14/04/2008
Initial testing at the Sugarloaf prospect in Texas has produced commercial quantities of gas, says AIM-quoted Empyrean Energy.
According to Empyrean, the TCEI JV Block A-3 well on the Sugarloaf prospect has shown daily flow rates of nearly 1.9 million cubic feet of gas, with more than 460 barrels of condensate a day. The London-based company has a 7.5 per cent working interest in the well and director Tom Kelly says that ‘this is terrific news for Empyrean and our shareholders’.
Pointing out that TCEI JV Block A-3 is the first of five Sugarloaf wells to be tested, Kelly claims that the test results indicate there is ‘every chance that better production rates may be able to be gained by increasing the length of the horizontal portion of the wells. After a very patient wait, Empyrean’s shareholders are being rewarded with being part of a major discovery’, he claims.
Floated at 35p three years ago, Empyrean shares hit 164.5p in early 2006 before crumbling all the way down to 17.25p earlier this month. They have now rallied to 31p, up 12.5p this morning, valuing the company at £15.7 million, and could rally further if the other wells turn up trumps.
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