Empyrean Energy Plc, the AIM listed condensate and gas exploration and production company focused on the
Eagle Ford Shale, Texas, USA, is pleased to announce that it has increased it's working interest in the Eagle Oil
Pool Development Project ("Project") in the San Joaquin Basin, California, USA to 57.2126%.
The increase in working interest has resulted from previous partner FAR Limited (ASX Code: FAR) deciding to
surrender its interest. FAR Limited has stated the reason for surrendering its interest in the Eagle Oil Pool
Development Project along with another non-core asset is to focus operations and exploration efforts on its
African assets. There is no direct cost associated with the additional working interest other than the nominal costs
of assignment and recording. Empyrean will pay a proportionately higher share (57.2126%) of future joint venture
As previously announced 6 October 2005, an independent expert has estimated that the Eagle Oil Pool
Development Project could contain a P50 (probability 50% unrisked) reserve of 7.1 million barrels of recoverable
oil and 12.3 billion cubic feet of associated gas, with the P10 assessment estimated at 22.7 million barrels of oil
and 22.7 billion cubic feet of associated gas. The Project is a structural-stratigraphic trap play targeting the Eocene
aged Gatchell sands. The Project covers approximately 5,160 gross acres with a discovered yet undeveloped oil
accumulation. The operator of the Project is TSX-V(SXE) and ASX (SXA) listed Strata X Energy, of Denver,
Recent exploration efforts by operators nearby to the Project have targeted other formations including the
Kreyenhagen Shale and Monterey Shale. These exploration efforts are being monitored by Strata X Energy to
determine if targets in addition to the Gatchell sands should be included in future exploration and testing efforts.
The Company currently believes, based on existing results and data, that the Gatchell sands remain the priority
target for future testing with potential for the Monterey Shale to be included as a secondary objective.
Stratigraphic trap plays such as the Eagle Ford Shale play in Texas, within which the Company's Sugarloaf Project
is situated, have become highly sought after in the USA due to modern day advancements in drilling and
completion technology. These advancements have allowed unconventional hydrocarbon plays to achieve highly
valued production from formations that were previously thought to be either too technically difficult or too
expensive to develop.
Strata X Energy has indicated that a vertical well test of the Gatchell sands has merit, subject to the results of
nearby exploration wells. Further discussions need to take place with Strata X Energy before any future
operational plans are finalised. Commenting today, Empyrean CEO, Tom Kelly said "This increased working interest at the Eagle Oil Pool Development Project gives Empyrean greater leverage and flexibility in the project. Given the renewed activity in the San Joaquin Basin we are happy to have been able to add significantly to our working interest in the project at essentially no cost. " The information contained in this announcement was completed and reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.
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