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


Interim Results for the six months ended 30 September 2006


Empyrean today announces its interim results for the period ended 30 September
2006. Please find below the Chairman's statement and the interim accounts.



CHAIRMAN'S STATEMENT


I am pleased to announce that in the period since our Annual Report was
published, Empyrean has made significant progress both with its drilling
programme at Sugarloaf and the continued identification of developing energy
resources, such as Margarita, in regions of low political risk.


Having only commenced drilling during the period, testing is planned at the
Sugarloaf Hosston Prospect following the interpretation of wireline logs which
identified gas saturated sands that may result in a potential reservoir.


To complement its existing portfolio of projects, the Company entered into an
agreement on 5 December 2006 to farmin to Project Margarita, located in Texas,
USA. Drilling on this project commenced earlier this month.


Preparations are also underway at the Glantal Prospect to implement a seismic
programme in Q1 2007, while further testing is required at the Eagle Oil Pool
Development Prospect.


Sugarloaf Hosston - Texas, USA

During the period, drilling commenced at the Sugarloaf-1 well located in the
onshore Gulf Coast Basin in Texas, reaching a total depth of 6,371 metres.
Wireline logs were successfully run over the open hole section of the
Sugarloaf-1 well between 5,182 metres and total depth. A five inch production
liner has since successfully set and cemented the Sugarloaf-1 well at 6,034
metres and was tied back into the casing at 5,183 metres.

Interpretation of wireline logs over the primary target indicates that an
aggregate of 27.4 metres of potential reservoir are gas saturated and may be
capable of commercial production after fracture stimulation.

Preparation is now taking place for the fracture stimulation and testing. The
market will be informed of timings as soon as Empyrean is advised by the
operator.


Empyrean is earning a 7.5% interest until payout, and the interest reverts to a
6% working interest thereafter.


Project Margarita - Texas, USA

On 5 December 2006, Empyrean announced that it had entered into an agreement
with the Wandoo Joint Venture (Sun Resources NL - Victoria Petroleum NL -
Wandoo Energy LLC), to earn a 44% interest in the Project Margarita which is
located along the Gulf Coast in Texas, USA. Drilling commenced earlier this
month at the El Viejito Prospect.


Preliminary work completed by the Joint Venture included interpretation of 530
square kilometres of 3D seismic. A number of leads have been recognised in the
prospective stratigraphic/structural settings at various depths ranging from
1,000 metres to 4,000 metres. Having refined the shallow leads through reservoir
engineering data from nearby producing analogues, the Wandoo Joint Venture has
concluded that the prospect has a high outcome probability of success on
drilling.


The El Viejito #1 well is the first of six back-to-back shallow wells planned
under the current drilling programme. This programme is a precursor to the
commencement of a drilling programme focused on more substantial prospects at a
greater depth.


Eagle Oil Pool Development Project - California, USA


Victoria Petroleum NL, as operator for the Eagle North-1 well on the Eagle Oil
Pool Development Project located in the San Joaquin Basin in California, is
investigating the alternatives for this project, including the possibility of a
new horizontal completion. The target zone for re-entry and side track will be
the 177 metres of the lower Gatchell oil sands in the horizontal well bore over
the interval from 4,209 metres to 4,386 metres.


Since spudding the well early in the year total depth was reached at 4,219
metres. Wireline evaluations of the targeted Gatchell sands indicated oils
saturation over a 21 metre interval from 4,143 meters to 4,164 metres with
interpreted net oil pay of 13.4 metres. In the opinion of the operator, the
wireline log character was similar to that seen in the Gatchell oil sands that
produced oil at Mary Bellochi-1, 366 metres to the southeast of the Eagle
North-1 well, which have produced at rates up to 223 barrels of oil and 0.7
million cubic feet of gas per day.


The timing of further operations at Eagle are unclear at this stage.


Empyrean has the opportunity to earn a 38.5% interest in the Eagle Oil Pool
Development Project by contributing 55% to the total costs of Eagle North-1.


Glantal Gas Project - Germany


Recent drilling of the Glantal-1 well, located in the Neues Bergland Permit near
Frankfurt was able to establish that the required seal quality lithology was
present on the massive Pfalzer Anticline. Although testing results from the
Glantal-1 well itself were disappointing, further exploration is required to
test all of the anticline adequately.


Recently the operator, Pannonian International Ltd, a wholly-owned subsidiary of
Galaxy Energy Corporation (AMEX: GAX) confirmed that an application to extend
the Neues Bergland Permit had been successful.


Preliminary preparations are now underway to implement a seismic programme over
selected portions of the anticline to enable the prioritisation of drill
targets. The seismic programme is expected to commence Q1 2007.


Empyrean has the opportunity to earn 52% working interest in the Glantal
Prospect.



Results


During the six months to 30 September 2006, the Company made a loss before and
after tax of #263,537. Exploration costs of #1,659,943 for the period have been
capitalised, which relate to both exploration expenditure at the Glantal
Prospect, together with expenditure on the current drilling programmes at both
Eagle Oil and Sugarloaf Hosston.



While Empyrean has accomplished a great deal in a short period of time, the
Company intends to further accelerate its efforts going forward. The management
and employees remain dedicated to growing Empyrean into a substantial player in
the oil and gas sector and creating value for shareholders.


Empyrean looks forward to reporting further on the progress of each project in
both the USA and Germany in the New Year.



Patrick Cross

Chairman

29 December 2006