.

Preparations for production testing commenced at the beginning of October 2008, and on 31
October 2008 it was announced that A-4 had
flowed initial rates as high as 2.5 thousand cubic feet of gas per day and 260 barrels of
condensate per day, equating to approximately 5.1
million cubic feet of gas equivalent per day.

Preparations for sales pipeline connection and production facilities have already
commenced.


TCEI JV Block A-5 (Empyrean Interest: 7.5%)

The well was spudded on 29 September 2008 and reached a total depth of 12,469ft on 27
October 2008.

It is a vertical well which had hydrocarbon shows in all three zones, Upper (Austin
Chalk), as well as the Middle and Lower Pays which
are called the Eagleford Shale by on-trend operators.

The operator is at present assessing the well data before deciding on a testing and
completion procedure. It is envisaged that the
operator will test the Middle and Lower pay zones, (the Eagleford Shale), before testing the
already proven Upper Zone and possibly
combining production from both zones if possible and successful.


BLOCK B


Kennedy -1H (Empyrean Interest: 18%)

The well spudded on 17 September 2007 and after kicking off from the vertical at 11,845ft,
the total depth of 16,750ft (measured depth)
was reached on 12 November 2007 was 820ft short of the original proposed measured depth of
17,570ft.

A fraccing operation was carried out on 14 May 2008. A total of 95,000 lbs of sand and
5,182 barrels of fluid were injected under
pressure into four sets of perforations over an approximate 600ft horizontal interval. Initial
flow results of gas condensate and fracc
fluid recovery were announced on 25 May 2008.

An impending second fraccing operation was announced on 23 June 2008 and carried out on 3
July 2008. An additional three sets of
perforation intervals, each 3ft long, were interspersed between the original 600ft perforated
interval prior to the introduction of
100,000lbs of high strength proppant. The fraccing operation was terminated prematurely due to
the high pumping pressures encountered and
only 50% of the proppant entered the formation.

After cleanup operations, testing of the well resumed on 15 July 2008. The initial,
unstabilised rates of 425 thousand cubic feet of gas
per day and 106 barrels of condensate per day reduced, after intermittent slugging, to 200-300
cubic feet of gas per day and 46-107 barrels
of condensate per day.

Since at least 5,000 barrels of fluid had not been recovered after the fraccing operation,
a coil tubing unit was mobilised on the 18
July 2008 to displace the fluid. Some additional fluid was recovered but the flow rates
remained the same. It has been estimated by the
operator TCEI that the production originated from only 17ft of perforations in the bottom
section of the 600ft horizontal section.

On 31 August 2008 it was announced that Kennedy1H was being shut- in while production
and tie-in facilities were completed for eventual
connection with the nearby transmission line. Production recommenced on the 2 October 2008 at
a rate of 200 thousand cubic feet of gas per
day and 60 barrels condensate per day.

This is the first time production has originated from the "Middle" pay zone, and therefore
augurs well for recoverable reserve
considerations. A decision whether or not to perforate and fracture stimulate the remaining
3,000ft of horizontal section will be made
following the analysis of production performance.


Kowalik-1H (Empyrean Interest: 18%)

Kowalik-1H was spudded on 4 July 2008 and was designed to test the "Upper" pay zone of the
Austin Chalk over a 6,000ft horizontal
interval. It is located 5 km north of Kennedy-1H and is on trend with the Block A producing
wells TCEI JV Block A-1 well and TCEI JV Block
A-3 well.

The vertical pilot hole reached a total depth of 11,970 ft on 11 August 2008. The
horizontal phase was successfully completed and on 22
October 2008 it was announced that the well had reached a final measured depth 16,483ft
(equivalent to approximately 4,600ft of horizontal
section). Although the original plan was to penetrate a 6,000ft horizontal section, it was
considered technically prudent to stop at this
depth. There had been significant gas shows throughout the section, often reading more than
2,000 units with attendant flares on surface.

Testing operations commenced on 3 November 2008. Initial flows measured 937 thousand cubic
feet of gas per day and 321 barrels of
condensate per day. It has been interpreted that most of this production is from
approximately 1800 feet of the horizontal well.


FJ Brophy BSc (Hons)
Technical Director
12th December 2008

The technical information contained in this report 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.


INDEPENDENT REVIEW REPORT TO EMPYREAN ENERGY PLC
For the full report,

http://www.investegate.co.uk/Article.aspx?id=200812121201040444K

cyril

Details on the way for eme sugarloaf requirement to be excellent more wells on board flow rates outstanding.

Not so sure about "outstanding" flow rates, but should more than cover costs?
cyril

yummy, yummy! ... what a stellar performance by EME ..... time to go to Acapulco or Rio on the proceeds!

Another Shadow stock doomed to failure!