Empyrean Underscores Operations at Sugarloaf's Block B

Sugarloaf Prospect
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Empyrean Energy Plc has provided the following update on operations on Block B in its Sugarloaf Prospect, which is part of the Sugarkane Gas and Condensate Field:

  • Kowalik-1H Well vertical pilot hole completed and about to log and then drill horizontal.
  • Kennedy-1H well to have production facility installed to place on long term production.

Kowalik-1H Well

Empyrean has been advised by the operator of the Sugarloaf area of mutual interest, Texas Crude Energy Inc ("TCEI"), that as August 12, 2008, the Kowalik #1H well had reached the vertical pilot hole target depth of 11,970 feet and the operator was running wireline logs. Elevated gas readings increased from a background of 120 units to approximately 400 units when drilling through the Austin Chalk interval.

Once logged, the vertical pilot hole is planned to be plugged back and then directionally sidetracked to the top of the chalk before casing is run prior to drilling the horizontal section. The well is planned to have a horizontal section targeting the same interval that has produced in the TCEI JV Block A-1 and A-3 wells.

Kennedy-1H Well

Empyrean has been advised by TCEI that the well is currently shut-in while the Operator prepares to install a production facility and tie-in the well to a nearby gas transmission line.

At the time of shut-in the well was producing at approximately 180,000 cubic feet of gas per day, 33 barrels of condensate per day and minor amounts of water (frac fluid).

A decision as to whether to perforate and fracture stimulate the additional 3000 feet of lateral section will be made following further analysis of the performance of the well during production.



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