Empyrean Set to Frac Sugarloaf-1

Empyrean Energy PLC reported Monday that wire-line logs were successfully run over the open hole section of the Sugarloaf-1 well between 16,998 feet (5,182 meters) and total depth of 20,896 feet (6,371 meters).

Interpretation of wire-line logs over the primary target indicates that an aggregate of 90 feet (27.4 meters) 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.

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