Empyrean Energy

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

I don't think it means anything significant at all.

I say that depth of 50.5m (170ft) gas shows over many square miles is huge, wire logging should be completed by the weekend.

No matter how big the find if at all, don't lose sight of the fact that it is only 6.5% EME's.

The Master - trust me, it ain't huge!!

50.5m is decent (although not outstanding) in a single horizon, but it would seem this is split over several intervals, i.e. interbedded. It is impossible to map these on seismic and therefore testing is the only way of confirming the potential. Wireline logs should give an idea of porosity, etc.

Personally, I'd hate to be holding for now. If the logs are poor, EME is on the scrapheap IMO with 3 out of 3 disasters. If the logs are decent I still don't see massive upside, but it provides good trading.

;-)

There will be more downside for EME then

Dunno about that - wait until after logs and possible testing to be sure one way or the other.

It's probably safe to say EME is probably not the prospect it was a year ago at less than 40p, though, given how their prospects have failed to produce anything thus far?

oilyrag - 29 Nov 2006 20:31 - 580 of 583
No matter how big the find if at all, don't lose sight of the fact that it is only 6.5% EME's.

I would say its better having 6.5% of something rather than 6.5% of nothing.
Also as far as i know there are 4 companies with holdings in this,they would not still be spending good money looking if they didnt think there would be something worth it at the end.
My guess is there will be somthing good here,and they are keeping it lo key at the moment to get the cheapest share price,then we will see it fly.

Hi tcdmct I agree with you, and as I am holding I hope you are right, I was merely pointing out that they are the minnows in all of this and therefore wouldn't be earning the lions share.

6.5 % is rather good for eme as the potential of 800BCF may be available now td is reached its only a matter of short period of time before, the vast amount of reserves are announced so the placeing price of 1.30p will initially be surpassed soon.!

tcdmct - you don't half talk some rubbish.

Pretty much all wells, be they dry or gushers, have several partners. "Good money" is more often spent on dusters than wells with producable reservoirs. It's the nature of the game. And you always log wells whether you've seen anything during drilling or not. It's a condition of the drilling license the world over and always has been.

You should learn something of the industry you are investing in IMO!

Big Al

You can suck on my drilling point and see if i can produce a gusher.Some how i think you will fail.

Regards TCDMCT

;-)))))))

No its a little larger than that,Oh sorry what that your???????

;-))))))))

http://moneyam.uk-wire.com/cgi-bin/articles/200612040910061521N.html

Sugarloaf-1, Primary target- Wire-line log Interpretation

.

Thanks for the link, sww.

So, last week's "potential" has been almost halved to 90ft net over several intervals. They also have to frac it to gain what they think might be a meaningful flowrate/production at an additional cost of $2m. I can't remember that bit being part of the plan - anyone else?

Conclusion - they've got something at Sugarloaf, but it is certainly not what was hope for I'd say. Price movement confirms IMO and it's going to be some time before they get to flow the thing due to tightness in the equipment market. Price likely to drift downwards on a lack of newsflow unless another project springs forward to catch the eye of punters?

Hmmm.

Full RNS :


Empyrean Energy PLC
04 December 2006

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

Sugarloaf Hosston Prospect, Texas USA

Sugarloaf-1, Primary target- Wire-line log Interpretation
----------------------------------------------------------

AIM quoted Empyrean Energy PLC today announces that wire-line logs were
successfully run over the open hole section of the Sugarloaf-1 well between
16,998 feet (5,182 metres) and total depth of 20,896 feet (6,371 metres).

Interpretation of wire-line logs over the primary target indicates that an
aggregate of 90 feet (27.4 metres) of potential reservoir are gas saturated and
may be capable of commercial production after fracture stimulation.

Based on the log interpretation and the gas indications obtained while drilling,
the well participants have elected to run and cement a production liner,
fracture stimulate and test the zones of potential interest. The total cost of
these operations is estimated to be US$2 million.

By 6am Texas time on 3 December 2006, the production liner was in the process of
being run to total depth prior to the well being prepared for temporary
suspension so that the deep drilling rig can be released.

Preparation of the well for fracture stimulation and flow testing will be
carried out with a smaller work-over rig. An update on the timing of the
fracture stimulation and flow testing operations will be provided when the
equipment has been contracted.

After the primary target has been tested the joint venture will make a decision
on production testing the shallower carbonate reservoirs previously identified
as potentially productive.

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.


I have bolded the bits I find interesting. I've read this a couple of times now and find no concrete positive. It's all negative news compared to what has gone before IMO and the final paragraph on testing the shallower stuff is simply thrown in to leave us with a "carrot".

"Nil point" as they say on Eurovision!!

Al
;-)

"gas saturated and may be capable of commercial production after fracture stimulation"

that was the bit i found both interesting and pretty negative - i.e. even if the primary target is deemed capable of commercial production, it will still not be straightforward.

my biased opinion is that if you have a profit, take it now, and if you haven't, then consider seriously whether or not the wisest course of action would be to cut and run

cycnic - indeed.

The point is, in plain English, that this reservoir is deep. Rocks at that depth are highly compacted due to the weight of overburden. This reduces porosity and premeability (general rule), thereby reducing pore space to hold larger volumes of gas (or oil or water) and its ability to flow between pores in order to produce. Stimulation increases permeability allowing higher flowrates. It can't, of course, increase the volume held in the reservoir.

Here endeth Al's layman's guide to oilfield reservoirs!! LOL!