Empyrean provides the following update on operations and production at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

The boe numbers in the above table do not account for any NGLs which are now being stripped from the wet gas production stream. The production totals are generated from data gathered through metering at each wellhead and the NGLs are subsequently stripped from the gas production at a processing facility near Houston. Empyrean conservatively estimates that the NGL stripping process yields 80 - 90 bbls of NGLs per mmscf and results in a gas volume shrinkage of approximately 20%.

Operations

The following operations have taken place since the last update.

Davenport #1H (1.40% WI) - Production commenced from the Davenport #1H well on 20th June 2011 and Empyrean will provide an update on production in due course.

Best Huth #1H (0.58% WI) - Production commenced from the Best Huth #1H well on 4th July 2011 and Empyrean will provide an update on production in due course.

Jordan #1H (3.0% WI) - Production commenced from the Jordan #1H well on 25th June 2011 and Empyrean will provide an update on production in due course.

Pfiefer #1H (1.9% WI) - The Pfiefer #1H well is located across the border of the Longhorn and Sugarloaf AMIs. The well was spudded on 13th June 2011 and reached a TD of 16,851ft on 5th July 2011. This well has now been cased and will be fracture stimulated in due course.

Turnbull #6H (1.02% WI) - the Turnbull #5H well reached a Total Depth of 16,797ft on 16th June 2011 and has now been successfully cased. The fracture stimulation of a total of 17 stages was completed on 10th July 2011. Empyrean will provide an update on production in due course.

Best Fenner #1H (3.0% WI) - the fracture stimulation of the Best Fenner #1H well was completed with 17 stages. Operational difficulties were encountered when running tubing into this well, once resolved the well will be unloaded and Empyrean will provide an update on production in due course.

Brysch Jonas #1H (3.0% WI) - The Brysch Jonas #1H well was spudded on the 27th June and has now reached a total depth of 18,540ft, preparations are underway to run casing.

Yosko Borgfield #1H (1.51% WI) - The Yosko Borgfield #1H well was spudded on the 11th July and is currently drilling ahead at a measured depth of 11.006 feet.

Tags: Empyrean Energy