Empyrean Energy

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

Hmm, stuck in the hole. ;-0


RNS Number : 7575M
Empyrean Energy PLC
04 February 2009



4 February 2009

Empyrean Energy PLC

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

Sugarloaf Project, ('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 the Sugarloaf Project which is part of the Sugarkane Gas and Condensate Field:

Weston-1H

Empyrean has been advised by the Operator Texas Crude Energy Inc (TCEI) that on 2 February 2009 the well remains at a measured depth of 15,685 ft.

A short length of the drilling assembly became stuck between the casing shoe and top of the Austin Chalk and standard fishing operations are presently underway. Once resolved the forward plan is to run and cement a production liner at this depth which will secure approximately 3,000 ft of horizontal hole within the Austin Chalk.

The well continues to exhibit indications of gas charge, with gas readings of 2,000 units and flares of up to 60 ft observed when circulating out the well following shut in periods.

The well is targeting the upper chalk interval that has produced gas and condensate in Block A and also the Kowalik-1H well.

Empyrean has a 6% interest in the Weston-1H well.

Further updates will be provided following developments.

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.

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

Weston-1H

"Empyrean has been advised by the Operator, Texas Crude Energy Inc ('TCEI'), that a clean out assembly has washed past the drilling assembly that became stuck ('fish') and continued to the well TD at 15,685ft. The production liner is presently being deployed and preparations will then be made to cement the liner in place.

The well will have approximately 3,000 ft of horizontal hole within the Austin Chalk and is likely to be fracture stimulated and tested before being tied into production.

During the fishing operations the well continued to exhibit indications of gas charge, with gas readings of over 2,000 units and flares of up to 40 ft having been observed when circulating out the well following shut in periods.

The well is targeting the upper chalk interval that has produced gas and condensate in Block A and also the Kowalik-1H well.

Empyrean has a 6% interest in the Weston-1H well.

Further updates will be provided following developments."

EMPYREAN ENERGY IS PRETTY DEAD NOW...6.75P now.

this is proving to be just the great company it always promised

Weston-1H
Empyrean has been advised by the Operator, Texas Crude Energy Inc ('TCEI'), that the production liner has now been successfully run and cemented to a revised measured depth of 15,797 ft. This secures over 3,000 ft of gas bearing matrix Austin Chalk behind pipe for future stimulation.

The Patterson #130 drilling rig was contractually released at 09:00hrs on 15/02/09 (US CST) and the rig has now been demobilised.

The completion of drilling operations at Weston-1H provides the Sugarloaf Joint Venture with three horizontal wells and the following table summarises their status.

Well
Horizontal Section (ft)
Formation
Completion
Fracture Stimulated, Tied in and producing

Kennedy-1H
3,800
Eagleford Shale, Cemented Liner, Attempted bottom 600 ft.

Kowalik-1H
4,600
Austin Chalk, Uncemented Slotted Liner, not fracture stimulated.

Weston-1H
3,000
Austin Chalk, Cemented Liner, Not fracture stimultated.

All three wells encountered gas charged matrix rock along their length and Kowalik-1H is believed to have encountered natural fractures over the last 1,500 ft of the well. The two wells with cemented liners will need to be fracture stimulated to achieve production. The Joint Venture has learned from the earlier fracture stimulation operations at Kennedy-1H and, based on results from recent fractured wells in the adjacent and on trend acreage, believes that improved results can be achieved when this work is carried out. The production results at Kowalik-1H are not consistent with the indications observed whilst drilling and the Joint Venture is also optimistic that this rate can be improved."

Read the release earlier. They make some fairly hefty assumptions IMO. Wouldn't do anything until their assumptions are proved!!

market excitement tells it all

Yes market speaks,
up 22% better performer than EO.

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


Block A-3 and A-4 wells placed on production to sales

Combined flow rates from both wells averaged 5.8 million cubic feet of gas per day and 680 barrels of condensate per day for the seven days up to 21st February

cyril

Probably won't last long, cyril. Sorry.

bought in today with a massive spread bet...market not reacted yet

Marked up nitially by 22% and then fell back to close up 8.5%. I think that just might say it all, maestro. ;-))

Al market movements at present mean little, take IPL just awarded 38m cash
settlement with truly great assets, M/Cap at $20m.
Not really worried got out a long time ago as i felt it was not the type of stock to hold at present.
cyril
ps read the 4th feb's news for CHL

............. and back to where it was.

Al ; i could off the top of my head name several others in the same boat, as you well know, its the this market thats the problem. To be fair to EME this latest result will bring in over 1m this year and ensure the future certainly into next year.
cyril

There are many companies in this market in the same boat, cyril. EME was simply another that was never going to make it anyway IMO. 1m a year ain't going to cut it in drilling terms.

'Tis life.

sold out and bought ridge mining...no brainer

maestro ... i assume it was on the same basis that you bought EME too!

nope...ridge getting taken over...should be 70p but scumbag crooks in the city keeping it down for the time being

If you don't mind me saying so, I can see why you are living in a van ...

He is not in a van anymore, he has a council flat