Empyrean Updates Sugarloaf Operations

Empyrean provided the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

Production Update

The recently completed Morgan-1H and Easley-1H wells have now been on production for sufficient time to provide the following first 30 day production figures:

  Total Gas Production (mmscf) Total Condensate Production (bbls) Average Daily Equivalent Gas Rate (mmscfe/d)
Morgan-1H 109.4 38,500 19.97
Easley-1H 125.9 12,212 10.13


These additional production figures continue to be very encouraging for the economics of the field.

Rancho Grande -1H

Empyrean has been advised by the Operator that the multi-stage fracture stimulation operation of the Rancho Grande #1H well has now been completed and the well is presently unloading. A production update will be provided to the market once stabilised flow has been achieved.


Empyrean has been advised by the Operator that the Kowalik-1 well location will be twinned with a new well, which is planned to spud in July 2010. This decision has been made in light of the sub-optimal original well design for the now preferred completion activities and the previously reported operational difficulties at the well. The Kowalik redrill will be the first of a number of Sugarloaf wells to be drilled during this calendar year where all Joint Venture partners will contribute to costs and derive revenue on a post farm out basis. Because of Empyrean's increased working interest in the original Kowalik well the company will hold an 9% working interest in the planned redrill.


A further announcement will be made as significant developments occur.


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