PROJECTS: EAGLE OIL POOL DEVELOPMENT, CALIFORNIA USA 
(EME Interest 38.5%)

Empyrean Energy Plc has secured a farm-in agreement with ASX-listed Victoria Petroleum NL to earn a 38.5% working interest in the Eagle Oil Pool Development Project in the San Joaquin Basin California.

Eagle North-1, an appraisal well of the Eagle Oil Pool, was spudded on 12 January 2006. It was located 366 metres to the northwest of the Mary Bellocchi-1 vertical well which tested oil at rates of up to 223 barrels of oil per day and gas at rates of 0.7 million cubic feet of gas per day from a 12 metre interval in the lower Gatchell oil sands.

Oil shows and fluorescence were encountered whilst drilling and an effort was made to perforate a zone for production testing. This perforation attempt failed and unfortunately the perforating guns were unable to be recovered from the well. Although the presence of oil was confirmed while drilling, the time lost in side track and unsuccessful fishing operations forced the eventual suspension of the well in October 2006 as the partners agreed that further monies would be better spent on a new sidetrack or possibly a new vertical/ and or horizontal well.

Since mid 2007, the operator Victoria Petroleum NL has been attempting to reduce its interest in the project and find a replacement for its operatorship, which has been the result of an internal corporate decision, and in no way reflects a change in perception of the prospectivity of the Eagle Oil Pool project.

It still has not been decided by partners whether the Eagle North-1 will be re-entered and sidetracked to test the 177m of Lower Mary Bellocchi Gatchell oil sand or whether a new well should be drilled in close vicinity.

It is currently Empyrean's intention to participate in the drilling of a new well.

PARTNER

• Victoria Petroleum NL

Australia based Victoria Petroleum NL (ASX-listed), a wholly owned subsidiary of Victoria Petroleum USA, Inc., is the operator for the Eagle North-1 well.

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