Empyrean Energy has provided the following update of operations on Block B at the Sugarloaf Project:

Morgan -1H Operations on this well are now complete and the rig has demobilized from the location. The well was drilled to a total depth of 17,015 ft and production casing has now been run and cemented across approximately 5,000 ft of reservoir section. This well is now ready for fracture stimulation.

Rancho Grande -1H This well was spudded on March 25, 2010 and the most recent operation has been to run and cement the surface casing string at a depth of 6,005 ft. Thereafter the well will be drilled vertically to the top of the reservoir before the trajectory is built to horizontal through the reservoir section.

Easley -1H As previously reported this well has had a production casing string run and cemented in place and is waiting on the commencement of fracture stimulation operations. It will then be flowed to sales

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