http://emerald-energy-een.blogspot.com/


I decided to start this thread due to the lack of interest via the other thread?
Today EEN with its partner GPX released what can only be described as outstanding news, a 3rd appraisal well in a field couple of kms across flowed 3420bo on a small choke, unaided and they still have not found the limits of this field. Reserves will released in the next 3 weeks and could go as high as 100mbo(speculative).
The market has yet to digest this latest news and imo the SP is still in the bargain range?

http://www.emeraldenergy.com
http://www.investegate.co.uk/Article.aspx?id=200812220700095529K
http://www.investegate.co.uk/Article.aspx?id=200901260700092060M
http://www.emeraldenergy.com/documents/20090126EENInvestorPresentation.pdf/
http://www.investegate.co.uk/Article.aspx?id=200902110700131142N
http://www.emeraldenergy.com/documents/EEN2008Results.pdf
http://www.investegate.co.uk/Article.aspx?id=200905060700127309R
http://www.emeraldenergy.com/documents/EENInvestorPrentation/May2009.pdf

cyril

10000 barrels per day ?, just een, hope so, but very optimistic niceonecyril.

No, the the field total of which 5000bopd would be attributed to EEN?If we could get an average of say 2000bopd per well, 10,000 is realistic.
Also this Block26 is hugh and we have i believe 30 identified targets of which one more exploration well is required this year.
cyril

On reading around what i find interesting, is that some of the better and more knowledgable investors bought into EEN on yesterdays news. These are some of the most experianced oilers around and imo gives a big thumbs up to the latest set of results.
cyril

niceonecyril

Emerald own 50% Off block 26.
Gulfsands own %50 Off block 26

Participating Interests
Emerald Energy 50%
Gulfsands Petroleum 50% (operator)

http://www.emeraldenergy.com/documents/20071024UpdateOctober2007Final.pdf

If you're correct Niceonecyril about the 10000 barrels per day (though I have serious doubts) at the end of the year then this company should add at least a pound in value, perhaps more.

Again working from memory i was on the understanding that the Syrian Petrolium
Company owned 50%? Have tried EEN web site only to find it busy,so i refer you back to,
http://www.investegate.co.uk/Article.aspx?id=200511141540131013U

Information on Block 26
4th paragraph. If my interepation is wrong or things have changed,
all the better. Could you give me your thoughts on the above.
cyril
PS I think i have it now, its 50% of the overseeing contractor for the purpose of the 12,5% royalty.I knew their was a reference to 50% somewhere, i've a long time
out of EEN but had it on my watchlist, bought in prior to christmas at 188p.
I will address my previous posts, and thanks for putting me right.

http://www.oilbarrel.com
You need to click on the Gulfsands Pet (its partner) article.
cyril

niceonecyril

EEN pay thier own 12.5% royalty tax on their share of oil.
Syria: Block 26 Economics
slide 6
Participating Interests
Emerald Energy 50%
Gulfsands Petroleum 50% (operator)
Royalty 12.5% of gross oil production
Cost Oil 50% gross production less royalty
Profit Oil Contractor 35%/SPC 65% up to 25,000 bopd, sliding scale at higher production rates
Bonuses
$2m payable on reaching 25kbopd
$5m payable on reaching 50kbopd
Taxes
SPC pays Contractor income taxes from SPC share of profit oil
Net Profit Interest
2.5% NPI and production bonus of up to $0.5m payable to 3rd party

http://www.emeraldenergy.com/documents/20071024UpdateOctober2007Final.pdf

The above from Emerald Energy 24 Oct 2007 Investor Presentation Update October 2007 - PDF(947

look in Investor Publications

Thanks DFGO i think i've got it. I've been on the GPX site and read their presentations,very impressive. I believe i mixed up Syria with Colombia,this old age doesn't come alone.
cyril

Bizarre, this stock has had the best drilling results since Christmas and yet today it's down, there should be some news from Colombia soon.

I think that over the last 7 days EEN have held their own(or nearly)and in todays
market thats no mean feat.So i feel a little patience is needed as i feel this share is close to fulfilling it promise.
cyril

this as been posted on ADXFN but no source given

Emerald Energy could announce some highly significant appraisal and development news concerning its 50% owned Khubert East discovery in Block 26 in north-eastern Syria. The discovery was reported last May 12 kms south-west of the Souedieh field, the largest in the country. Subsequently, two appraisal wells have been drilled which have both yielded positive results. At the beginning of January, the operator Gulfsands Petroleum along with Emerald reported the completion of drilling at the Khubert-3 appraisal well. Drilling encountered the same massive formation reservoir as KHE-1 and 2. The reservoir properties are similar or slightly better than the earlier wells. Production tests demonstrated high flow rates averaging 3,420 b/d with 206,000 cubic feet per day of gas through a " choke. The oil quality is pretty good at 26 API.
The information from the three wells is currently being independently assessed by RPS. The findings in terms of reserves and the Khubert East development plan are scheduled to be reported imminently. We believe there is a distinct possibility that the Khubert East field could contain 2P reserves of at least 100m barrels. The field is close to infrastructure and could be on-stream by late 2008. Following a 3D seismic survey, Gulfsands and Emerald are planning at least one exploration well on Khubert East this year.

Outside of Syria, Emerald Energy has some significant production assets and exploration acreage in Colombia. Production in the first half of 2007 averaged 3,661 b/d gross, from five fields in the Llanos and Lower and Upper Magdalena Valley basins. Full year production should be similar on a gross basis and perhaps 2,500 b/d on a net basis. Emeralds exploration activities in Colombia are focused on four blocks awarded over the past 18 months or so by ANH, the Colombian hydrocarbons regulatory body. The blocks located in the Llanos, Caguan and Putumayo basins are estimated by Emerald to contain 40m barrels on an unrisked basis based on the prospects and leads identified. An exploration programme is underway with the objective of exploring the potential in the four blocks. Further development drilling is also under consideration in the Gigante field in the Upper Magdalena Valley following a seismic study in 2007. Gigante is Emeralds largest field in Colombia.

Confirmation of a sizeable Khurbet East oilfield would clearly be a company changing event for Emerald Energy. The stock has maintained a firm trend in recent months but sentiment has not become too exuberant ahead of an announcement regarding Khurbet. At the current price of around 195p/share, the market capitalisation of 115m can largely be justified by the existing asset base and cash flow in Colombia. The stock sells on 8/barrel of 2P reserves and a cash flow multiple of around 4x. The addition of 50m barrels (50% of Khurbet East) of easily exploitable reserves in Syria could comfortably be worth 150m or more than twice the current market capitalisation.

Sounds like a summing up by a knowledgable investor to me, rather than qualified
analysis? Shows the potential for EEN to increase its M/Capital.
cyril

I decided to top up this am, as i believe the news which is due shortly will be
positive and give the SP a deserved boost?
cyril

niceonecyril
good luck with your EEN investment I've been in since 1998.

post DFGO - 25 Jan 2008 08:15 - 22 of 24 came from

http://www.equitygrowth.co.uk/company-results/results.php

You need to register with equitygrowth (its free) for the link to work.

DFGO, Cheers, likewise, will register and see what it has?. Checked EEN out with selftrade, 1 analyist (only) rates it buy with a target of 385p.
cyril

Well rattle me bolts !, an increase towards end of play, I also topped up today, just hoping no problems in Colombia.

Could be a breakout coming, possible jump up to a 240p or a 250p base level (well overdue), (as long as no bad news from Colombia), new drilling news has to be coming from that part of the world soon ...!

RF, hopefully reserve update very soon? Take a look at CDN great RNS this am and
market slow to react.
cyril

Thanks niceonecyril, I will have a look.