19th Nov 2009 07:00
19th November 2009
Empyrean Energy PLC
('Empyrean' or the 'Company', (EME))
Sugarloaf Project, Block B, onshore Texas, USA.
Empyrean Energy Plc is pleased to provide the market with an update on preparations within the Sugarloaf Area of Mutual Interest ("AMI") for the first phase of farm-in work scope as outlined in the recent announcement dated 6th October 2009.
The detailed planning for the fracture stimulation of each of the three horizontal wells has now been completed. The operator of the Sugarloaf Project, Texas Crude Energy Inc ("TCEI"), intends to carry out 'multi -staged' fracture stimulations along the horizontal section of each of the Kennedy-1H, Kowalik-1H and Weston-1H wells. Each stage will be individually hydraulically stimulated using a design that has proved effective elsewhere in the play, that stage is then isolated and the process repeated further up the liner. At Kowalik-1H, where it was not possible to recover the slotted liner, the slotted section will be stimulated with a single larger treatment and the conventional solid section of the liner will be treated in a similar fashion to the other two wells. Once treated, the wells will be brought on line to sales.
Each well has now been prepared with the production tubing being pulled at Kennedy -1H and Kowalik-1H. The horizontal liners of all three wells are presently being washed out and clean water left behind ahead of the stimulations.
At Weston-1H, production facilities are being installed, including a pipeline connection to the Kennedy-1H location to utilise the existing tie-in to a major export gas pipeline.
Progress to date and the availability of equipment indicates that the likely start of the fracture operations will be during December. Each stimulation will take approximately 10 - 14 days. A further announcement will be made when these operations commence.
Following the successful farm-out to Hilcorp Energy, Empyrean retains the following working interests ("WI") in Block B wells:
Kennedy-1H 9% WI
Kowalik-1H 10.2% WI
Weston-1H 3% WI
Future Block B wells 3% WI
Contact:
Tom Kelly Empyrean Energy Plc Tel: +618 93216988
Nominated Adviser and Broker:
Jerry Keen Astaire Securities Plc Tel: +44 (0) 20 7448 4400
Shane Gallwey Astaire Securities Plc Tel: +44 (0) 20 7448 4400
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