Business
Annual Report and Accounts
Annual Report and Accounts.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n RNS Number : 8596V Empyrean Energy PLC 03 June 2008 \n \n\n\nEmpyrean Energy PLC \n('Empyrean' or the 'Company'; Ticker: (EME))\n\nFinal Results\nFor the period 1 April 2007 to 31 March 2008\n \n\nChairman's Statement\n\nIt is with pleasure that I am able to report that Empyrean Energy Plc ('Empyrean' or 'the Company') is entering a new and exciting phase in its development. Since the last AGM held in May 2007, we have continued to concentrate on projects within politically stable regions. \n\nA major discovery was confirmed in April 2008 at the Sugarloaf Project in Texas, USA. Empyrean is part of this discovery and has been able to increase its interest in this project where further upside exists. Appraisal wells continue to reduce uncertainty, and two deeper potential pay zones provide exceptional upside potential should flow rates respond well to the completion techniques presently being implemented by the two operators.\n\nThe confirmed discovery at the TCEI JV Block A-3 well is supported by the unexpected flow at the TCEI JV Block A-1 well, prior to it being fracture stimulated. Since these initial flows, the TCEI JV Block A-1 well has been fracture stimulated successfully resulting in spectacular commercial flow rates. There are three further wells at the Sugarloaf Project, which are drilled to total depth, but are yet to be tested. The flows from the Block A wells have come from the shallowest of three potential pay zones, and the two deeper zones could provide significant upside. The operator currently expects a further 39 wells to be drilled on Empyrean's acreage based on the uppermost productive zone alone, resulting in a 44 well development case. Empyrean's net recoverable production is estimated to be at least 32.5 bcfe ('billions cubic feet equivalent'), valued (at today's oil and gas prices) at circa US$325m.\n\nIn addition to this success, the 6 well programme at the Margarita Project has resulted in four discovery wells being completed for commercial production, and three of those wells remain in production today providing useful cashflow. \n\nEmpyrean also retains a 38.5% inte...