Empyrean Energy

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

Thank you cynic, I'm here now.

Great news today...

Empyrean Energy PLC
08 May 2006

Drilling Update

Drilling now completed at Eagle North-1 in California, USA.
Production testing about to commence.

AIM quoted Empyrean Energy PLC today announces the following update on the Eagle North-1 well, San Joaquin Basin, California, USA:

Victoria Petroleum NL as operator for the Eagle North-1 horizontal well advises
that at 1800 hours Central Pacific Time 7 May 2006, the current operation at the
Eagle North-1 horizontal well was preparing to carry out a production test of
177 metres (580 feet) of the lower Mary Bellocchi Gatchell oil sand in the
horizontal well bore over the interval from 4,209 - 4,386 metres (13,810 -
14,390 feet) following the completion of drilling at 4,386 metres (14,390 feet)

The interval being tested will consist of the 72 metres (235 feet) of lower Mary
Bellocchi Gatchell oil sand cased behind the 4 1/2 inch liner from 4,209 - 4,281
metres (13,810 - 14,045 feet) and the 105 metres (345 feet) of open hole lower
Mary Bellochi oil sand from 4,281 - 4,386 metres (14,046 -14,390 feet) which is
being tested as a barefoot completion out of the base of the 4 1/2 inch liner at
4,386 metres (14,045 feet).

The forward plan is to carry out a tubing conveyed perforation of the casing and
then bring the well to flow to surface by unloading the well bore with a coiled
tubing unit and nitrogen.

IMO, and I hope I am right, the fact that EME (and VOG) remained very stable through the turmoil of the last couple of days is very encouraging ...... How much longer we need to wait for a full flow analysis, or whatever the correct term is, I really do not know, but I would hope it is less than a month

Taken from iii...................I thought some of us on this board need a reality check as to why we hold eme shares or options going forward.

There have been some illinformed,unresearched and frankly untrue posts in the last few weeks.

I state below some very basic but TRUE facts taken from the eme prospectus and Vic Pet prospectus on Eagle as a starting point.

Eagle Pool Development.

Firstly many on this board seem to think that all eagle contains is 1000bpd, and that is factored into the current price of 130p.

The facts are these.

Eagle 1 well is simply a first "Appraisel" well,no more no less.This appraisel well will pave the way for the large ongoing development of the entire eagle pool develpoment as a whole.

Iwant to repeat that FACT in case folks have missed it.The well they are flow testing right now is simply an "appraisel well",ie the first of potentially many further wells.

To highlight that let me remind you,the entire project is targeting upto 34 million barrels of oil and 58 billion cubic feet of gas.Vic pet state that based on only oil at $50 a barrel (currently $73 approx and rising), and gas at $7 approx, this gives only a MEAN net present value of circa $313 - $400 million US.

EME have 38.5% of that less costs.

Now moving on from this first "appraisel well at eagle 1,on the presence of oil and gas at eagle1 appraisel well (assuming it flows!),VIC Pet will then aquire further 3d seimic surveys on the entire sight.

from this all "SUBSEQUENT", wells (currently atleast nine further planned) will take on multi lateral production well format.Each subsequent well and i quote from Vic Pet are expected to produce 1000 - 2000 bpd PLUS gas.

Now i remind people of this,becuase i am sick of folks saying, oh well its only 1000bpd ,thats priced in at 130p.Correct,it may well be partly priced in.

But,you can now see how they got a placement at 130p to raise funds specifically for development at glantel AND the ongoing develpoment at the entire Eagle Pool Development.

My point is,this measely first appraisel well is just that,a test base for the much more ongoing substantial project at eagle and the financial benefits that will bring to eme.

Glantel.

now its also important to remember that eagle was initially a bolt on small project.In emes prospectus GLANTEL and the nieghboring project were and still are the MAIN thrust of the business.

I dont need to tell you about the potential TRILLION cubic feet of gas there.20 zones of interest and intact seal.

they also have sugarloaf and are currently exploring additional projects.

so as not to go on,my main thrust is saying as a start (glantel and others aside),Eagle 1 was and is JUST a starting point,a small beginning ,which will lead to numerous other prodcution wells on sight.

finally let me remind you,in 1986, the neighboring well produced 223 bpd from only 39 feet of net pay.

they are currently testing circa 600 feet of net pay, so do the maths.

oil is now well over $70 a barrel.

and people question where the current value is in a company with a small number of shares in issue, tighly held,good institional support a market cap of circa 46 million and trading at 130p the heavily discounted placing price.

Ican assue you,i am delighted to have had the chance to buy these shares at current and lessor levels.

we are only at the very beginning here.

tell me this in 12 months or 18 months time,what value would you place on 10 or more producing wells at eagle???.
what value would you place on only say p90% at glantel ,plus the project next door, plus sugar loaf, plus others to come.

I believe imho 130p will seem like 30p.

dyor, its all there.

I dont pretend to be an expert,but even i can see that mkt cap 46 million circa,is a starting point and very soon the cat will be well and truly out of the bag.

good luck, but i dont think we will be needing it!!!.

wolverine

A post from another board, concerning a Productive gas find at Glantal on a German web page, goes on to say the depth of the gas is simular to that of our Well.
Could this be why they didn't drill to the original planned depth?
Well it should be less than 12 hours before we know the outcome of Eagle.
cyril

Cyril (I assume you know the derivation of your handle) - I don't understand your comment re Glantal ... Please can you elucidate

cynic, Gantal is a gas project just outside Frankfurt which if proved up
(up to 6.2tcf/gas) will see EME rocket. In fact its the asset which most
ips are holding on for. Eagle is at present holding our attention due to its
imminent news of flow rates(if any), but it is Glantal which is the real jewel in the crown.The article from the German web page gives a very strong indication that it is EME's project they refer to? Will try and dig up article and post.
We also have another prospective gas field in South Texas called Sugarloaf,
but that's one is for the future.
cyril

I find it strange they don't appear to have achieved the full length of their horizontal section on Eagle. Can't see any explanation why not anywhere either. Hmmm.

You misunderstood. I know both those projects. I was just puzzled by your post on same. I cannot believe that EME would be permitted to hide sensitive news of this magnitude if it is true. Also, if true, why would they want to?

Here's a rough translation,
A US Consortem has been crowned with success after drilling for gas on the
slopes of Potzbbergs by Theisbergstegen.
The evaluations resulted in Productive Natural Gas at a depth of 1623mtrs.
cyril

cynic,
Can't answer that just passing on info gained from other board.
Probably covered by RNS dated on 21/03/06.
cyril

What does anyone make of the following RNS that came out today? ...... Goodd news, potentially bad news, or no news at all? ......


Empyrean Energy PLC
16 May 2006


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

Drilling Update
Testing operation in Progress at Eagle North-1 in California, USA

AIM quoted Empyrean Energy Plc today announces the following update on the Eagle
North-1 well, San Joaquin Basin, California, USA.

Victoria Petroleum NL as operator for the Eagle North-1 horizontal well advises
that production test operations are continuing.

The test is being carried out over 177 metres of lower Mary Bellocchi Gatchell
oil sand and the interval being tested comprises 72 metres cased behind 4 1/2
inch liner and 105 metres of open hole which is being tested as a barefoot
completion out of the base of the 4 1/2 inch liner at 4386 metres.

Results of the production testing will be made available at the completion of
the operation.

I think it is potentially good news on the way as good oil shows have been shown before.

My only concern is lack of any positive comment; but then if there was, the way would be wide open for disappointment

Cynic

The sun announcement is better. No nitro or coil perforation as they couldn

Cynic

The sun announcement is better. No nitrogen or coil perforation as they couldn`t get hold of one?

So the flow rates will be straight oil flowing to the surface.

No expert but to announce the use of nitrogen and then back track is at best slack.

End of the week will tell.

Regards

Dr Square

I'll concur it is very careless not to have secured a N2 unit if that was in the welltest plan. Unfortunately, the oil business is busy and equipment is often at a premium. Presumably they do have a plan to get the thing flowing - strange no mention of it.

I'd also raise a question as to why they have set 4 1/2" liner halfway through the reservoir thereby drilling the smaller hole and then perforating the liner. This is very unusual to say the least. I'd suspect some technical problem drilling the reservoir section. As ever with small outfits they never tell anything problematic, only the headline good stuff. Hmm.

Cyril, did you see how fluctuant EME this morning? Makes me nervous

CBM,

Its a happening thing.


Caterpillar to power coal methane gas project in China
www.chinaview.cn 2006-05-19 21:37:51


BEIJING, May 19 (Xinhua)-- Caterpillar Inc. (NYSE: CAT) announced Friday that it will work with a Chinese coal mine on a coal methane gas project which is expected to be the largest of its kind in the world.

According to Stu Levenick, Caterpillar group president for China, Caterpillar has been selected to provide 60 methane-gas-powered generator sets to produce 120 megawatts of power at the Sihe Coal Mine in Jincheng City, north China's Shanxi Province.

The Shanxi Jincheng Anthracite Coal Mining Group Co., Ltd. is the project developer for the methane gas power project.

"The residents of Shanxi Province will benefit from this power plant," Levenick acknowledged. "This project is expected to help improve mine safety, reduce greenhouse gas emissions and generate electricity from methane gas."

The entire methane-fired power plant is expected to be fully operational in 2007.

Methane gas is found in coal seams and can be hazardous if not properly managed and ventilated from mines. Historically, the methane has been released into the atmosphere, generating greenhouse gas emissions.

By capturing the methane gas and converting it into electric power, the methane-fired power plant is estimated to alleviate greenhouse gas emissions by 4.5 million tons over a two-decade period, according to Levenick.

China plans to develop coal methane gas into a major new energy resource for this century.

Currently, China's coal methane gas reserves have reached 30 trillion cubic meters, the third largest in the world only after Russia and Canada. Enditem

Editor: Yang Lei

CBM = cow bottom methane! ..... If all cows were culled, there would be significantly less methane or greenhouse gas released into the antmosphere ..... Where are the Friends of the Earth when you need them?