Empyrean Spuds Sugarloaf Block A-4 Well

Sugarloaf Prospect
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Empyrean was advised by Texas Crude Energy Inc that the TCEI JV Block A-4 well has spudded on Block A. The report showed that operations had commenced on July 4, 2008 and that presently the well had reached a depth of 9,664 feet and the operator was drilling ahead.

The TCEI JV Block A-4 well is designed to drill to the upper pay zone that has proven productive in the TCEI JV Block A-1 and A-3 wells and then drill approximately 6,000 ft horizontally within that zone in order to effect a lateral completion.

The TCEI JV Block A-1 and A-3 wells had early production flow test rates of 12 million cubic feet gas equivalent per day ("mmcfepd") and 7.8 mmcfepd respectively from shorter lateral completions than the 6,000 ft (approximate) lateral completion planned in the TCEI JV Block A-4 well. It is believed by the operator that there is a correlation between the length of successful lateral completion and the flow rates that can be achieved.

Empyrean has a 7.5% working interest in this well. Further updates will be provided as relevant information comes to hand.


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