Drilling Report

Empyrean Energy PLC
18 October 2007


18 October 2007
                              Empyrean Energy PLC
                  ('Empyrean' or the 'Company'; Ticker: (EME))
             Sugarloaf Prospect, ('Sugarloaf'), Block B, Texas USA

   • Encouraging gas shows as Kennedy #1H well enters target zone


Kennedy #1H Well
----------------
Empyrean Energy Plc advises that at 6am Texas time on 17 October, 2007 the
Kennedy #1H exploration well, located in the onshore Gulf Coast Basin in Texas,
USA had reached a measured depth of 12,720 feet (3878 metres) and was cementing
casing.

Since the last update, the well has been steered from vertical to horizontal in
order to track the target Austin Chalk upper zone, believed to correlate with
the producing zone in the nearby Sugarkane discovery well. Background gas
increased from around 40 units to about 100 units on entering the Ausitin Chalk
target zone. The commercial significance of the elevated gas background is not
known but is regarded as encouraging. As planned, casing is now being run before
the planned final 4,850 feet (1273 metres) of the well is drilled within the
near horizontal target Austin Chalk upper zone, in order to evaluate the zone
and its productive potential.


Sugarloaf-1 Well
----------------
The Operator has advised that preparations have commenced to re-frac and re-test
the deepest of the three zones of gas shows and log interpreted potential gas
pay in the Cretaceous age Austin Chalk Formation. As a result of the reported
early screen out when attempting to frac this zone last month, a revised frac
design and program will now be adopted. Timing of the proposed fracture
stimulation operation is subject to the availability of frac equipment and
services but is expected to take place as soon as these are available.

Further updates will be provided following developments.
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:

Jonathan Charles / Ed Portman
Conduit PR
Tel: [phone]

Rod Venables / Cecil Jordaan
HB Corporate
Tel: [phone]

Empyrean Energy plc
Tel : [phone]



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