Drilling Update

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.


For further information


Laurence Read/ Ed Portman                                          
Conduit PR                                                                    
Tel: [phone]/                                            
[phone]        

Empyrean Energy plc
Tel : [phone]

Imran Ahmad/ Cecil Jordaan
HB Corporate
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