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

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.

With todays news plus new drilling in Columbia coming up : possibly looking at a 3 stock here !

RNS Number:2782N
Emerald Energy PLC
05 February 2008

Emerald Energy Plc

5 February 2008


Khurbet East Field Development, Block 26, Syria


Emerald Energy Plc ("Emerald" or the "Company") would like to provide the
following update on activities in Block 26, Syria.

Field Development :

The Syrian Ministry of Oil and Mineral Resources and the Syrian Petroleum
Company have granted approval for commercial development of the Khurbet East
Field.

Field development is intended to commence immediately and establish early
production from the shallow Cretaceous Massive reservoir ("Massive Reservoir")
as soon as an Early Production Facility ("EPF") can be installed at Khurbet East
field.

An EPF capable of processing some 10,000 barrels per day is expected to
be operational by the fourth quarter of 2008 and to be followed by the Full
Field Development ("FFD") facility installation.

Engineering and construction ofthe EPF is scheduled to commence this quarter. Production through the EPF will provide valuable information about reservoir performance that will be used to optimise the design of the FFD facilities.

The Company's share of costs for the first phase of development, consisting of
the construction and installation of the EPF and the drilling of up to three
wells, is planned to be met from the Company's cash flow.

The FFD costs,including future development wells within the Massive Reservoir,
are anticipated to be met from the cash flows expected to be generated
by early production from the field.

The Khurbet East oil field was discovered in the second quarter of 2007 with the
Khurbet East No.1 well which recovered an oil sample from the Massive Reservoir.

Two appraisal wells have since been drilled and tested, with Khurbet East No.2
flowing 710 barrels of oil per day from a 10 metre section and Khurbet East No.3
flowing 3,420 barrels of oil per day from the full section of the Massive
Reservoir.


Reserves :

An independent estimate of the petroleum reserves of the Khurbet East field has
been completed by RPS Energy Ltd ("RPS") of London. The standard used by RPS in
preparing its estimate was the resource definitions jointly set out by the
Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the
American Association of Petroleum Geologists (AAPG) and the Society of Petroleum
Evaluation Engineers (SPEE) in April 2007 in a document entitled "Petroleum
Resources Management System" (PRMS).

The gross life-of-field Proved plus Probable Reserves of oil contained in the
Massive Reservoir are estimated to be 65.6 million barrels as at 31 December
2007.

The Company's has a 50% working interest in the Contractor group.
Under the terms of the Contract, the net entitlement Proved plus Probable Reserves of oil attributable to the Company, based on the oil futures price
of 4th of January 2008, is 11.3 million barrels after the application of royalties
and other terms of the Contract including the apportionment of Cost Recovery Crude Oil and Production Sharing Crude Oil.

The Company's liability for income taxes in Syria, related to the Khurbet East
field, is paid on behalf of the Company out of revenue from the Syrian Petroleum Company's share of oil produced from the field.


Emeralds' Chief Executive Officer, Angus MacAskill, said:

"We are delighted to receive approval for the commercial development of the
Khurbet East field and also with the results of the independent reserves
evaluation for the Massive formation.

We have been very pleased by the excellent co-operation and support that has been received from both the Syrian Government and Syrian Petroleum Company and we look forward to our future partnership in the joint operating company."

Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNG
Overseas Ltd.



Enquiries: Lisa Hibberd 020 7925 2440

Notes :

1. Reserves are those quantities of petroleum anticipated to be commercially
recoverable by application of development projects to known accumulations from a
given date forward under defined conditions.

2. Proved Reserves are those quantities of petroleum, which, by analysis of
geoscience and engineering data, can be estimated with reasonable certainty to
be commercially recoverable, from a given date forward, from known reservoirs
and under defined economic conditions, operating methods, and government
regulations.

3. Probable Reserves are those additional Reserves which analysis of
geoscience and engineering data indicate are less likely to be recovered than
Proved Reserves. It is equally likely that actual remaining quantities recovered
will be greater than or less than the sum of the estimated Proved plus Probable
Reserves (2P).
In this context, when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate.

4. Full reserve category definitions and guidelines are documented in the
PRMS on the SPE website at
http://www.spe.org/spe-app/spe/industry/reserves/prms.htm

Am i reading it wrong or are they suggesting the field only has a probable life of 2 years...?