Drilling Update

Empyrean Energy PLC
18 October 2006




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


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


AIM quoted Empyrean Energy PLC today announces that at 6am Texas time on 17th
October 2006 the Sugarloaf-1 exploration well, located in the onshore Gulf Coast
Basin in Texas, USA, was at a depth of 17,000 feet (5,183 metres) and the
operator was preparing to run 7 inch liner to be tied back into the 9 5/8 inch
casing set at 14,480 feet (4,415 metres).

Since the last report, the well drilled 2,520 feet (768 metres) of 8 1/2 inch
diameter hole, mostly in a Cretaceous age limestone, which was a secondary gas
target in the well. In this interval, several methane-only gas shows were
obtained. In order to isolate the extensive interval of limestone in
anticipation of higher pressures in the Hosston Formation target, drilling was
halted at 17,000 feet (5,183 metres) to enable a 7 5/8 inch liner to be run and
cemented in place.

Wire-line logs have been run over the interval 14,480 to 17,000 feet (4,415 to
5,183 metres) and preliminary interpretation indicates the presence of a few
thin zones of interest. A decision as to whether any zone is sufficiently
attractive to warrant production testing will be made by the joint venture once
the well has reached total depth and final logs are available.

After the 7 inch casing has been run and set, drilling will resume towards and
into the primary Hosston Formation target, which is expected to be reached
within a few days. Based on seismic data and an offset well the Hosston
Formation is anticipated to consist of more than 4000 feet (1,220 metres) of
inter-bedded sandstones and shales with the potential for multiple prospective
intervals.

The proposed total depth of 21,000 feet (6,400 metres) is expected to be reached
during November assuming trouble-free drilling



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]        

Empyrean Energy plc
Tel : [phone]

Imran Ahmad/ Cecil Jordaan
HB-Corporate
Tel: [phone]



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