Business
Increased interest -Sugarloaf
Increased interest -Sugarloaf.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n Empyrean Energy PLC\n10 May 2007\n\n\n\n Empyrean Energy PLC\n\n ('Empyrean' or the 'Company'; Ticker: (EME))\n\n Increased interest in the Sugarloaf Project Area, ('Sugarloaf') Texas USA\n -------------------------------------------------------------------------\n\n• New Agreement signed with Texas Crude Energy Inc ('TCEI') covering a\n sixteen (16) well program over Block A and Block B\n• New working interest on any well in the 16 well program in respect\n of Block A\n• Working Interest increased from 6% to 18% on any wells in the 16 \n well program operated by TCEI in respect of Block B\n\nEmpyrean has entered an Oil & Gas Exploration And Development\nAgreement with TCEI to participate in a new sixteen (16) well\nprogram covering two projects, 'Block A' and 'Block B'.\n\nIn Block A, TCEI has an interest through an Operating Agreement with\na major international oil and gas company ('Block A Operator')(name\nundisclosed for confidentiality purposes and to preserve and protect\ncompetitive advantage). In Block B, TCEI is the operator and\nEmpyrean already has a 6% working interest in this Block via a\nprevious agreement and its participation in the drilling of the\nSugarloaf-1 well.\n\nThe new agreement covers the next sixteen (16) wells to be drilled\non either Block A and / or Block B. The agreement provides for\nEmpyrean to pay 12.5% of costs to first production to earn a working\ninterest of 7.5% in wells drilled on Block A and to pay 20% of costs\nto first production to earn a working interest of 12% in wells\ndrilled on Block B. Empyrean's agreement covering a pre-existing 6%\nworking interest in Block B remains unchanged and is in addition to\nthis new agreement.\n\nThe Block A Operator has drilled a first exploratory test well on\nBlock A and this well is a discovery well which it has been reported\nflowed gas and associated condensate on test. This exploratory test\nwell does not form part of the 16 well program. On Block B, during\nthe drilling of the Sugarloaf-1 well Empyrean previously reported to\nthe market on the 29th September 2006 a 92 feet (28 metres) zone of\npossible gas pay, interpreted from wire-line logs and gas shows in\nCretaceous age carbonates. Preparations are underway for testing to\nbe carried out on these possible pay zones.\n\nIt is estimated that wells in this program will have a to...