Business
Acquisition
Acquisition.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n Empyrean Energy PLC\n06 April 2006\n\n\n\n Empyrean Energy PLC\n ('Empyrean' or the 'Company'; Ticker: (EME))\n Farm-in Agreement for Gas Exploration - Texas, USA\n\n\n • Acquisition of 6% working interest in the Sugarloaf Hosston Prospect,\n South Texas\n • Multi trillion cubic feet gas target - 0.97-2.3 TCF\n • Farm-in agreement with Texas Crude Energy, Inc (Operators)\n • Drilling scheduled for Q3 2006\n\n\nAIM quoted Empyrean today announces that it will participate in the Sugarloaf\nHosston Prospect, South Texas, USA ('the Project') following a farm-in agreement\nwith local Houston based operator/explorer Texas Crude Energy, Inc.\n\nThe Sugarloaf Hosston Prospect (Cretaceous) is a 20,000 acre 4-way closure with\nmulti trillion cubic feet ('TCF') gas potential in one of the most prolific\nhydrocarbon provinces in the world. An independent expert has estimated that the\nSugarloaf Hosston Prospect could contain a P50 (probability 50%) reserve of 0.97\nTCF gas, with the P10 assessment estimated at 2.3 TCF gas.\n\nTexas Crude Energy will be the operator of the project and plan to have an\ninitial well drilled to a total depth of 21,000 feet commencing during Q3 2006.\nThe large anticlinal structure is well defined by some 24 lines of re-processed\n2D seismic data. The target Hosston Sands are in the lower cretaceous and are\npredicted to occur at 17,000 feet. Drilling is estimated to take 110 days to\nthis depth.\n\nThe terms of the agreement with Texas Crude Energy are for Empyrean to pay 7.5%\nof the costs of the initial well (including lease costs and operating expenses)\nuntil payout after which Empyrean's working interest reverts to 6.0% (4.26%\nNRI). The initial well is expected to cost a total of US$6 million with lease\ncosts and completion costs a further US$4 million. Empyrean's share of this\nexpenditure is estimated at US$750,000.\n\nCommenting today Tom Kelly, Executive Director states 'The participation in the\nSugarloaf Hosston Prospect allows Empyrean exposure to a potentially massive gas\nresource. The profile of this prospect is in line with our strategy to develop\nhigh value energy projects in politically stable countries with high levels of\ninfrastructure and healthy domestic energy markets. We look forward to seeing\nresults from the Project later this year once drilling commences in Q3 of 2006....