Sugarkane Flows Sweet for Empyrean, Partners

Empyrean has been advised by Texas Crude Energy Inc that the well (A-4) on Sugarkane Block A has been opened to flow during testing and has flowed on a choked back basis using 10/64" choke at initial rates as high as 2.5 million cubic feet of gas per day and 260 barrels of oil per day with flow tubing pressure of 4400 psi. This equates approximately to a gas equivalent rate (10:1) of 5.1 million cubic feet of gas equivalent per day.

Flow rates over the test period have consistently been in excess of 2.0 mmcfgpd and 200 bopd using 10/64" choke. During flow back operations the well has continued to clean up. It is understood that the operator intends to continue flow back and testing for a day or so and then shut the well in temporarily while production facilities and a sales pipeline are connected to the well. Pipeline sales are typically with the well wide open at a flow tubing pressure of 1000 psi.
Preparations for the sales pipeline connection and production facility have already commenced. The pipeline and facility are expected to be connected during December 2008.
Commenting today, Empyrean Executive Director Tom Kelly said, "This un-stimulated flow from a 1500 odd foot interval of horizontal well is a great result for the A-4 well. This further de-risks the project and provides another successful well that will shortly go into production to a sales pipeline. There is still great potential for wells that have longer horizontal completions in the productive zone to have even better or multiples of these flow rates without stimulation - and we already know that stimulation can achieve excellent results."
Empyrean has a working interest of 7.5% in this well.

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