Krescent Completes Construction of Tx. Pipeline

Empyrean advised that the operator, Krescent, has completed construction of the pipeline required to connect the BP America A-740 well to the nearby sales pipeline. 

On Saturday September 4, the well was turned on to sales with a flow tubing pressure of 3250 psi and was heavily choked back to achieve a gas rate of 210,000 cubic feet of gas per day (210 Mcf/d). This rate is being deliberately achieved whilst the pipeline owner installs a compressor to assist with the additional flow of gas from this new discovery. The pipeline owner required the well to be tied into their system before works on the compressor could start. 

Following installation of the compressor, the well will be walked up to a stable production rate. The well will be monitored and evaluated during this process. 

Further updates will be provided over the coming weeks as the compressor is installed and the flow rates stabilize. 

Empyrean has a 10% working interest in this well. 

Commenting Empyrean Executive Director, Tom Kelly said, "We are delighted that following a patient wait for the permitting and construction of the sales pipeline - the first well at the Hercules Project can now be confirmed as a discovery. We look forward to the revenue and further evaluation of this well with initial expectations from the operator that there will be at least 3 further offset wells. This is an exciting time for Empyrean with Hercules being the second of its current projects to be put into production. Empyrean expects that as revenue kicks in from its interest in the Sugarloaf Project and the Hercules Project over the coming months the outlook for the company will dramatically improve."