Empyrean Energy: Phase 2 Drilling Completed at Project Margarita

Empyrean has been advised by the Houston based operator, Wandoo Energy LLC, that drilling operations on the three programmed wells within the second phase of the shallow drilling program of the Margarita Gas Exploration Project have concluded.

Drilling of these last three wells resulted in 2 commercial gas discoveries which had been or are currently awaiting connection to gas sales lines. The discovery wells were Dona Carlota and Agavero with an interpreted gross recoverable resource of 1.3 billion cubic feet of gas. The Climaco well was plugged and abandoned after penetrating the objective section and encountering gas shows, however the gas shows were determined to be non commercial after running wire line logs.

Commenting on the Margarita Gas Exploration Project outcome, Tom Kelly, commercial director of Empyrean said:

"A success rate of 3 commercial discoveries from 6 wildcat wells is a terrific result given that industry statistics are about 1 from 12.

US gas prices are strong and we expect to have approximately 2.3 million cubic feet of gross gas production per day from all three wells combined – this initial production and cash flow is a great result"

Participants in the Margarita Project are Empyrean Energy with 44%; Sun resources with 20%; Victoria Petroleum with 20%; Wandoo Energy with 16%.