Empyrean Energy

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

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!

Big Al - I thank you again for your ability to interpret what I read, and find the relevent bits.

It's very kind of you to take the time out to do this.

I have to agree with your and cynic's view, and I did not rush over to my broker to buy any of these on the strength of the RNS.

If this is uncommercial and it looks bordderline at best, it would cause the Company problems I think.

I was reading an article in The Telegraph about AIM E&P co's not finding it so easy to get Institutional backers of late,

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/12/03/ccoil03.xml


I also note Fidelity are trimming back across the board in mid to minnow oilers. I suspect they have been stung too many times now, and that is the reason for portfolio readjustment.

Certainly I have been of the view that it is better to have a hand in oilers that have tangiable assets rather than best guesses of where they may find something.

Typically if you look at the Mauritanian experience, the Woodside geologists are very good at finding dust at the bottom of the ocean hit rate is now about 1/10, of these commercu=iality is a lesser fraction and that's probably why they fired their Chief Geologist a few months back.

This Company may have found something with it's partners but will it be enough to be commercial?

I doubt it.

I work now according to these rules,

1) Never fall in love with a share
2) Never fall in love with a share
3) Never fall in love with a share

Seems to work this week!

sww - no problem. There's never any absolute certainty of course, but it's been an interesting exercise in outing the likely truth here.

At the end of the day, gas readings whilst drilling are highly subjective and can be easily influenced by the overbalance of the mud. I've drilled reservoirs that have been gushers, but we saw nothing due to the high differential pressure. Then there's the flipside - here we saw, on the surface of it, decent gas shows, but we were not given all the info, i.e. mud weight, ROP, flowrates, etc, etc, which all determine the value of that gas show. Of course, with EME and many other explorers, they emphasise the "good" and the suckers pile in. The fact the have to frac to get anything meaningful implies the gas shows when drilling were highly misleading IMO in the overall scheme of things.

That is also a good lead into the article you linked. It sums things up perfectly. The gold rush in AIM resource stocks was over early this year IMO and the majority of money has been made watching hopes becaome disappointment as fail to deliver even a sniff.

The BBs are full of threads dedicated to once hopeful outfits that are approaching the end, FAO indeed being one. They've no cash left, but punters are still running around quoting this or that valuation. At the end of the day, it will go for bottom dollar, otherwise the bigger fish simply wait for the company to die and pick the acreage up for little or nothing when it is put back up for sale/lease.

RESOURCE STOCKS ARE HIGH RISK!!

I just wish small investors would realise this and invest accordingly, which also means when to get out and how little to risk when you invest in these things!! Unfortuntaely the BBs are populated by mugs desperate to make quick cash and they swallow RNS's like sweeties.

Speaking of swallowing, where's my buddie? ;-)

Oh my god, have you seen the latest, a 44% share in project Margarita. 6 low risk shallow wells followed by 3 higher risk deep wells. I reckon were gonna have RNS's coming out of our ears. Still it may push sp a little higher because Sugarloaf certainly isn't.

I like the drink and the project intrigues.

Overall, though, there's stuff to produce in Texas, but let's not get carried away. It's probably the most mature province in the world and finding / producing large ain't possible.

What EME, like all small outfits, really needs now is cashflow from production or selling finds on. It can't keep haemorraging (spelling?) money like this forever.

Big Al : that is one of the problem with the RNS as is does not mention how much the farm-in costs. This may well give them production in the near term but would like to know at what cost to EME.

Rutherford - very true.

How often do we see crucial info left out? ;-))

http://moneyam.uk-wire.com/cgi-bin/articles/200612060736123342N.html

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

Sugarloaf Hosston Prospect, Texas USA
-------------------------------------

AIM quoted Empyrean Energy PLC today announces that since our last report on the
4 December 2006, 5 inch production liner has been successfully set and cemented
at 19,791 feet and has been tied back into the casing at 17,000 feet. The
drilling rig is presently laying down drill pipe.

Empyrean will inform the market as soon as it receives confirmation as to the
likely timing of availability of the deep work-over rig required for testing.

Breakfast was at 5am and consisted of hickory smokey bacon on rye...........

Update 13th Dec '06

Sugarloaf Hosston Prospect, Texas USA
-------------------------------------



Sugarloaf Prospect, Texas USA

Empyrean advises that the Sugarloaf drilling rig was released on 9 December
2006. The Joint Venture is currently working on a suitable testing program for
the well and is in the process of contracting appropriate equipment to undertake
these operations. We will advise further once this timing has been firmed up.

Through recent support - next stop 48p likely?

;-))

EME is now into Margarita Project...this is a joke. This management really can't concentrate on what they are doing. Sugarloaf is hanging in the air waiting for appropriate equipment, and now they are in the margarita project. Surely they could foresee what equipments are needed - very amateurish organisation

I think they are trying to divert attention from Sugarloaf....maybe non-commercial.

AVOID EME!

hlyeo98,,,,,,,are you thick

Because a company lets its investers know what it is buying into then they are doing it to divert attention from other things.

God sake get a life or even a wife.

don't particularly agree with hyleo's logic, but sure as hell agree with him that this share is for fools and horses only ...... the company has disappointed far too often to warrant support, though that does not prevent many a lemming from diving in in hope ..... or even hanging on when everything dictates otherwise (qv SEO) in the vain or vague hope that all will come right in the end ...... it rarely does!

tcdmct...you can live in hope...but I'm sure you will live in vain. Are you blind that EME is drifting downwards?

i've switched to Petrel...watch it rocket next week

Hi Maestro, do you think its going to rocket because the've got rid of Saddam? I think that because of the political and unstable situation in Iraq at the moment, this is a stock that one can afford to miss out on, as there is going to be an enourmous risk trying to bring it home. What does anyone else think.

Still waiting for the EME bulls to comment on the results released 29/12/06.

Where have you all gone?

I said:

Big Al - 13 Dec 2006 14:56 - 606 of 613
Through recent support - next stop 48p likely?

;-))



I see it banged off 48p briefly on Friday. Wonder if there's support or whether we're heading for 30p again.