Empyrean Energy Updates on Riverbend Project

Empyrean Energy has been advised by Krescent Energy Company LLC, the operator of the Riverbend Project in Texas, of the following update on operations at the Quinn-3H well:

Since the last update a Hydraulic Workover Unit with a 1 ¼ inch work string and cleanout assembly was mobilized in to try to clean the debris that had blocked the well. The well was cleaned out to 16,450' which is within 100' of the end of the lateral. Circulation was lost during the end of the operation and the work string was pulled out of the hole leaving 14' of the tubing and the mill in the bottom of the lateral. The shut in tubing pressure was 9,100 psi. A flow test was initiated and the well flowed for 45 minutes before the wellbore plugged up again.

A Coiled Tubing Unit was rigged up to clean out the well again and try to stimulate the wellbore with acid and water. During the clean out the 14' fish (tubing and mill assembly) was found at the top of the 3 ½" liner and below the 2 7/8" tubing at about 14,184'. It is believed that the fish had moved under high pressure from the bottom of the lateral to the top of the liner. After milling on the fish for a period of time the work string was pulled out of the hole. The mill was worn out. An attempt was made to pump fluids past the fish unsuccessfully. The pressure of the well was bled down to zero and the Coiled Tubing Unit was moved off.

Krescent is currently evaluating whether to make a further attempt at fishing the 14' piece of tubing and mill out of the well and subsequently clean and then flow the well from the target Austin Chalk or whether to come up the hole to attempt a completion in the shallower Saratoga formation that has exhibited potential net pay on logs.

The gas pressures encountered and the flow rates, albeit for an extremely short period of time have given the operator enough encouragement to be planning a second well to test the target Austin Chalk zone.

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