Empyrean Announces Well Updates

Empyrean announces the following on its Kowalik #1H and Kennedy #1H wells:

Kowalik #1H 
Empyrean has been advised by Texas Crude Energy Incorporated (TCEI), the operator of Block B on the Sugarkane Gas and Condensate field, of the proposal to drill the Kowalik #1H well. The well will spud as soon as the rig completes operations on another well and is mobilized to site, possibly by mid July. The well is engineered to take advantage of the knowledge gained from the work carried out to date within the field and an analogous offset field in the region. It will target the upper pay interval that has successfully produced gas and condensate in the TCEI JV Block A-1 and A-3 wells. The well is planned to have a 6,000ft horizontal section.  
Empyrean will have an 18% working interest in this well.
Kennedy #1H
Empyrean has been advised by TCEI that preparations are underway to re-stimulate the deepest 800ft of the horizontal section of the Kennedy #1H well. The fracture operations previously reported by Empyrean in May 2008, have been partially successful. Although stable production of minor gas volumes and 40 bbls per day condensate were achieved, it is believed that the well would benefit from a larger fracture stimulation with a modified design.  TCEI will add perforations as well as using a much larger stimulation with higher strength proppant.
As previously reported, the Kennedy #1H is believed to be located in the middle interval  of the reservoir, which has not previously been fully tested. Empyrean is encouraged by the demonstrable productivity and looks forward to the results of the second stimulation. Subject to equipment availability, TCEI have advised that this work could start within the next 14 days.
Empyrean has an 18% working interest in this well.

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