Business
Sugarloaf Project, ("Sugarlo
Sugarloaf Project, ("Sugarlo.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n RNS Number : 9444W Empyrean Energy PLC 29 November 2010 \n\n \n29 November 2010\n \nEmpyrean Energy PLC\n(\"Empyrean\" or the \"Company\"; Ticker (EME))\n \nSugarloaf Project, (\"Sugarloaf\"), Block B, Texas USA\n \n \nEmpyrean is pleased to provide the following update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.\n \nLuna-1H (3% WI)\n \nThe Luna-1H well has been fracture stimulated and has been unloaded to sales, with the temporary well test equipment having now been released. \nThis well is the second well to be drilled, stimulated and produced on a post farmout basis within the Sugarloaf Project and Empyrean participates in sales on a post farm out WI basis of three percent (3%).\nThe well was stimulated with 14 stages across approximately 5,000 ft of horizontal section. The well commenced flow back on the 16th November 2010 and was gradually unloaded to sales. \nAs reported last in the previous Sugarloaf announcement, our wells continue to be flowed with highly restricted chokes. This methodology, which has been applied to the Luna-1H well, has been designed to limit draw down on the reservoir in order to improve decline curves and Estimated Ultimate Recoveries (\"EUR\"). In addition, due to the number of additional wells now on production and the forward plan into next year, the operator Hilcorp Energy ('Hilcorp') is installing a new dedicated wet gas pipeline and centralized processing facilities with sufficient capacity to meet the anticipated increases in produced volumes for the next phase of development. This new infrastructure is expected to be commissioned around the end of the year and there may be some production limitations until this time. The restricted choke settings makes comparisons to Initial Production (\"IP\") results from earlier wells difficult to reconcile. \nThe following data is a recently recorded daily production rate from the Luna-1H well:\n\n\n\n\n\n\n\nGas Production Rate (mscf/d)\n\n\nCondensate Production Rate (bbls/d)\n\n\nAverage Daily Equivalent Gas Rate (mscfe/d)*\n\n\nAverage Daily Equivalent Oil Rate (boe/d)*\n\n\n\n\nLuna #1H\n\n\n1,859\n\n\n690\n\n\n10,604\n\n\n884\n\n\n\n\n \n*The equivalent rates have been calculated to reflect value ...