Empyrean: Record Rains, Flooding Delay Shallow Drilling at Margarita

The drilling program, which was expected to have commenced on May 20 on the Agavero Prospect, has been delayed by record unseasonal rains and associated flooding that isolated the drilling rig on a nearby location. The rig has now been able to move to the Donna Carlota Prospect location to commence operations--rather than the Agavero Prospect--because floods have now made the Agavero location temporarily inaccessible.

The Donna Carlota Prospect is one of the three prospects that are analogues of historic prolific Frio and Vicksburg sands production in the project area at less than 2,000 meters depth. The prospects with mean potential target outcomes and final well depths are summarized below. As with the successful initial three wells program, any commercial discovery made on the prospects will be rapid as the project area is crossed by a number of gas pipelines with access rights and available capacity to tie into.

Prospect      Potential Mean Reserves   Total Well Depth
Agavero       0.7 BCF                   1,341 meters
Dona Carlota  0.8 BCF                   1,524 meters
Climaco       1.6 BCF                   1,981 meters

Participants in the Margarita Project are:

• Empyrean Energy PLC, 44.00%
• Sun Resources NL, 20.00%
• Victoria Energy NL, 20.00%
• Wandoo Energy LLC, 16.00%