Each stage will be individually hydraulically stimulated using a design that has proved effective elsewhere in the play, that stage is then isolated and the process repeated further up the liner. At Kowalik-1H, where it was not possible to recover the slotted liner, the slotted section will be stimulated with a single larger treatment and the conventional solid section of the liner will be treated in a similar fashion to the other two wells. Once treated, the wells will be brought on line to sales.

Each well has now been prepared with the production tubing being pulled at Kennedy -1H and Kowalik-1H. The horizontal liners of all three wells are presently being washed out and clean water left behind ahead of the stimulations.

At Weston-1H, production facilities are being installed, including a pipeline connection to the Kennedy-1H location to utilize the existing tie-in to a major export gas pipeline.

Progress to date and the availability of equipment indicates that the likely start of the fracture operations will be during December 2009. Each stimulation will take approximately 10 – 14 days. A further announcement will be made when these operations commence.

Following the successful farm-out to Hilcorp Energy, Empyrean Energy retains the following working interests (WI) in Block B wells:

Kennedy-1H – 9% WI, Kowalik-1H – 10.2% WI, Weston-1H 3% WI, Future Block B wells – 3% WI.