Empyrean Adds Acreage over Sugarloaf

Empyrean Energy PLC said that it has increased its leased acreage over the Sugarloaf Project area in Texas.

During the drilling of the Sugarloaf-1 well Empyrean previously reported to the market on the 29th September 2006 a 92 feet (28 meters) zone of possible gas pay, interpreted from wire-line logs and gas shows in Cretaceous age carbonates which were the secondary target in the well. Since that report, further detailed analysis of the logs has been undertaken by the project Operator Texas Crude Energy Inc ("TCEI"). TCEI has advised that this possible pay interval is comprised of 3 zones of porosity which are expected to be tested separately. Flow testing of the possible pay zones in the Sugarloaf well is intended to be undertaken as soon as practicable.

The Operator is presently conducting engineering and reservoir studies to determine the best method of completing the zones for testing. Whatever method is chosen it is expected that fracture stimulation will be part of the procedure as is typical in such carbonates. The technical assessment, test design, permitting and securing of services is expected to take approximately 2-3 months.

As a result of the analysis of this possible pay, the Operator has extended the Joint Venture's land acquisition program within the Area of Mutual Interest ("AMI"), increasing the area over which the Joint Venture has rights to all depths (including the abovementioned carbonate zone) to approximately 19,500 acres to date.

Operations currently in progress at the well-site include the plugging off of the deeper section of the well and recovery of approximately 15,000 feet of 5 inch tubing (which will be available for re-use in the well if needed), as initial steps required in plugging back and testing the shallower zones.