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Empyrean Energy reports drilling underway on second new well at Sugarloaf

03 March 2010

Empyrean Energy this morning confirmed that the second of two new wells had been spudded on its Sugarloaf Project on Block B in Texas.

Sugarloaf operator Hilcorp Energy began drilling the Morgan-1H well last Friday, 26 February approximately 5km north-west of the first well in the drilling programme, Easley-1H.

The well design includes a vertical pilot hole prior to drilling a horizontal section that will access both the Austin Chalk and Eagle Ford horizons following fracture stimulation.

Hilcorp is drilling three new wells on the Sugarloaf acreage as part of a farm in agreement with previous field operator Texas Crude Energy. The Easley-1H well is currently being drilled ahead at a depth of 15,535 ft with approximately 2,800 ft of horizontal section now having been drilled within the reservoir. The company is understood to have seen elevated gas readings since penetrating the reservoir.

As part of Hilcorp’s involvement at Sugarloaf, it is also completing workover operations on three existing production wells. Having completed ‘fraccing’ work on the Kennedy-1H and Weston-1H wells, both are continuing to produce to sales in line with expectations. Empyrean said that once production tubing was installed in both wells it would be able to report stable production rates to the market.






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