Empyrean Energy

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

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

Sugarloaf Hosston Prospect, Texas USA
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AIM quoted Empyrean Energy PLC today announces that at 6am Texas time on 21
November 2006, the Sugarloaf-1 exploration well located in the onshore Gulf
Coast Basin was drilling ahead in 6-1/2 inch hole at 20,105 feet (6130 metres).

Since the last report released on 17 November 2006, the well has continued to
drill in the primary target of the Sugarloaf-1 well.

Drilling is continuing towards proposed total depth of 21,000 feet (6,400
metres), expected to be reached in late November assuming trouble-free drilling.

Nearly there.

Everyone seems to be panicing about the fact that eme's news releases are rather predictable, however let them get to the bottom, run the line logs and quantify the three finds that they have already had on the way down. Due to how few shares there are in eme its going to fly one way or the other. I believe its going to go up. Someone once said the stock market was a means for the patient to take money from the impatient. This appears to be very true here. Top estimate 300p. low estimate 50p if non commercial. CEO's target to make this a 100 million company within 3 years that would equate to 4.25 per share. Long termers are on to a good thing.

oily .... don't forget that there is a lot of money to be made on selling short too! ..... i am no expert, but i am under the impression that even if "good shows" are found, it still takes several months to evaluate exactly what has been found - i.e. it would be a racing certainty thaty EME's sp would get far too ahead of itself

No whiffs today then? ;-)) Hmmm.

cynic - I'd say 2-4 weeks probably to log and test once drilling finishes.

Non-commercial and price will be <25p IMO. They've not a lot else successful this year.

sort of my uneducated view, but not with sufficient conviction to short

Hi cynic, you seem to be a level headed, knowledgeable sort of chap. I am asking you this here because I dont see any entries by you on COIL's thread. Do you know how to work out the value of a 14 trillion cubic feet of gas find. Ballpark figures will do. If you want to investigate further just look at Methanol Australia Ltd. MEO.AX and their NT/P68 exploration permit 275 miles NW of Darwin. The sp has risen 3 fold since 24 Aug 0.18AUD to 0.58AUD on Friday 24 Nov. There is talk of them quoting on the London exchange, possibly one to watch. Please give me your thoughts on this one, ta oily.

oily .... i have put a post on COIL for you ..... can see no particular merits in that company i am afraid ..... but i don't care for eme much either!

Hi cynic Glantal extension until Dec 2009, price moving up nicely. I found my answer to price of gas on PELE news release this morning $2.5 to $3 per thousand cubic feet. I've done some calcs on Coil thread, thanks for your help, oily.

oilyrag

I did the calculation on your $2.5 / thousand cubic feet. Probably got the decimal point in the wrong place as it looks way way to high

I work on the following

1TCF found but not ready to go a) $200m in North Sea
b) $50m in the middle of nowhere a-la VOG,COIL
etc

1TCF ready to come out of the ground
a) North Sea -- $800m
b) $400m in the middle of nowhere

THese are low but reasonable IMHO as the shares do not trade abover these levels normally Look at VOG for instance

Do you guys ever include the costs of getting the stuff out? You have to drill the wells, put in pipelines and platforms and pay ongoing working costs. There are also the vagiaries of the gas market, which is an awful lot more volatile than the oil one.


Anyway, I digress a bit off topic. Wonder what tomorrow's weekly update will say - whiff or no whiff? ;-)

No whiff

They have stopped short of td to run wireline logs.

Looks promising.

"Sugarloaf Hosston Prospect, Texas USA
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AIM quoted Empyrean Energy PLC today announces that as at 6am Texas time on 28th
November 2006, the Sugarloaf-1 exploration well located in the onshore Gulf
Coast Basin was at a depth of 20,896 feet (6,371 metres). The current operation
is conditioning the hole and preparing to run wire-line logs.

Since the last report released on 21st November 2006, the well has continued to
drill in the primary target of the Sugarloaf-1 well.

It is expected that the running of the wire-line logs and interpretation of
these and other geological information will take several days.

I think they've TD'd sww. Slightly shorter than planned. Wouldn't read too much into it, but obviously no gas shows for a while??

and clearly the market is unimpressed

The writing was in last week's, cynic - no whiffs!

;-)))

PS - they've had gas, but was it as much as they'd hoped? We'll find out in due course.

It wouldn't be clever if project #3 came up short methinks.

Market certainly don't like it!

Of course experience tells me that running the logs means nothing.......

Woodside do a lot of that offshore Mauritania........ test dry holes.

do hope this thread is not becoming anal ..... lol!

Ha ha ha................I'd better change the wording, no sod it, I'll leave it!

EME's Sugarloaf-1 venture partner 'Adelph' AGM report states the drilled well has 50.5m aggregate gas shows:

http://www.adelphienergy.com.au/files/presentations/ASX%20Release%2028%20November%202006%20-%20Adelphi%202006%20AGM%20Presentation.pdf

Currently running wire logs to determine production test decision!

"drilled well has 50.5m aggregate gas shows" ...... how significant an amount is that? ..... not hugely is my guess, for otherwise sp would have shot up rather than fallen, but am happy to be contradicted