Empyrean Reports on Sugarloaf Frac Operations

Empyrean has been advised by the Operator, Texas Crude Energy Inc ("TCEI"), that on Wednesday, January 27, more than 2,200 ft of the horizontal liner in the Kennedy-1H well had been fracture stimulated in eight separate stages. The Operator has made a decision to test the zone covered by the eight fracture stimulations now, as they have been unable to set any more plugs to enable further stimulation. Operations will shortly commence to drill out the existing plugs and then flow the stimulated section of the well. This is expected to provide a reasonable test of production performance that can be scaled up for a longer well.

Easley-1H - New Sugarloaf Well

TCEI have also advised that the Easley-1H well has reached a depth of 6,160 ft. An evaluation log has been run and the rig has run a casing string at this depth which is presently being cemented in place. Thereafter the well will be drilled down to the Austin Chalk and Eagle Ford Shale targets as a vertical pilot hole before being sidetracked as a horizontal production well.



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