TCEI to Flow Test Encouraging Gas Flares at Sugarloaf Block B

Sugarloaf Prospect
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Empyrean Energy has provided the following update on operations on Block B which is part of the Sugarkane Gas and Condensate Field.

Kowalik-1H Well

Empyrean has been advised by the Operator, Texas Crude Energy Inc ("TCEI"), that on September 30, the well was drilled to a measured depth of 15,239 ft, which equates to approximately 3,500 ft of horizontal section within the Austin Chalk. The Operator is currently tripping out of hole to assess the drilling assembly.

Since the last report the well has produced gas intermittently when drilling, with larger flares observed following periods of shut in when tripping to change components of the drilling assembly. The surface gas readings have averaged 1,500 units during this section. More significant gas flares including a 45-55 ft flare have been observed while drilling prior to pulling out of the hole.

While encouraging the commercial significance of these gas shows and flares will not be known until the well has been flow tested.

The horizontal section is targeting the upper pay interval that has been reported as successfully producing gas and condensate in Block A (TCEI JV Block A-1 and A-3 wells).

Empyrean has a working interest of 18% in this well.


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