Good News at the 'Sugarkane' is a month to late for EKAO holders...

Good News at the 'Sugarkane' is a month to late for EKAO holders and Eureka's coffers.

RNS Number:2374S
Empyrean Energy PLC
14 April 2008



Empyrean Energy PLC
("Empyrean" or the "Company"; Ticker: (EME))

Sugarloaf Block A, Texas USA
----------------------------

* Empyrean confirms significant discovery at the Sugarloaf Project area.
* First well tested from five drilled to date (Sugarloaf Blocks A & B)
flows commercial quantities of gas and condensate on test.
* Four further wells which have all encountered hydrocarbon shows
whilst drilling are yet to be tested.

Empyrean, the AIM listed energy company with exploration and production assets in Germany and USA today announces the following initial test results from its TCEI JV Block A-3 well on Block A at the Sugarloaf Project in Texas:

Initial flow testing of the TCEI JV Block A-3 well has recorded flow rates using 12/64" choke close to 1.9 mmcfgpd (million cubic feet gas per day) with over 460 bcpd (barrels of condensate per day) and 75 bwpd (barrels of water per day - normal under these circumstances) with a FTP (Flow Tubing Pressure) of almost 4000 psi.
On the present day prices for condensate and gas whilst converting the condensate to a gas equivalent, the equivalent gas flow rate exceeds (using a 10:1 conversion) 6.5 mmcfepd (million cubic feet gas equivalent per day).

This open hole test has been conducted without stimulation and is testing the vertical pay section in the upper part of the Cretaceous Austin Chalk reported in our announcement of 15 November 2007 (peak readings 350 units - 10 times background levels). The drilling of this well ceased 2,700 feet short of the proposed length as significant gas shows and flares whilst drilling were encountered prompting the operator to prepare the well for an open hole flow test, to see if the well would flow without stimulation, as reported in our announcement of 11 January 2008.

Much work is now being conducted to correlate these early results with that of a similar field in the region to help establish best practice for completions moving forward on this substantial and significant gas condensate discovery. The Brookeland Field in Tyler County is one such field and early comparisons are very favorable. A typical well drilled by one of the operators in the Brookeland Field
has an approximate equivalent rate of 1.4 mmcfepd per thousand feet of horizontal (comparing favorably to Empyrean's TCEI JV Block A-3 well at approximately 2.4 mmcfepd per thousand feet of horizontal).
The typical well for one operator at the Brookeland Field has approximately 12,000 feet of horizontal with average initial rates of over 16 mmcfepd.

Commenting today, Empyrean Executive Director Tom Kelly said "The importance of this comparison is that Empyrean's TCEI JV Block A-3 well has approximately 2800 feet of horizontal and a much higher equivalent production rate per thousand feet of horizontal well indicating that at the Sugarloaf Project there is every chance that
better production rates may be able to be gained by increasing the length of the horizontal portion of the wells."
After some 20 hours of flow testing the TCEI JV Block A-3 well has been shut in to conduct pressure measurements and other reservoir data measurements as part of the normal engineering procedures to measure the parameters of this discovery. Further testing will be required to confirm the extent of the reservoir and the field deliverability. At this early stage there is no clear indication on the time it will take to determine these important factors.

Empyrean has a 7.5 % working interest in the TCEI JV Block A-3 well and further announcements will follow as significant developments come to hand.

Tom Kelly added "This is terrific news for Empyrean and our
shareholders. The initial recorded flow rates are excellent using a choke that was not fully opened and the pressure is high. Much is being learnt from this well and the comparison with Brookeland that should see many of our future wells flowing even better than this one. After a very patient wait Empyrean's shareholders are being
rewarded with being part of a major discovery. This is the first flow test from 5 drilled wells that have all encountered hydrocarbon shows whilst drilling on this project's extended area. We still have 4 already drilled wells to test which is very exciting. More importantly, this first well tested has confirmed a significant gas/
condensate discovery, and with oil fetching over US$100 a barrel the economics are even more attractive."

The information contained in this announcement was completed and reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.