Companies: EME   

Volatile AIM performer Empyrean Energy has found gas in Block A-3 well at its Sugarloaf prospect in Texas.

The company says the well operator has reported gas shows over a 185-foot interval at a depth of about 12,000 feet, which is the main objective. Empyrean adds that gas recordings rose to a maximum of 350 units, which is 'approximately ten times the background gas readings immediately prior to the shows'.

Director Tom Kelly comments, ‘We now have a total of five wells in this discovery area that have encountered gas while drilling. We look forward to what promises to be an exciting testing phase for the company'.

Floated two years ago at 35p, shares in Empyrean, which has assets in Germany as well as the USA, hit 164.5p in early 2006 before falling back again. They are 6p up today at 42.5p, valuing the company at £21.5 million, and could make up more lost ground following the Sugarloaf find.

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