2009-07-08-2009-06-01

To buy 10% WI in 40,000 acres in Riverbend project in Tyler, Jasper cos., TX, targeting Austin chalk, Saratoga chalk.

London-based Empyrean Energy Plc (London AIM: EME) plans to acquire a 10% working interest in the Riverbend project in Tyler and Jasper counties, Texas, from Houston-based Krescent Energy Partners II LP in a deal valued at approximately US$2.3 million. The project area involves approximately 40,000 acres under lease or exclusive option and an area of mutual interest totaling 50,000 acres. The main targets are the Austin chalk and Saratoga chalk plays. Additional upside exists in the Wilcox and Yegua sand formations where Krescent has identified three separate prospects. The project comes with access to 60 square miles of Krescent's proprietary 3-D seismic coverage in the project area. Krescent began drilling for the Austin chalk zones in the area in July 2008. Empyrean will earn its 10% interest by reimbursing Krescent for 10% of the land costs for about US$1 million, plus 10% of original cost estimate to drill the Quinn 3-H for about US$1 million and then paying 10% of the cost to re-enter Quinn 3-H and drill and complete the horizontal section for about US$300,000. Empyrean will then pay 13.33% of costs to earn a 10% interest on the second, third and optional fourth well before paying 10% of costs thereafter on those wells and any future wells drilled. Empyrean executive director Tom Kelly says, "The attraction of being able to secure a 10% interest in a project of this size during the drilling of the first test well after high pressure gas has already been confirmed is very compelling. This is a 'must do' deal for Empyrean and we look forward to drilling operations re-commencing and updating the market on future results."