Empyrean Energy

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

LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Empyrean results


Not much cheer here, despite survival. Much seems to have hinged on the reduction of interest in the recent Weston well, which should be worrying. Several producers have stopped producing as well. Hmmm.

RNS - 10.06.09
Highlights
Placing to raise 816,000 at 6p for new project.

Directors participate in the capital raising.

Participation Agreement signed for 10% of the Riverbend Project - an exciting new gas play.

Riverbend Project has already confirmed high pressure gas reservoir with estimated 800 billion cubic feet equivalent gas potential.

First well drilled encountered multiple gas flares and higher pressures and gas influx than those seen in prolific Austin Chalk wells drilled by other operators directly north of the Riverbend Project.

Placing
Empyrean Energy Plc is pleased to announce it has raised 816,000 before expenses, through a placing of 13,600,000 new ordinary shares of 0.2p each in the Company ('Ordinary Shares') (together the 'Placing Shares') at a price of 6p per Placing Share (the 'Placing'). Empyrean Directors, Tom Kelly and Frank Brophy have taken up 2,000,000 and 166,666 shares respectively in the Placing and following this will own 8,500,000 and 1,333,332 shares respectively in the Company.

Proceeds from the raising will be used for the acquisition of a 10% interest in the Riverbend Project in Texas (further details below).

Following the Placing, Empyrean will have approximately 1,800,000 cash at bank (net of expenses) prior to its participation in the Riverbend Project below.

Riverbend Project
Empyrean is also delighted to advise that it has entered into a Participation Agreement with Krescent Energy Partners II, LP of Houston Texas ('Krescent') to acquire a 10% working interest in Krescent's Riverbend Project located in Tyler and Jasper Counties, Texas ('Project Area'). An affiliate company, Krescent Energy Company LLC is the designated operator.

The Project Area is located south of the prolific Brookeland Field (Austin Chalk) and southeast of the prolific Double 'A' Wells (Woodbine) field. The Project Area currently comprises a total of approximately 40,000 acres under lease or exclusive option and an area of mutual interest totaling 50,000 acres. The main targets for the Project Area are the Austin Chalk and shallower Saratoga Chalk plays. Additional upside exists in the Wilcox and Yegua sand formations where Krescent has identified three separate prospects. The project comes with access to 60 square miles of Krescent's proprietary 3-D seismic coverage in the Project Area.

Krescent commenced drilling operations for the Austin Chalk zones in the Project Area in July 2008. Upon penetrating the Austin Chalk 'B' zone and while attempting to build angle to get the wellbore to horizontal within the targeted zone, the Quinn 3-H well encountered higher than anticipated pressures with commensurately significant gas influx to the wellbore. Krescent was able to successfully steer the well to horizontal within the targeted Austin Chalk 'B' zone, but the pressures, gas influx and fractures exceeded those seen by other operators drilling similar wells to the north of the Project Area.

Ultimately, after achieving ~1,000-ft of total horizontal section through the main target Austin Chalk 'B' zone, a blowout occurred and the entire ~1,000-ft horizontal section was lost. Because of the higher than expected pressures encountered while drilling, and due to limitations presented by the drilling equipment then on location, Krescent and its partners, elected to stop drilling and temporarily abandoned the well in order to move a rig on with a greater pump capacity and re-drill the lost horizontal section. Krescent and it partners also saw an opportunity to take advantage of falling rig and service rates in the industry. The new rig, which is capable of operating in the higher gas pressure environment, is expected to become available in approximately 60-90 days, and a further announcement will be made closer to arrival of the rig. The well has a sales pipeline already connected and upon successful completion the well will be flow tested direct to sales

Empyrean will earn its 10% interest by reimbursing Krescent for 10% of the land costs (EME share = US$1,049,600), plus 10% of original cost estimate to drill the Quinn 3-H (EME share = US$1,000,000) and then paying 10% of the cost to re-enter the Quinn 3-H well and drill and complete the horizontal section (EME share estimated at US$300,000). Empyrean will then pay 13.33% of costs to earn a 10% interest on the second, third and optional fourth well before paying 10% of costs thereafter on those wells and any future wells drilled."

Business Financial Newswire
"Empyrean Energy Plc has raised 724,000 before expenses through an institutional placing of 12,066,667 new shares at 6p apiece.

The placing comprised 700,000 raised from institutional investors and a further 24,000 from an existing overseas institutional shareholder.

Proceeds from the raising will be used for working capital and for the further development of the Riverbend Project in Texas. "

From t1ps.com - EK
"I bought 200,000 Empyrean Energy (EME) since I am told it is going up sharpish pursuant to the financing announced on Monday. I paid 6.5p but apparently the target is north of 20p"
"New Position: Empyrean Energy (EME) - Long"

Riverbend Project, onshore Texas, USA.
"Drilling contract secured for re-entry at Quinn 3H well.
Rig has commenced mobilising to the drill location over the past weekend.
Drilling to commence shortly after rig up is complete.
Empyrean Energy Plc is pleased to announce that it has been advised by Krescent Energy Company LLC ('Krescent'), the operator of the Riverbend Project in Texas, that a drilling contract is now in place for the re-entry and drilling of the Quinn 3H well.

Krescent also advises that over the past weekend they have commenced mobilising the rig to the drill site. It is anticipated that drilling will commence shortly after the rigging up operations are complete.

The Quinn 3H well is initially targeting the Austin Chalk 'B' zone where Krescent has already encountered high pressure gas and significant gas influx during the first drilling attempt.

The newly contracted rig has higher pump capacity and pressure rating that is designed to drill in the high gas pressure environment and allow the partners to complete a lateral of desired length within the target zone prior to moving forward with completion operations.

A further announcement will be made when drilling commences."

Up another 10% today to 13p. Finally in to profit!!!

yes, this is starting to look promising again. Does anyone know how long each drill takes to reach TD?

How high do you think it will go

Just on the hype, maybe 20p. EME have a nasty habit of disappointing, so don't get too hopeful!

Up 31% today so far.
Where's Big Al? He normally keeps his eye on this one.

gosh .... relatively speaking this one has at last taken off, but i wonder of there is any true foundation to it ..... so many stocks, and oilies inparticular, have had a bonanza run in the last few weeks, and assuredly there will be tears before long

CYNIC ????? Why put a dampener on something that is going well for a change.
Are you annoyed that you didnt buy in at 3p?
I will be holding till it gets to at least 40p,which is the figuire being passed about on other internet threads.
So if you cant say anything useful ,please dont say anything at all.

not remotely annoyed ..... have done scarily well over the last few months, but i don't what it is about you guys who seem to permanently wear rose coloured specs when the market is good - i am an optimist by nature, but some of you guys get so blinded by greed that you fail to perceive that the markets must surely have a sharp sell-off soon, followed by consolidation ...... a company that produces some stunning news will still see its sp continue north, but for the majority, it will be south, and for tiddlers, very heavily so ..... if you don't bank at least partial profits en route, then you fully deserve to get badly singed

and if you don't think that is saying something useful, then you are very stupid indeed

sold out at 16p...into VOG

A bit too soon Maestro. Now 17.5p

better too soon than too late!

Harry; AL appears when their's a chance to knock it.
cyril

Possibly, but at least he understands the technical stuff better than I do. (Which probably isn't difficult!)

topped up on VOG at 6.2p