Sugarloaf Block A Update

RNS Number : 7454R

Empyrean Energy PLC

06 May 2009

 



6 May 2009

Empyrean Energy PLC 

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

Sugarloaf Prospect, ('Sugarloaf'), Block A, Texas USA

• Combined total production from Block-A for the month of March 2009 was reported to the Texas Rail Road Commission ('TRRC') as 15,621 barrels of oil and 113,693,000 cubic feet of gas.

• Empyrean has a 7.5% working interest (5.25% net interest after royalties) in the 5 Block-A wells that it has participated in.

Empyrean Energy Plc, the oil and gas explorer and producer with assets in Germany and the USA, is pleased to provide the following update on operations on Block A which is part of the Sugarkane Gas and Condensate Field:

The operator of Block A, Conoco Phillips, has reported production figures for the month of March 2009 to the TRRC. The production figures show production from the Block A-1 Well (Kunde 3), Block A-3 Well (Baker Trust 1), Block A-4 Well (Baker Trust 2) and the Block A-5 Well (Marlene Olsen). It is believed that the fifth well, the Block A-2 Well (Kunde 2) is presently awaiting production facilities. It is not known how many days production this represents for each well. The following table shows the production summary for the individual wells:

Well Name	Oil Production (Barrels)	Gas Production (Cubic Feet)
A-1	5,687	18,205,000
A-2	Awaiting facility	Awaiting facility
A-3	3,862	42,950,000
A-4	5,372	49,907,000
A-5	700	2,631,000
TOTALS	15,621	113,693,000

Empyrean advises that following drilling and completion operations the daily reporting of operations by the operator ceases once wells move to production status. The general regime for the reporting of production in the USA is that the operator will file monthly production figures to the TRRC. This is usually accompanied by a subsequent notification of that filing to any partners.

Revenue notifications and accompanying monthly revenue cheques are received approximately 1.5 months following the production for oil and 2.5 months following the production for gas.

Commenting today Empyrean Executive Director, Tom Kelly said - 'We are pleased with the early production, in particular from the horizontal wells A-1, A-3 and A-4. With the A-2 vertical well to come on to production and further work likely on A-5 vertical well, we expect that production will increase. We are also finally able to confirm that Conoco Phillips is the operator of the Block A wells and having a company of their caliber operating really speaks for itself.'

For further information 

Empyrean Energy plc 

Tom Kelly

Tel: [phone] 

Blue Oar Securities Plc

Olly Cairns / Jerry Keen

Tel: [phone] 

 

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