(EME) Empyrean Energy

Empyrean Energy PLC

("Empyrean", "EME" or the "Company"; Ticker (EME))

Extension of Convertible Loan Facility

3 January 2012

Further to the announcement of 1 December 2011 Empyrean announces that it has extended the remaining £454,000 of convertible loan notes issued under a facility with Apnea Holdings Pty Ltd ("Apnea") originally announced on 22 October 2010. The Company has agreed to extend these remaining convertible loan notes, which had not been converted to equity by their original maturity date of 31 December 2011, for a further 12 months on the same terms.

These remaining convertible loan notes will now mature on 31 December 2012.

For further information, please contact:

Contact:

Empyrean Energy Plc

Tom Kelly                                                                    Tel: +618 93216988

Shore Capital & Corporate Limited

Anita Ghanekar                                                            Tel: +44 (0) 20 7408 4090

Edward Mansfield

22 December 2011

Empyrean Energy PLC

("Empyrean" or the "Company"; Ticker (EME))

Trading statement

Gross cash received from USA production exceeds prior 6 months

Empyrean is pleased to provide the following update on cash receipts from oil and gas production and sales operations for the last six months:

Cash received from the Company's USA based production assets including the Sugarloaf Project, Hercules Project and Riverbend Project over the last six months (June 2011 through to November 2011) totals US$1,676,388.10 which represents a 55 per cent. increase in revenue over the prior six months cash received update that was released on 3 June 2011.

Generally speaking, the cash received from hydrocarbon sales in any given month relates to production accumulated from approximately two months earlier. That is, there is a lag between production sales and cash received and this varies between projects and also varies according to whether the sales were from oil or from gas.

The Sugarloaf Project is now firmly into a development phase and this upwards trend in revenue is expected to continue as further wells are brought into production.

Contact:

Empyrean Energy Plc

Tom Kelly                                                                    Tel: +618 9388 8041

Shore Capital & Corporate Limited

Anita Ghanekar                                                            Tel: +44 (0) 20 7408 4090

Edward Mansfield

21 December 2011

Empyrean Energy PLC

("Empyrean" or the "Company"; Ticker: (EME))

Sugarloaf Project, ("Sugarloaf"), Block B, Texas USA

Empyrean is pleased to provide the following update on operations at the Sugarloaf Project ("the Project"), an Eagle Ford Shale liquids rich producing field within the Sugarkane Gas & Condensate Field, Texas

Key status points:-

·    As at today's date there are 24 wells on production that Empyrean has an interest in, including 6 farmout wells.

·    Marathon Oil Corporation ("Marathon") has assumed operatorship of the Project as of 1 November 2011.

·    Empyrean has been advised by Former operator, Hilcorp, that the cost recovery mechanism on the farmout pool of 3 new Sugarloaf wells has been repaid and that Empyrean will participate in the revenue from those wells from October.  The payout period has taken considerably longer than the simple cost recovery of well Capex because of the inclusion of additional infrastructure costs in the payout calculation mechanism. This infrastructure has facilitated early field production.

·    Gross total production from the Sugarloaf Project was 230,973 boe in November which comprises 135,064 bbls oil and 34,527 bbls Non Gas Liquids ("NGLs") and 368.3 MMcf gas by volume.  The liquids rich nature of the acreage results in approximately 80% of production being derived from oil and NGL's by volume. Production figures have been influenced by a number of wells being shut in for the installation of production tubing during November; the figures this month do not reflect field production capacity.

Production Data

The following wells have been on production for a period of 30 or 60 days and Empyrean is pleased to provide the market with an update on produced volumes during that period:-

*The equivalent barrels per day production rate has been calculated on a simple 6:1 ratio.

** Note the cumulative production volumes are the actual volumes of oil and rich gas, as recorded at the time, produced during the 1st 30 day period, therefore at times the well may not have been on production for the full 30 day period.  The production rate is the average achieved during the periods when the well was flowing during the 30 day period, the figure is calculated from the rich gas and liquids produced at the wellhead and does not account for subsequent treatment, i.e. NGL yield is not considered in these figures.

Operations

Following the assumption of Operatorship, Marathon advised that it planned a systematic program of tubing installation across the wells in the field.  The majority of the wells have to date produced through 5 ½" production casing and are to have 2 3/8" production tubing  installed with gas lift valves for future purposes.  The smaller bore tubing will help optimise the lift performance of these high liquid content wells.

The following wells have commenced production since the last operational update.

The information contained in this announcement was completed and reviewed by the Technical Director of Empyrean Energy Plc, Mr Frank Brophy BSc (Hons) who has over 40 years experience as a petroleum geologist.

For further information

Empyrean Energy plc 

Tom Kelly

+618 9388 8041

Shore Capital

Anita Ghanekar

Edward Mansfield

+44 (0) 207 408 4090