Empyrean Posts Production Update on Sugarloaf

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

Production Update

The following well has reached the 30 day production milestone:

  Fractured Horizontal Length (ft) Total Gas Production (mmscf) Total Condensate Production (bbls) Average Daily Equivalent Gas Rate (mmscfe/d)*
Rancho Grande #1H 4900 85 31,200 16.2

* The equivalent gas rates have been calculated to reflect value using a 12:1 conversion ratio for condensate and a 25% uplift on gas equivalent volumes due to the high calorific value of the produced gas.

As was reported on June 8, 2010, this well is being operated on a restricted choke as part of the optimization of decline rates and ultimate recovery.

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