Drilling Recommences at Sugarkane

Empyrean Energy Plc provided the following update on operations on Block B which is part of the Sugarkane Gas and Condensate Field:

Kowalik #1H Well

Empyrean has been advised by the operator, Texas Crude Energy Inc, that on Sept. 12, 2008, the rig suspended operations in preparation for Hurricane Ike, the rig was also evacuated as a precaution. Empyrean has been informed that the rig sustained no damage from the hurricane and operations recommenced on Sept. 14, 2008.

Since last week drilling of the horizontal section of Kowalik #1H within the target Austin Chalk has continued and as of Sept. 16, 2008, the well had reached a measured depth of 13,835 feet. Following minor changes in the rig configuration to more accurately measure gas readings, TCEI have advised an increase in background gas values to 1,000 - 1,400 units. Gas flares have been observed of a more sustained and substantial nature whilst drilling during the last week and a significant flare occurred following a wiper trip.

While encouraging, the commercial significance of these gas shows and flares will not be known until the well has been flow tested.

The horizontal section is targeting the upper pay interval that has been reported as successfully producing gas and condensate in Block A (TCEI JV Block A-1 and A-3 wells).

Empyrean has an 18% working interest in this well.