Empyrean Energy, the oil and gas development company with interests in China, Indonesia and the United States, provides the following general update on operaons.

Duyung PSC, Indonesia

Further to the announcement on 14 April 2020 regarding the upgrade of internal resource esmates for the Mako gas field, which forms part of the Duyung PSC in the West Natuna basin, offshore Indonesia (the "Mako Gas Field"), the Company reports that further significant progress has been made with the operator of the project, Conrad Petroleum Limited ("Conrad"), successfully being able to present all aspects of the project to Gaffney Cline and Associates ("GCA"). This progress has been achieved in spite of the challenges presented by travel restricons and other COVID-19 related measures. The Company ancipates that there are now no major impediments to GCA being able to complete its update of resources for the Mako Gas Field over the coming weeks. Empyrean will provide a summary of the GCA findings in due course when the report becomes available.

Block 29/11, China

The Company is also pleased to report that excellent progress has been made on the seismic inversion work on which the Company has engaged China Offshore Services Limited ("COSL") to assist with technical work and data processing and which is expected to beer define the reservoir rocks at the Company's two primary prospects, Jade and Topaz. This technical work and data processing are now complete and the Company is in the process of analysing the resulng data and ancipates being in a posion to update shareholders on the results of this work in the next few weeks.

Open Offer

The Company announced on 22 April 2020 that it had launched an Open Offer to qualifying shareholders to apply for up to 57,417,375 new ordinary shares at 3.5p per share on the basis of 1 new share for every 8 exisng shares already held on the relevant date (the "Open Offer"). If fully taken up, the Open Offer will raise gross proceeds of £2.01 million. The Open Offer also has an excess applicaon facility whereby shareholders can apply for more than their entlement if they have already taken up their full entlement.

In determining the rao for, and total size of, the Open Offer, the Company has taken into account that some of the Company's exisng larger shareholders, including certain Directors and senior managers of the Company, had already subscribed pursuant to the subscripon at 3.5p announced on 14 April 2020. The Company believes that it is appropriate that shareholders be given the opportunity through the Open Offer to subscribe for shares at the same price (3.5p). All support from exisng shareholders is welcome.

The Company encourages those shareholders who wish to parcipate in the Open Offer and who hold their exisng shares through a nominee or in their ISA or SIPP to make contact with their investment administrators to alert them of their intenon to take up their entlements under the Open Offer or to contact the Company directly via jonathanwhyte@empyreanenergy.com.

Corporate

The Company connues to acvely review its cost base to ensure it is well posioned in the context of the current COVID-19 and oil price related turmoil. The Company reduced director salaries and fees by approximately one-third in FY2017 following successful compleon of the sale of its interest in the Sugarloaf AMI in 2016 and subsequent return of capital to shareholders (7.9p per share) in order to beer reflect the Company's focus on new exploraon and appraisal projects rather than producon. The Company maintains a keen focus on costs and connues to operate with general and administrave costs (FY2019: US$0.973 million) below many of its AIM-quoted peers and will connue to ensure that it is appropriate and compeve.

The aggregate holdings of all Directors and senior managers currently represent c.27% of the current issued share capital of the Company. Parcipaon in equity placements and the exercise of opons by those individuals has resulted in c.£1.7 million being invested in the Company by board and senior management since the beginning of FY2018, c.£1.5 million of which has been invested by Empyrean CEO, Tom Kelly. No shares have been sold by Directors or senior management during this me and this connued level of support, commitment and funding strongly aligns the interests of its Directors and senior management with those of shareholders.

Empyrean CEO, Tom Kelly, stated:
"We look forward to Gaffney Cline and Associates further updang its view on resources at the Mako Gas Field. In China, our work connues to yield results and we look forward to updang shareholders on the results of the Seismic Inversion Project work in the coming weeks. As a Board we connue to review the Company's cost base and make appropriate adjustments to ensure that we remain compeve in the current environment."

KeyFacts Energy: Empyrean China country profile