Empyrean Energy

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

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?

Empyrean Energy PLC
22 May 2006

Glantal Gas Project, Germany

Completion rig secured for testing operations at the Glantal-1 well.
Testing operations expected to commence during June.
4 initial zones prioritised for testing.

AIM quoted Empyrean Energy PLC today announces that a completion rig has been secured to test four initial zones for the presence of gas at the Glantal-1
well, the first well drilled by Empyrean and its partners in the Glantal Gas Project.

Following a comprehensive independent and internal review/analysis of the log
data (including FMI data) four initial zones have been chosen as priorities for the testing operations. Two of the zones have multiple intervals in close proximity within the zone that can be tested together, resulting in a total of eight initial intervals that will be tested over the four zones. Each zone will be tested separately for hydrocarbon content.

The operator of the Glantal Gas Project, Pannonian International Ltd ('Pannonian'), a wholly owned subsidiary of U.S.-based Galaxy Energy Corporation (Amex: GAX) has advised that a German contractor, Koller Workover and Drilling GmbH, has been chosen to provide the completion rig and associated services for the testing operations at the Glantal-1 well. The operator advises that the contract with Koller is in the final stages of review and is expected to be
executed shortly.

Commenting today Tom Kelly, Executive Director, of Empyrean said: 'We are
pleased that a completion rig has been secured for the important and exciting
testing of our first well at the Glantal Gas Project. Pannonian expects that the
testing operations will commence in June 2006 and we will provide a further
update as firm dates become known for the mobilisation of the completion rig to
the well site.'

Cynic, it would be a good start if cows were fitted with pilot lights, enabling them to flare (like oil rigs in the North Sea!) when they flatulate. CO2 is less greenhouse-effective than methane. Problem solved!

And it wouldn't half frighten anyone stumbling home across the fields after last orders, to suddenly be greeted with flamethrowers from all sides!!

furthermore, CO2 is non-flammable so no good for flatulence-flares

Mixed up and jumbled Vic-Pet news out, they now want to delay everything while they find a coiled tubing unit (to effect this they are changing from drilling rig to completion rig which allows enough delay time to get hold of the unit), but on the coiled tubing unit they said they were not going to use this last RNS, but now will use it on todays RNS, which points that although signs are encouraging, it needs more additional work now. I would guess the flows have not been on the "top side" of expecation, and now they are trying their best to minimise the damage from low production flow rates or shows so far, which would explain why the price is now easing backwards and will continue to do so with these latest delays and changes to the plan.

The reason for changing from present rig to completion rig is to save money and also its better "technically speaking" so why were the playing around with the other rig and "we are not using a coiled tubing unit", to now say it saves money with a completion rig and its better and "we will wait for a coiled tubing unit".

The reference to saving money I take it also as a sign a lot more work is required, therefore for this prolonged period of time to production test (months now ?) they need to use a cheaper rig.

The final point I do not like is the line to the effect "we will update the market with results when the process is complete" meaning nothing good to say so far, and they will hide the figures until such time as they have to release if bad, but hope they are good with all the extra work.

Perhaps I am in a bad mood today............but not very impressed with that.

Here is the link :

http://www.asx.com.au/asxpdf/20060523/pdf/3wvsr3qqw8ws7.pdf

Papal ..... I was under the impression that the drilling was a fixed price contract with a 3rd party ..... I am quite possibly or even probably wrong ..... btw, price drop has more to do with panic selling etc that actual news .... Look at VOG; down 30 yesterday for 120% no reason

Empyrean Energy PLC
23 May 2006


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


Operations 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 in the Eagle Oil Pool Development Project in the San Joaquin Basin advises that production testing operations are continuing at the Eagle North-1 horizontal well with results providing sufficient encouragement for further testing.


In order to continue the production testing operations in a much more cost
effective and technically efficient manner, a completion rig is in the process
of being secured. Accordingly the large drilling rig is currently rigging down
to allow the completion rig to move onto site. The completion rig is anticipated
to move onto location this coming week. Following the arrival of the completion
rig on location a coiled tubing unit will then be secured to continue the
production testing operation.

While flows may not be at the top end of those speculated (usually far too high anyway), it looks unlikely that the project will prove uneconomic ...... Anyone disagree with that synopsis?

Would never disagree with cynic.
Especially as I very much agree

Eagle North-1 looks a bit of a bit of a disorganised mess to me. I can find nothing about any flow at all!

This does, of course tie in with the need for a CT unit and N2 in order to lift it. The implication is that the reservoir pressure is insufficient to bring itself on. Has anyone heard if they actually got oil to surface when they opened it up?

Admittedly there is no mention of N2 requirement, but I see no reason why they would need a CT unit for anything else unless the initial test is poor and they need to stimulate in another way.

The RNS above about "cost effective" and "technically efficient" is crap IMO. There's an awful lot more to it and they are not saying.

Al
;-)

From Yahoo GAX bb-

Neues Bergland Gas Permit - Koller
by: tedday69 (34/M/Frankfurt am Main) 05/29/06 03:14 am
Msg: 909 of 910

I understand that Cecil Gritz at Galaxy has concluded the Contract with Koller Workover & Drilling Gmbh at Nienhagen for the testing & completion work at the Glantal - 1 well at Theisbergstegen.
Whether this will prompt a formal statement from GAX this week on the general status of the Glantal program remains to be seen. Certainly there is a lot of excitement in the area at the extent of the gas discovery

cynic post 213 your wrong no fixed price drilling.
EME picked up 50% till $2.3 approx spent then reverts to 38.5% cost of future work.

My best Guess is that Vic have stuffed up and are haveing to re-drill the end section with the Coiled tube unit.

As for economics lets wait for the oil to show but they sure as hell are makeing us sweat for what a month ago looked like a walk in the park.

Regards

Thanks for putting me right Doc ...... At least we know, or I think we do, that Eagle1 is intrinsically a viable site, and sp seems to have taken most of the uncertainties out of the equation .... but the waiting sure is tiresome

I think the whoosh will be with RIFT today and their gas find. Just read the LKO update on current projects today (Link : http://www.asx.com.au/asxpdf/20060601/pdf/3wzvxdngk8jmx.pdf )

Ummmm not very encouraging when they say costs have blown out, but keep that horrible "UP TO" 1000 bopd, which means nothing, as 1 bopd and 10 bopd are all part of the vague "up to 1000bopd".............. and they are still only "hopeful" of any flow at all.

Never mind, more wild swings and rough times to come I think until some real news get released.

Empyrean Energy PLC
01 June 2006

Final Results
For the period 10 March 2005 to 31 March 2006

Portfolio expansion with the Company acquiring two additional energy exploration projects within politically stable regions;

Net cash position over 3.2 million following successful placing with institutional investors in March 2006;

Further testing of Glantal Gas Project (Germany), following initial drilling and gas shows;

Encouraging oil shows have instigated flow testing of Eagle Oil Pool Development Project (California);

Drilling planned at Sugarloaf Hosston Prospect (Texas) in Q3 2006.

Chairman's Statement

It is with pleasure that I am able to report on a very successful first year as a listed company.

Empyrean Energy Plc was admitted to AIM on 27 July 2005 having completed a successful IPO process based on our first project - the Glantal Gas Project in Germany.

Since listing on AIM we have acquired interests in two further projects that fulfil the overall strategy of investing in energy projects within politically stable regions, providing ready access to energy hungry markets. We have also undertaken an additional capital raising to assist the Company with the exploration and development of all three projects.

Our second project, the Eagle Oil Pool Development Project in California, is now at the production testing stage and we are eagerly awaiting the outcome of this testing to determine the production rates.

In keeping with our investment strategy, the Company recently acquired an interest in the Sugarloaf Hosston Prospect (Cretaceous) in Texas. This prospect is a 20,000 acre 4-way closure with multi trillion cubic feet ('TCF') gas potential in one of the most prolific hydrocarbon provinces in the world. An independent expert has estimated that the Sugarloaf Hosston Prospect could contain a P50 (probability 50% unrisked) reserve of 0.97 TCF gas, with the P10 assessment estimated at 2.3 TCF gas.

In conclusion, I am pleased to report that in its first year of operation, the Company has successfully acquired a portfolio of three strong projects, all in regions free from political risk. Drilling has given strong encouragement with the first two projects gaining enough support from electric log data to necessitate further testing with the third project set to commence drilling in the second half of 2006. The three projects provide the Company with a good balance of risk versus reward, and the Board will continue to look actively for additional attractive opportunities which complement this portfolio and continue to deliver strong capital growth to shareholders.

Patrick Cross
Chairman
26 May 2006

Operations Report

Empyrean Energy Plc ('Empyrean') has been actively involved in two operations since it was admitted to AIM on the 27th July 2005. The first operation at the Glantal Gas Project located onshore southwest Germany has involved the drilling and appraisal of the Glantal-1 well. The second operation involves the drilling of Eagle North-1 well which is part of the Eagle Oil Pool Development Project located onshore in the prolific oil and gas producing San Joaquin Basin, California. Both operations are still in progress at the time of writing.

Glantal Gas Project
This is the first project entered into by Empyrean. It involves the drilling of the exploration well Glantal-1 in the Neues Bergland permit near Frankfurt in Germany and has the potential of discovering important accumulations of gas measuring in the trillions of c.ft. The operator is Pannonian International Ltd ('Pannonian') a wholly-owned subsidiary of the US-based Galaxy Energy Corporation. Empyrean has the opportunity to earn a 52% working interest.

The well was spudded on the 29th November 2005. The vertical well was slightly deviated after reaching 650m, as planned, and the angle gradually increased to 30 degrees with a northeast bearing. Electric logs were run prior to the setting of the 7 inch casing at 1022.5 metres in the 'Dilsburger' seal.

After some delays due to weather and technical set backs, the Gottelborn Formation, the first of the proposed reservoirs, was intercepted at 1054 metres measured depth (MD).

A total depth of 1687 metres (MD) was reached on the 25th January 2006, 340 metres short of the proposed total depth of 2025 metres. This premature termination was due to the presence of a granitic type igneous rock intercepted at 1632 metres (MD) underlying the sedimentary section.

During drilling there were increases from time to time in gas readings. There was also a substantial fracture zone identified at 1450 metres when the drill string fell 20cm. The electric logs indicated the presence of at least 20 intervals of porosity and permeability which could be potential gas filled reservoirs.

It was unanimously decided to suspend the well to enable testing at a later date. A 5 inch liner was emplaced and a detailed analysis embarked upon of the various logs which included sophisticated fracture detection logs. These studies have resulted in the identification of four zones which will be tested separately for hydrocarbon content.

At present preparations are being made to carry out those tests with a local workover rig expected by the operator to arrive on site in June 2006.

Should these tests prove successful for hydrocarbon content the initial productivity of the reservoirs will be assessed and on the basis of such assessment the operational committee will consider undertaking artificial fracturing enhancement.

Eagle Oil Pool Development Project
The Eagle-North-1 well is an appraisal of an oil discovery made in the Mary Bellocchi-1 well in 1986. The present operator, Victoria Petroleum N.L., was a participant in the oil and gas discovery at the time and has farmed out part of its interest to Empyrean. The farmin agreement allows Empyrean to earn a 38.5% in the Eagle Oil Pool Development Project by contributing 55% to the total cost of Eagle North-1 which involves testing both a vertical and horizontal section of the well.

The well was spudded on the 11th January 2006 and, after several sidetrack operations, reached the TD of 4,219m on the 16th February 2006. Wireline evaluation of the target Gatchell sands indicated oil saturation over a 21 metre interval from 4,143 metres to 4,164 metres with interpreted net oil pay of 13.4 metres. The wireline log character of the pay was similar to that seen in the Gatchel sands that produced oil at Mary Bellochi-1 366 metres to the southeast. Despite an increase in the gas and higher homologues while drilling the pay zone, no fluorescence or traces of oil were recorded. This was to be expected as the (oil based) mud was considerably overbalanced and the PDC drill bit used would have pulverised the sands. The 7 inch production casing was set at 4,217 metres and was perforated over intervals 4,142.8 to 4,152.3 and 4,158.3 to
4,163.0 metres. Testing gave only a small amount of oil (400cc of 29 degrees API) and no water. Inadequate penetration and reservoir damage during drilling were interpreted by the operator to have combined to produce this result, for the logs give a different perspective, and the decision was made to continue drilling the horizontal phase through the pay zone as planned.

Technical breakdowns and delays have severely impeded this phase of the operation. Good oil shows however have been encountered through the Gatchell sands. Poorly consolidated sandstones have prevented both the drilling of any further than 4,386 metres (measured depth) or setting the 2 3/8 inch slotted
liner as originally planned. Instead, an adjusted testing programme is at
present being prepared whereby 72 metres of Lower Bellocchi Gatchell oil sand
cased behind the 4 1/2 inch liner and 105 metres of open hole (barefoot
completion) out of the base of the 4 1/2 inch liner set at 4,386 metres will be
production tested. This makes a total of 177 metres of pay to be tested in the
horizontal part of the well bore.

Sugarloaf Hosston Deal
On the 6th April 2006, Empyrean announced that it had entered into a farmin
agreement with operators, Texas Crude Energy Inc., to participate in the
Sugarloaf Hosston Project located in South Texas, USA.

The prospect covers an area of four way closure of approximately 20,000 acres
which could contain several trillion c.ft of gas. Empyrean is earning a 7.5%
interest until payout where the interest reverts to a 6% working interest after
payout (estimated cost $US 750,000).

The potential main objective Cretaceous Hosston sands occur at approximately
17,000 feet although secondary targets could occur at shallower depths based on
the results of wells in the vicinity. The well is designed to reach a TD of
21,000 feet.

FJ Brophy BSc (Hons)
Technical Director
26 May 2006

Income Statementb for the period ended 31 March 2006

Note 2006

'000

Administrative expenses (760)
---------

Operating loss 2 (760)


Interest receivable 3 71

---------

Loss on ordinary activities before taxation (689)


Taxation on loss on ordinary activities 4 -

---------

Loss for the financial year 13 (689)
=========



Loss per share expressed in pence per share

- Basic 7 (2.5)p



A separate Statement of Recognised Income and Expense is not required.


Balance Sheet
as at 31 March 2006
Note 2006
'000

Assets

Non-current assets

Intangible assets 8 3,860

Plant and equipment 9 7
---------

3,867
---------
Current assets

Other receivables 10 239
Cash at bank 3,210
---------

3,449
---------

Liabilities
Current liabilities
Other payables 11 (123)
---------

(123)
---------

Net current assets 3,326
---------

Net assets 7,193
=========

Shareholders' equity
Ordinary shares 12 70
Share premium 13 7,665
Other reserves 13 147
Retained loss 13 (689)
---------

Total equity 7,193
=========



Cash Flow Statement

for the period ended 31 March 2006
Note 2006
'000

Net cash outflow from operating activities 15 (769)

Return on Investments
Interest received 71
--------

Net cash inflow from returns on investments 71

Capital expenditure
Purchase of tangible fixed assets (12)
Purchase of intangible fixed assets (3,854)
--------

Net cash inflow for capital expenditure (3,866)

Financing
Issue of ordinary share capital 8,146
Expenses relating to share issues (372)
--------

Net cash inflow from financing 7,774
--------

Increase in net cash 16 3,210
========



Notes to the Financial Statements

for the period ended 31 March 2006


1. Turnover and Segmental Analysis

The Company had no turnover during the period.

All the administration costs were incurred by the Company in the United Kingdom

Capitalised exploration, evaluation and development expenditure can be analysed
by the following geographical segments:
2006
'000

Continental Europe 2,027
North America 1,833
---------

3,860
=========

2. Operating Loss

The operating loss is stated after charging:
2006
'000

Auditors' remuneration - audit services 5
- other services 3
Depreciation (note 9) 3
Directors' emoluments (note 6) 88
=========

Auditors' remuneration for non-audit services provided during the period
amounting to 3,000 relates to the provision of general accounting services. A
further charge of 15,000 relates to the provision of an accountant's report for
the purpose of the Company's AIM Admission Document and was charged to the share
premium account as part of share issue expenses.


3. Interest Receivable
2006
'000

Bank interest receivable 71
=========

4. Taxation
2006
'000
Current year taxation
UK corporation tax at 30% on profits for the period -
---------

Factors affecting the tax charge for the period
Loss on ordinary activities before tax (689)
---------

Loss on ordinary activities at the UK standard rate of 30% (207)

Effect of tax benefit of loss carried forward 207
---------

Current period taxation -
=========

5. Staff Costs (including Directors)

The Company had no employees during the year.
2006
'000

Equity-settled share-based payments 127
=========

The Company's equity-settled share based payments comprise incentive options
granted to the Company's Directors. The amount and details of share options
subject to equity-settled share based payments are set out in note 12.

The fair value of these options has been fully expensed during the period, based
on a Black-Scholes model, assuming a risk free rate of 4.7% and expected
volatility of 60%. The value per option ranges from 8 pence to 9 pence. There
are no performance measures attached to the options.

6. Directors' Emoluments
2006
'000
Income statement Intangible assets Total

Non-Executive Directors:
Patrick Cross 24 - 24
Malcolm James 16 - 16

Executive Directors:
Frank Brophy (1) 16 8 24
Christopher Lambert (2) 16 24 40
Thomas Kelly (3) 16 8 24
---------- ---------- ---------

Total 88 40 128
========== ========== =========

1) Services provided by F J Brophy Pty Ltd
2) Services provided by Walkerton Plc
3) Services provided by Apnea Holdings Pty Ltd

No pension benefits are provided for any Director.

The Executive Directors are remunerated for consulting services provided to the
Company in relation to its exploration operations as disclosed above. These
payments are capitalised to licences and deferred exploration costs (note 8).

Directors' Share Options

On 2 November 2005, Patrick Cross was allocated options over 250,000 shares at
an exercise price of 35 pence per share with an expiry date of 31 December 2008,
and options over 250,000 shares at an exercise price of 40 pence per share with
an expiry date of 31 December 2008.

On 2 November 2005, Frank Brophy was allocated options over 1,000,000 shares at
an exercise price of 35 pence per share with an expiry date of 31 December 2008.

7. Loss Per Share

The basic loss per share is derived by dividing the loss for the period
attributable to ordinary shareholders by the weighted average number of shares
in issue.

Loss for the period (689,000)
Weighted average number of Ordinary shares of 0.002 in issue 27,310,455
Loss per share - basic (2.5) pence

Weighted average number of Ordinary shares of 0.002 in issue
inclusive of outstanding options 27,917,129

As the inclusion of the potential ordinary shares would result in a decrease in
the loss per share they are considered to be antidilutive and, as such, a
diluted loss per share is not included.

8. Intangible Assets

Licences and deferred exploration costs
'000
Cost
Additions 3,860
---------
At 31 March 2006 3,860
---------

Amortisation -
---------
Net Book Value
At 31 March 2006 3,860
=========

At 31 March 2006 the Directors undertook an impairment review of the licences
and deferred exploration costs, as a result of which, no provisions were deemed
to be required.

9. Plant and Equipment
Office
Equipment
'000
Cost
Additions 10
---------
At 31 March 2006 10
---------

Depreciation
Charge for the period 3
---------
At 31 March 2006 3
---------

Net Book Value
At 31 March 2006 7
=========

10. Other Receivables
2006
'000

Other receivables 239
---------

239
=========

11. Other Payables
2006
'000

Accruals 123
---------

123
=========

12. Called Up Share Capital

The authorised share capital of the Company and the called up and fully paid
amounts at 31 March 2006 were as follows:-
2006
Authorised
1,000,000,000 ordinary shares of 0.2p each 2,000,000
=========

Issued and fully paid
35,038,671 ordinary shares of 0.2p each 70,077
=========



The Company was incorporated on 10 March 2005 with an authorised share capital
of 2,000,000 divided into 200,000,000 ordinary shares of 1p each, of which 2
shares were issued fully paid to the subscribers to the Memorandum of
Association of the Company.

On 16 March 2005 the authorised share capital of the Company was subdivided into
1,000,000,000 ordinary shares of 0.2p each.

On 23 March 2005 a further 14,999,990 ordinary shares of 0.2p were allotted at
par value, fully paid.

On 4 April 2005 a further 8,500,000 ordinary shares of 0.2p were issued and
allotted at a price of 20p per share.

On 27 July 2005 on admission to AIM, 7,144,282 new ordinary shares of 0.2p were
placed at a price of 35p per share.

On 24 February 2006 a further 778,568 shares were allotted on conversion of
warrants held over ordinary shares of 0.2p at a price of 35p per share.

On 28 February 2006 a further 2,539,350 ordinary shares of 0.2p were placed at a
price of 1.30 per share.

On 31 March 2006 a further 157,143 shares were allotted on conversion of
warrants held over ordinary shares of 0.2p at a price of 35p per share.

On 31 March 2006 a further 686,828 shares were allotted on exercise of options
over ordinary shares of 0.2p at a price of 35p per share.

On 31 March 2006 a further 232,500 shares were allotted on exercise of options
over ordinary shares of 0.2p at a price of 20p per share.

Share Options and Warrants

The following equity instruments have been issued by the Company and have not
been exercised at 31 March 2006:
Number of ordinary shares Exercise price Expires

Incentive 1,250,000 35 pence 31 December 2008
options
Incentive 250,000 40 pence 31 December 2008
options
IPO Warrants 1,445,714 35 pence 27 July 2007

13. Reserves

The movements on reserves during the period
were as follows:
Share premium Other Reserves Retained Loss
'000 '000 '000

Premium on shares issued
during the period 8,076 - -
Share issue expenses (411) - -
Equity-settled share-based
payments - 127 -
Equity-settled share issue
expenses - 20 -
Retained loss for the period - - (689)
---------- --------- ---------

As at 31 March 2006 7,665 147 (689)
========== ========= =========

14. Movement on Equity Shareholders' Funds
2006
'000

Loss for the period (689)
Proceeds from share issue 8,146
Share issue expenses (411)
Equity-settled share-based payments 147
---------

Closing equity shareholders' funds 7,193
=========

15. Reconciliation of Operating Loss to Operating Cash Flows
2006
'000

Operating loss (760)
Increase in debtors (243)
Increase in accrued liabilities 104
Other non-cash charges 127
Depreciation 3
---------

Net cash outflow from operating activities (769)
=========

16. Analysis and Reconciliation of Net Funds

As at 10 March 2005 Cash flow for the period As at 31 March 2006
'000 '000 '000

Cash in
hand - 3,210 3,210
and at --------- ----------- ----------
bank


17. Commitments

As at 31 March 2006, the Company had no material capital commitments.

18. Related Party Transactions

The Executive Directors are remunerated for consulting services provided to the
Company in relation to its exploration operations as disclosed in note 6. These
payments are capitalised to licences and deferred exploration costs

There were no other related party transactions during the period.

19. Post Balance Date Events

Acquisition of Sugarloaf Hosston
On 6 April 2006 the Company entered into a farm-in agreement with local Houston
based operator/explorer Texas Crude Energy Inc to participate in the Sugarloaf
Hosston Prospect located in South Texas, USA. Full details of the participation
are contained in the Operations Report.

Has anyone actually read the above w.r.t. Eagle Oil Pool?

It's a mess IMO.

Anyone got a reply?