Empyrean Energy

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

An interesting stock and with news due Q4 05 it could be a worthwhile speculative punt.

The big volume last Friday suggests that drilling news has been leaked, lets hope thats not a gas leak but a good news leak !

I been looking at this one look good speculative buy, suggest early mornings this week looking for results whilst others sleep

Could be jimbobGR.


Empyrean Management:

Patrick Cross has joined the board recently as non-exec Chairman - he has spent most of his career working in senior positions at BHP Billiton. Thomas Kelly, Executive Director is also director of ASX listed Lefroy Resources and has spent 14 years as a financer in investment banking. Malcolm James, non-exec director has also served as director on the board of companies like Cordillera, Eureka Mining, Caspian Holdings and Asia Energy. Chris Lambert, Executive Director has served as non-exec Chairman on the board of Braemore Resources and Altona Resources.

Glantal Project Germany

P10 (10% probability) 6.2trillion cubic feet
P50 (50% probability) 1.2trillion cubic feet
P90 (90% probability) 350billion cubic feet

The company estimates the value of P50 resource at $500million at gas price of $4.60


Eagle Pool Project, California

P50 estimate 7.1 million barrels of recoverable oil and 12.3 billion cubic feet of associated gas.

Both results I believe are due about soon, definitely by the end of the quarter

Good info summary jimbobGR, thanks.

I am seeing about 95% buys today so far, has Barclays just not added sells in yet? what can u see PapalPower

Mostly buys, talk of a forced seller last week, who may have finished this morning.

I would like to know the big buying volume last week, who was it ? Was it RAB in for more ? Trouble is we will not know until a few weeks time for the holdings RNS if it is a large buyer.

Lets hope its a leak of news from the sites, and we get some official news soon.

Galaxy Energy which owns the company that let empyrean energy drill has been moving up since thursday

Empyrean Energy PLC
21 November 2005


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

Drilling update

Glantal Gas Project Germany

Mobilisation of the drilling rig and associated equipment to the Glantal-1 well
site has commenced and 'rig up' activities in preparation for the spud in of the
Glantal-1 well will continue over the next several days.

The drilling contractor has completed the conductor hole and installed and
cemented 13' casing at 20 metres. The drilling contractor will now prepare for
the 'spud in' of the 121/4' hole below the conductor pipe.

The Glantal-1 well is targeting reservoirs, estimated by the independent expert
to have the potential to contain recoverable reserves of between 1.2 and 6.2
trillion cubic feet of natural gas. The Glantal-1 well is designed to test the
seal quality of overlying sediments and determine whether natural gas has been
effectively trapped in economic quantities.

Eagle Oil Pool Development Project, San Joaquin Basin, California, USA

Victoria Petroleum NL ('Vicpet'; ASX Ticker : (VPE)), the operator of the Eagle
Oil Pool Development Project has advised that the rig contracted to drill the
Eagle North-1 well is expected to arrive on location in late December 2005 for
anticipated drilling to commence late December 2005 or early January 2006.

Empyrean's independent consultant has estimated a P10 potential of up to 22.7
million barrels of recoverable oil and 22.7 billion cubic feet of associated
gas, as compared to Vicpet (and other participants in the Eagle Oil Pool
Development Project) who have estimated the P10 potential reserve estimate for
the Eagle Oil Pool Development Project at up to a recoverable 34 million barrels
of oil and 58 billion cubic feet of gas.

It must be noted that both of the above reserve estimates are interpretations of
data and there are subjective assumptions made in the calculations. Empyrean's
consultant has been more conservative. Successful drilling and testing will
provide the participants with more accurate potential reserve figures.

It is anticipated that due to the requirements of the ASX Vicpet, as the
operator, and the other participants will be announcing daily drilling reports.
As Empyrean is governed by the AIM Rules and not the ASX, it is not Empyrean's
intention to make daily announcements during the drilling campaign but rather to
announce all matters of a material nature, as stipulated by the AIM Rules.

Empyrean will make further announcements when the definitive dates for
commencement of drilling are known for both Glantal-1 and the Eagle Oil Pool
Development Project.



Chris Lambert
Empyrean Energy plc
Tel: +44 (0) 207 932 2442

Laurence Read/Amanda Harris
Conduit PR
Tel : +44(0) 207 618 8760
Mob: +44 (0) 7979 955 923

David Newton
HB Corporate
Tel: +44 (0) 207 510 8600

For those wanting to follow the drill updates, read the VPE updates from the ASX on the link below ;


http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=VPE

"spud-in" means, in respect of the drilling of a well, the initial penetration of the ground or seafloor;

jimbobGR, if you look at the shares in issue, the proximity of the gas piplines for easy connection in Germany, the price agreed, and the potential find size, this one if they find that gas, will make the rise on VOG look like a little blip on the screen.

will do if find confirmed, think this definately requires early morning although probably no need to until when?

Do you know how long it should take to drill?

I read on website that once drill arrives on site takes less than 10 days for 'spud in', Any ideas on time to drill

jimbobGR depends on what they are drilling through, and how the rig performs. As a rough estimate I would say news in 4 to 6 weeks once they commence.

On line limits improved a lot after that big trade, could start to make some moves soon.

It is moving very strongly now, considering the intitutions paid 35p, and the potential is quite large, its been very cheap for too long I think, glad its having a wake up call, hope it wants to emulate MXP ;)

A good post by Zengas.


ZENGAS - 21 Nov'05 - 13:39 - 423 of 434

The comapnies potential from the Eagle Oil prospect USA is on a par alone with what Chaco have on an asset for asset comparrison.

Chaco valuation is 36m before start up/drilling or seismic and that only equals what potentially EME may have from Eagle.

Totally discounting anything re the German prospect - Empyrean at 43p is only valued at 13.5m with 3m cash. Minimum comparative value is at least 70p minimum per share or 20m market cap or on a par with Chaco would be 1.16 and that is totally discounting Germany.

Another good post by Zengas !

ZENGAS - 21 Nov'05 - 14:02 - 454 of 454


RE-CAP from my earlier post.


Empyreans two projects.

Eagle Pool - Vicpet one of our partners who are 20% holders reckon it will increase their market cap 100% ie by 21m on just their 20% share based on appraisal well success. With Empyrean holding 38.5% that should give them 42m or circa 50m from their present 9.2m mkt cap. - A potential 5 fold increase. At that stage EME would need to raise at least a few million to take us to the next stage. Possibly 15% dilution to gain a further potential 70% upside again.

We are expecting 38.5% from a forecasted bopd output of 5500 barrels oil plus gas - ie 2100 bopd plus gas to Empyrean. The first (300m) horizontal well is expected to have flow rates of circa 1000 bopd plus gas. If successful subsequent (900m) horizontal wells are expected to have flow rates up to 2000 bopd plus gas.

As an example Global Energy Development operating in Colombia on 17 boe reserves and circa 1800 boepd has a market cap of 100m. The Eagle prospect could/should on success take us close to something similar to GED.

This project alone could see 5 - 9 fold upside to share-holders.
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Now Germany - the potentially huge gas project, but more riskier until the intactness of the seal is known (ie drilled).
Empyrean will have up to a maximum 52% share.

Pannonian are our partners on this and Galaxy their parent Co who are keen to get a foothold in Europe for specialist projects of this nature, bought out
Pannonian some time back. Galaxy are an American energy company specialising in these kind of projects operating similar successful ones in the USA.
One might well ask why would specialists like Galaxy be keen to get their hands on European potential like this by buying out Pannonian. They too will have well studied the potential before buying out Pannonian.

"The permit contains the Pfalzer Anticline which is a 515 square kilometre structure containing deep anthracitic coal beds overlaid by shale and sediment. The coal beds are too deep to mine economically but have been estimated by the independent expert to have generated many hundred trillion
cubic feet ("Tcf") of gas, with a recoverable gas potential of up to 6.2 Tcf in the first drilling prospect alone."

As an example VOG found 500bcf (half a trillion c/ft) gas. 74.8% is attibutable to VOG (350bcf).

With Russian gas prices somewhat different, VOG will have to sell most likely to Gazprom and a certain amount domestically which could be in
the order of $35 per 1000 cu metres. (ie 34,500 cu ft). With Gas prices in Gewrmany as in the prospectus given at around $4.60 per 1000 cu feet that
equates to $158 per 1000 cu mts or at the very, very least would be twice the price VOG would achieve. (Im still a long term holder going forward with 75% of my original VOG holding).

With up to 6.2 tcf potentially recoverable in the first prospect alone - it's huge.

If Empyrean only found 10 - 11% of that it would give them similarly a 350bcf share but worth twice the value based on German prices and only 5% royalty
(Max 10%)as what VOG would achieve.

VOGs market cap went from 34m to 105m based on their find. 70m straight away. (1.25p/share) The Broker estimates the company should be worth 3.06 per share minimum which is 250m and at least 180m of that is for the current find of 500 bcf (350bcf to VOG). Therefore what price would Empyrean be worth if the gas price is worth at least twice as much versus what VOG would achieve and in a much more readily available market to sell into, with no obstactles like Gazprom to have to deal/negotiate with.

A find for Empyrean of only 10% or so of the potential should see 100m minimum on their market cap or 11 times the current share price.
Both projects have the capacity to see a potential 20 fold upside - thats why i also referred to the company in a previous post having explosive short term upside especially with roughly only 7m shares on the open market.

It has a lowly market cap of only 9.2m/ 30p - share (floated at 35p) and compared to others that have no production and some bare licence areas, I feel this is undervalued by at least 100% when you see the likes of non producers Chaco 36.6m, Aminex 24.5m who are still early stage bare acerage - yet Empyreans Partners are drilling both projects anytime. The Eagle oil project has already had a producing standard vertical well with 233 bopd and 800tcf gas flow and now fully 3d seismiced to a much greater extent with a horizontal well to spud.

Imperail Energy was only floated 20 months ago at 10m mkt cap/35p share - Its now worth over 180m. Likewise VOG idling for weeks at 34m mkt cap - in a few days market cap is 105m which proves the point if Gems are spotted early the rewards can be enormous. EME does carry a degree of risk particularly on the German prospect but there is relavant reasons already well posted proving the coal seams already exist and by their nature should as the experts predict, have produced trillions of cubic feet of methane gas.
Nothing as we all know is ever guaranteed. Potential gems are difficult to spot early stage, but I feel Empyrean could well be one and as such that is why i have taken a holding.

As ever this is my own opinion based on risk/reward, DYOR etc.

Closed up 50% at 45p not bad fo one day, opinions on tommorow?

personaly i still believe this is cheap. i believe on the potential/risk ratio these are easily worth 80p. i am now 60% up on these and i am happy to leave them there as i think there is quite a way to go. if the drilling is successfull then the skys the limit.