Hercules Prospect, BP America

RNS Number : 1839S

Empyrean Energy PLC

06 September 2010

 

6 September 2010

Empyrean Energy PLC

('Empyrean' or the 'Company', (EME))

Hercules Prospect, onshore Texas, USA.

·     BP America A-740 well pipeline construction complete

·     Well turned on to sales on Saturday 4 September

·     Discovery well for the Hercules Project

BP AMERICA A-740 #1 WELL UPDATE

Empyrean Energy Plc is pleased to advise that the operator, Krescent Energy Company LLC ("Krescent"), has completed construction of the pipeline required to connect the BP America A-740 well to the nearby sales pipeline.

On Saturday 4 September the well was turned on to sales with a flow tubing pressure of 3250 psi and was heavily choked back to achieve a gas rate of 210,000 cubic feet of gas per day (210 Mcf/d). This rate is being deliberately achieved whilst the pipeline owner installs a compressor to assist with the additional flow of gas from this new discovery. The pipeline owner required the well to be tied into their system before works on the compressor could start.

Following installation of the compressor, the well will be walked up to a stable production rate. The well will be monitored and evaluated during this process.

Further updates will be provided over the coming weeks as the compressor is installed and the flow rates stabilise.

Empyrean has a 10% working interest in this well.

Commenting today Empyrean Executive Director, Tom Kelly said "We are delighted that following a patient wait for the permitting and construction of the sales pipeline - the first well at the Hercules Project can now be confirmed as a discovery. We look forward to the revenue and further evaluation of this well with initial expectations from the operator that there will be at least 3 further offset wells. This is an exciting time for Empyrean with Hercules being the second of its current projects to be put into production. Empyrean expects that as revenue kicks in from its interest in the Sugarloaf Project and the Hercules Project over the coming months the outlook for the company will dramatically improve."

The information contained in this announcement was reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.

Contact:

Tom Kelly                                Empyrean Energy Plc                Tel: [phone]

Nominated Adviser and Broker:

Shane Gallwey  / Toby Gibbs     Astaire Securities Plc                Tel: [phone]

 

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