Sugarloaf Project Block B Upd

RNS Number : 0581N

Empyrean Energy PLC

04 June 2010

 

4^th June 2010

Empyrean Energy PLC

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

Sugarloaf Project, ("Sugarloaf"), Block B, Texas USA

Empyrean is pleased to provide the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

Production Update

The  recently completed Morgan-1H and Easley-1H wells have now been on production for sufficient time to provide the following first 30 day production figures:-

	Total Gas Production (mmscf)	Total Condensate Production (bbls)	Average Daily Equivalent Gas Rate (mmscfe/d)*
Morgan-1H	109.4	38,500	19.97
Easley-1H	125.9	12,212	10.13

* The equivalent gas rates have been calculated to reflect value using a 12:1 conversion ratio for condensate and a 25% uplift on gas equivalent volumes due to the high calorific value of the produced gas.

These additional production figures continue to be very encouraging for the economics of the field.   

Rancho Grande -1H

Empyrean has been advised by the Operator that the multi-stage fracture stimulation operation of the Rancho Grande #1H well has now been completed and the well is presently unloading.  A production update will be provided to the market once stabilised flow has been achieved.

Kowalik-2

Empyrean has been advised by the Operator that the Kowalik-1 well location will be twinned with a new well, which is planned to spud in July 2010.  This decision has been made in light of the sub-optimal original well design for the now preferred completion activities and the previously reported operational difficulties at the well.  The Kowalik redrill will be the first of a number of Sugarloaf wells to be drilled during this calendar year where all Joint Venture partners will contribute to costs and derive revenue on a post farm out basis.  Because of Empyrean's increased working interest in the original Kowalik well the company will hold an 9% working interest in the planned redrill.

A further announcement will be made as significant developments occur.

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

Empyrean Energy plc 

Tom Kelly

Tel: [phone] 

Astaire Securities  Plc

Shane Gallwey / Jerry Keen

Tel: [phone]

 

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