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

The following wells have commenced production since the last operational update. Empyrean will provide further details when the wells have achieved 30 and 60 day production milestones.

Brysch Jonas #1H (3.0% WI) - The Brysch Jonas #1H well went into production on 10 August 2011.

Yosko Borgfield #1H (1.51% WI) - The Yosko Borgfield #1H well went into production on 14 August 2011.

In addition the following operations have taken place:

Holland Brown #1H (3.0% WI) - The well has been spudded and drilling operations are underway.

Holland Opiela #1H (0.35% WI) - The well has been drilled to a total depth of 16,847 ft. Casing has been run and is presently being cemented in place.

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