News

October 14, 2008

Empyrean Energy Reports Good Progress With Kennedy #1H and Kowalik #1H Wells On Its Sugarloaf Project In Texas

The latest update from Empyrean Energy, which is listed on London’s AIM and has assets in the US and Germany, concerns its flagship Sugarloaf project in Texas and specifically Block B. Empyrean has been advised by the operator Texas Crude Energy (TCEI) that commercial production commenced at the Kennedy #1H well at initial rates of 0.2 million cubic feet of gas per day and 60 barrels of condensate on October 2. This initial Kennedy production comes from a fracture stimulated zone of approximately 600 feet in the bottom of the 4,000 feet horizontal section of the well drilled through a lower stratigraphic level to that currently being drilled at Kowalik #1H. To the knowledge of Empyrean this represents the first production from this level within the Sugarkane field.

The company goes on to say that TCEI have also reported that on October 8 the Kowalik #2H well, which is on Block A of Sugarkane, had reached a measured depth of 16,178 feet which equates to approximately 4,350 feet measured gas readings in excess of 2,000 units. Empyrean says that as far as Kowalik #1 is concerned the gas shows are encouraging and flares will not be known until the well has been flow tested.

Commenting on the Kennedy news Empyrean director Tom Kelly said: “This first...