Empyrean Energy has issued an update on the Sugarloaf Project, Block B, onshore Texas.

Kowalik-1H - Fracture Stimulation Program

Following the decision to tie back the liner at Kowalik-1H, having observed an anomalous pressure drop at the end of the main fracture stimulation stage, a rig was mobilized to the wellsite to carry out the necessary work. During one of the final stages of this work, when cement had been circulated into the annulus of the tie back string, a section of slim drill pipe being used as a running string for the tie back string parted some 700ft below surface.

The initial fishing activities have so far recovered tubing down to a depth of 8,150ft but in light of the other activities commencing within the Sugarloaf AMI, it has been decided to suspend operations on Kowalik-1H so that further evaluation and planning can take place before re-entering the well.

The workover rig is presently being demobilized from the location. This will lead to a further delay before Kowalik-1H can be prepared for flow testing following the fracture stimulation carried out on 28 December 2009.

Easley-1H - Spud Date for new Horizontal Well

Adelphi has been advised by the Operator, Texas Crude Energy Inc ("TCEI"), that the Patterson #150 drilling rig commenced mobilization to the Easley-1H rig site on Thursday, 14 January 2010. It is expected that the well will be spudded early in the week beginning 18 January 2010. Easley-1H is the first new well to be drilled under the farm-in agreement with Hilcorp Energy within the Sugarloaf AMI.

Tags: Empyrean Energy