Empyrean: Gas Zone Drilled in Project Margarita Well

A gas show was observed in the primary target Frio 1.33 sand with interpretation of the wire line logs indicating a gross gas zone of 13.9 meters and net gas pay of 5.6 meters over the interval 1,423.2 to 1,437.1 meters with gas on rock and no water. Production casing has been run to enable production testing of the well later in the week.

The Dona Carlota Gas Field, based on an interpretation of the 3D seismic data, has an estimated recoverable reserve of 0.62 billion cubic feet of gas.

AGAVERO PROSPECT

The truck-mounted rig has moved from Dona Carlota-1 to the Agavero Prospect over the weekend to spud Agavero #1.

The Agavero Prospect is the second of the three prospects that are being drilled in the current program which are analogues of historic prolific Frio and Vicksburg sands production in the project area at <2,000 meters depth. The drilling program is expected to run until the end of July 2007.

As with the successful initial three well program, tie in of any commercial discovery made on these 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.

The prospects have the following mean recoverable gas reserve potential and total depths:

Prospect Name   Mean Rec Reserves   Total Depth      Status

Dona Carlota    0.62 bcf            1,524 m          Drilled gas discovery
Agavero         0.70 bcf            1,340 m          Drilling
Climaco         1.60 bcf            1,980 m          To be drilled

Participants in the Margarita Project are:

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