Gas Flow Rates Deemed Sub-Economic at Riverbend Project

Empyrean provided the following update on operations at the Riverbend Project in Texas:

Quinn-3H well 

Empyrean has been advised by the operator that the well was stimulated with 51,900 pounds of sand and subsequently a coiled tubing unit was used to inject nitrogen to 10,000' in a jetting operation to help unload drilling and fracc fluids from the wellbore. These operations were carried out on sections of the well to test the Saratoga Formation - which was a secondary objective to the primary Austin Chalk target. Despite the very encouraging shows while drilling, the eventual gas flow rates measured during the final testing were deemed to be sub-economic. The operator has recommended that the well be temporarily shut in and abandoned for possible future use as a water disposal well. 

In regards to the potential of the Saratoga Formation across the Riverbend Project acreage the operator advises that, although this initial attempt at a production test was unsuccessful in the Quinn-3H well, the Saratoga Formation still remains a secondary objective at this stage for future wells on the project acreage and information will be gathered as future wells are drilled in the hope of better understanding the production capability for this zone. 

Cartwright-1H well

Empyrean has been advised by the operator that drilling at the Cartwright-1H well has reached a measured depth of 14,844 feet. 

During the last week, a number of large gas bearing fractures have been encountered while drilling. These zones have had high pressure and temperature and the operator is proceeding with caution. 

No conclusions specific to the potential economics of the Cartwright-1H well can be drawn from the drilling activities to date - however it is encouraging to see the fracturing and gas bearing zones where the operator expected them.