Empyrean Energy has provided an update on operations at the Sugarloaf Project within the Sugarkane Gas & Condensate Field, Texas.

The May-1H well has been fracture stimulated and is currently flowing to sales, and it is the first well to be drilled, stimulated and produced on a post farmout basis within the Sugarloaf Project.

The well was stimulated with 16 stages across approximately 4,800ft of horizontal section.

The fracture stimulation of the Luna-1H well is complete and this well was stimulated with 14 stages across just over 5,000ft of horizontal section.

In a similar fashion to the May-1H well, the choke setting on the Luna-1H well is being gradually increased over a period of many days as part of a process of optimizing drawdown on the wells, the company said.

The fracture stimulation of the Direct Assets-1H well has commenced using a similar design to that utilized in other recent wells.

The remedial operations on the Kowalik-1R well have been carried out and the isolation plugs have been removed from the well, and production tubing will now be installed before the well is flowed back to sales.

According to the company, operations are now underway at the Gilley-1H well.

Empyrean director Tom Kelly said that the production sales at the May-1H well represent a significant new milestone for Empyrean as these sales are accumulating the company’s first post farmout revenue from the Sugarloaf Project.

"In a relatively short period of time, a number of additional wells will come on to production to add to this revenue," Kelly said.