Drilling Report

Empyrean Energy PLC
21 December 2006



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

                    Project Margarita, Gulf Coast Texas USA
                    ---------------------------------------

                    COMMENCEMENT OF SHALLOW DRILLING PROGRAM
                           ON PROJECT MARGARITA, USA

Empyrean has been advised that drilling has commenced on the El Viejito Prospect
on Project Margarita, South Texas, USA. El Viejito #1 is the first of a six
well, back to back, drilling program on shallow gas prospects (less than 2,000
metres depth) with up to 8 to 10 billion cubic feet ('BCF') of gross potential
outcome.

The shallow prospects to be drilled are analogues of historic prolific Frio and
Vicksburg sands production in the project area at less than 2,000 meters depth.
This program is a precursor to commencement of a drilling program on more
substantial individual deep 30 to 200 BCF gas potential prospects forecast to
commence mid year 2007.

Operations on El Viejito #1 at 07.00 hours Australian WST, Thursday 21 December
2006, was running 8 5/8' surface casing at 630 feet (192 metres) in vertical
hole. On completion of this operation a Christmas break will ensue and it is
planned to drill ahead on December 26th in 7 5/8' hole to basal Frio and
Vicksburgh targets and final depth of 6,200 feet (1,920 metres) where the hole
will be logged and a decision will be made to run 4 1/2' casing and test target
zones of interest.  A further update will be made on completion of the well in
the New Year.

Participants interests on completion of each of the wells in the program are:

*Empyrean Energy PLC       44.00%
# Sun Resources NL         20.00%
# Victoria Petroleum NL    20.00%
 Wandoo Energy LLC         16.00%
                           100.00%
*  AIM listed
#  ASX listed
+  USA Private Interest'

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.

For further information 
 
 
Laurence Read/ Ed Portman 
Conduit PR 
Tel: [phone]/ 
[phone] 
 
Empyrean Energy plc 
Tel : [phone] 
 
Imran Ahmad/ Cecil Jordaan 
HB Corporate 
Tel: [phone] 
 



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