TCEI Sidetracks Kowalik-1H in Sugarloaf Prospect

Empyrean Energy Plc has provided the following update on operations on Block B, which is part of the Sugarkane Gas and Condensate Field located in Texas.

Kowalik-1H Well

Empyrean has been advised by the Operator of the Sugarloaf AMI, Texas Crude Energy Inc ("TCEI"), that as of August 19, 2008, the Kowalik-1H pilot hole had been logged and plugged back. The logs from this step out well have shown the expected correlation to previous wells. The pilot hole is presently being sidetracked and will then be built to near horizontal by the top of the target chalk formation, at which point production casing will be run. Thereafter, the remaining build section will be completed and the horizontal wellbore will target the upper pay interval that has successfully produced in the TCEI JV Block A-1 and A-3 wells.