Hilcorp Makes Progress at Sugarloaf Project

Empyrean Energy Plc provides the market with the following update of operations on Block B at the Sugarloaf Project:

Morgan-1H well

Empyrean has been advised by the operator Hilcorp Energy that the second farm-in well within the Sugarloaf AMI, the Morgan-1H well, was spudded on Friday, February 26, 2010.

The well is located approximately 5 km North West of the Easley-1H well. The well design includes a vertical pilot hole prior to drilling a horizontal section that will access both the Austin Chalk and Eagle Ford horizons following fracture stimulation.

Easley-1H well

On March 2, the operator was drilling ahead at a depth of 15,535 ft (MD) with approximately 2,800 ft of horizontal section now having been drilled within the reservoir. Elevated gas readings have been observed since penetrating the reservoir.

Kennedy-1H and Weston-1H wells

Both wells continue to produce to sales in line with expectation. Production tubing has yet to be installed in either well and further updates on production rates will be provided once this has occurred and stable rates have been established.


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