TCEI Underscores Operations at Sugarloaf Block B

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

Kowalik-1H

Empyrean has been advised by the operator, Texas Crude Energy Inc ("TCEI"), that at 6 am Texas time on October 14, 2008 the well had reached a measured depth of 16,325 ft which equates to approximately 4,500 ft of horizontal section within the Austin Chalk.

Slow progress over the week was primarily the result of the drill string parting and the subsequent successful fishing operation.

The well has again continued to produce gas while drilling, with regular intervals producing strong flares with back pressure on the well. Gas readings regularly in excess of 2,000 units have continued to be measured.

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 part of the Austin Chalk that has been reported as successfully producing gas and condensate in 3 wells in the adjacent acreage.

Kennedy-1H

TCEI has also reported that production at Kennedy-1H averaged 0.15 million standard cubic feet per day and 44 barrels of condensate per day.

Future production will be reported in the event of a material change or on a quarterly basis.

Empyrean has an 18% working interest in both these wells.
 

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