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

Well I've been in this for years and with RIFT this morning hitting a possible jackpot it has been a good morning.

http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=GPX:LN&sid=ahM6zZLuGrQo
Production expected from Syria next week?
cyril

Here's the article which was responcable for today's hike.
http://www.telegraph.co.uk/money/main.jhtml?xml=money/2008/07/21/cngulf121.xml
Also GPX issued an RNS stating they will update the market on the reports
this morning, the 1st production.
cyril

Here's the article which was responcable for today's hike.
http://www.telegraph.co.uk/money/main.jhtml?xml=money/2008/07/21/cngulf121.xml
Also GPX issued an RNS stating they will update the market on the reports
this morning, the 1st production.
cyril

deleted to wide

RNS Number : 5652Z
Emerald Energy PLC
22 July 2008








Emerald Energy Plc

22 July 2008

Khurbet East Field Update, Block 26, Syria

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

Production in the Khurbet East field commenced on 21st July with oil production from the
Khurbet East No.4 well, the first to be
connected to the early production facility.

Operations will continue with the connection of the Khurbet East No.5 and Khurbet East
No.6 wells to the early production facility, and
the re-entry, completion and connection of the Khurbet East No. 2 and Khurbet East No. 3
wells. These operations are expected to take place
over several weeks.

An update on production rates will be provided at a later date when these operations have
completed and production levels have
stabilised.


Emeralds' Chief Executive Officer, Angus MacAskill, said:

"We are delighted with reaching this milestone of first production from the Khurbet East
field, following a rapid development made
possible by the co-operation of the co-venturers, the Syrian Petroleum Company, and the Syrian
Government, and we look forward to the
stabilising of production levels over the next few weeks following the connection of the
remaining four production wells."


Enquiries: Lisa Hibberd 020 7925 2440



This information is provided by RNS
The company news service from the London Stock Exchange

And Gulfsands, Emeralds parteners take on the situation





Immediate Release 22 July 2008

Gulfsands Petroleum plc
Oil Production Commences at Khurbet East Field

London, 22nd July 2008: Gulfsands Petroleum plc ("Gulfsands", the
"Group" or the
"Company" - AIM: GPX), the oil and gas production, exploration and
development company with activities in Syria, Iraq, and the U.S.A.,
is pleased to announce that the production of oil commenced at the
Khurbet East Early Production Facility ("EPF") in Block 26, Syria on
21st July 2008.

This early commencement of oil production follows the fast tracking
of construction of an EPF for the Massive Reservoir in the Khurbet
East Field. The discovery well for the Khurbet East field, KHE-1,
completed operations in June 2007.

Gulfsands, the Operator of Syria Block 26 and Dijla Petroleum Company
("DPC"), the jointly owned company established with Syria Petroleum
Company ("SPC") to act as the "joint operating company" under the
terms of the Production Sharing Contract for Block 26, completed the
EPF less than six months after the receipt of approval from the
Syrian Petroleum Company and the Government of Syria for the
development of the Khurbet East Field (see announcement 13th
February, 2008). The commencement of production of oil is several
months ahead of the development schedule contemplated at that time.
The first well brought into production is KHE-4, one of the three
vertical wells to be tied into the EPF. The Company is now proceeding
with un-loading and kick-off operations of the two horizontal wells
(KHE-5H and KHE-6H) and will follow with the two remaining vertical
wells (KHE-2 and KHE-3). The Company expects that it will take
several weeks to complete these operations.
The Company will provide an update on production once all these
operations are completed and production rates have stabilised.
Commenting on this important production milestone, Andrew West,
Chairman of Gulfsands said:
"From discovery to production within this timeframe reflects the
considerable abilities of our technical team and the high level of
co-operation with the Government of Syria and Syria Petroleum
Company. With production from Khurbet East having started well ahead
of schedule, which will ramp up as we tie in additional wells, we
look forward to further developing the other opportunities in Block
26 in what is a highly prospective and proven hydrocarbon system in
Syria."

For more information please contact:

Gulfsands Petroleum (London) +44 (0)20-7182-4016
Kenneth Judge, Director of Corporate Development +44 (0)7733-001-002

Here we go again...zooooom !

Good morning, exciting piece of news today. And some movement in the price,the
start of a whole lot more to come once the other wells are tied in?
cyril

Crumbs...what's happened now ?, up 16p...down 22p...?.

A copy of DFGOs post via ADVFN, hope you don't mind?


After Goverment Royalty 12.5%

Emerald get 50% of cost recovery oil.

Cost recovery oil above the recoverable costs treated as Profit Oil.

Profit Oil Contractor 35%/SPC 65% up to 25,000 bopd.

Profit Oil Contractor 35%/SPC 65% up to 25,000 bopd.

Contractor 33%/SPC 67% for more than 25,000 and less than 50,000 bopd.

A higher scale over 50,000bopd.

Syria: Block 26 PSC Oil Revenue Distribution
Contractor Interests
Emerald Energy 50%
Gulfsands Petroleum 50% (operator)
Royalty (Government)
12.5% of gross oil production
Cost Recovery Oil
50% of gross production less royalty
Cost recovery oil above the recoverable costs treated as Profit Oil

Profit Oil
Contractor 35%/SPC 65% up to 25,000 bopd
Contractor 33%/SPC 67% for more than 25,000 and less than 50,000 bopd
sliding scale at higher production rates
Production Bonuses payable to SPC
$2m payable on reaching 25,000 bopd
$5m payable on reaching 50,000 bopd
Profit Oil
Contractor 35%/SPC 65% up to 25,000 bopd
cyril

Early production from the early production facility. Well done all concerned. This is my dead cert for the rest of this year and next. Lots of good news to come from production and further drilling. 2.50 - 3.00 or more by December (IMNSHO). Great management, fantastic (low cost to develop) area to increase reserves from, a very good relationship with the Syrian Government. Gulfsands will be producing 10% of Syria's oil in 18 months time. My feeling is that this could turn out to be substantialy more in the longer term. Huge huge huge upside. Good luck all holders (you (and great management) make your own luck). Thanks also to the chaps that left. 10,000 barrels a day @ a conservative $100 a barrel @50% while recovering costs ($30M ish) should take around 2 months (feel free to correct me). The books will look very good by next April. Happy times ahead. Its nice to hold a share that you don't feel nervous about in the current economic climate.
--------------------------------------------------------------------------------
A view held by another investor regarding GPX, for me it could apply moreso to EEN
as we have our Colombian assets, which seem to be accumilating cash by the minute and a lot more to come.
cyril

cyril - don't forget the 12.5% royalty off the top of recovery oil, leaving 43.75% each for EEN and GPX (subject to max 25% pa of costs written off), reducing to 17.5% of profit oil.

very nice, as you say.

Stockdog theirs reference to the royalty in post 190, i think it works out at roughly
$62/barrel until cost of exploration reducing to $32/barrel profit thereafter?
The revenue company from Colombia plus that of Syria by year end coupled with cash in the bank, for a company with a M/Cap of just over 224m is,as the header title states "Amazing".
aimho
cyril

Broken through the 4 once again,could even hold with the forecoming news?
cyril

7th August 2008

http://www.sharesmagazine.com/node/4830

Emerald Energy (EEN)

BUY - 395p

TARGET - 605p

STOP LOSS - 324p

Things seem to be looking up for the explorer mainly focused on South America and Syria. After a 96% fall from 1998 to 2003, the shares rallied sharply in 2004, then gently rose: on the chart it resembles a sideways consolidation, albeit one with quite a large range. This year the shares have already climbed by some 98%, outperforming their sector by 125%.

In the recent broad sector pullback the shares have barely corrected below their 50-day average and again press best levels for the year so far. Recent rises in volume also suggest buyers coming in. If a bull flag is forming then a move akin to what preceded its start must be sought on a climb above 405p. This would give a gain of 200p and take the shares toward a test of 600p, which produced support and resistance some ten years ago. Investors must remember another scenario gives a bull channel over four years long, with a mid-line currently preventing the shares rising further. A decisive move up would still allow a rise to test the channel upper return line, again near my 605p objective. Only a fall below 325p would question the bullish outlook and risk a drop toward 250p.

copied from advfn

stevea171 - 9 Aug'08 - 21:56 - 223 of 223


Emerald is involved in a company making exploration/development drilling program making continuous use of 3 drilling rigs (2 in Colombia and 1 in Syria) over the second half of this year and beyond into 09.

This is in addition to current (or near current) oil production of:

Colombia 4,000 bopd
Syria 5,000 bopd (10k bopd shared with Gulfsands)
Total production interest 9,000 bopd from August.

Exploration/development drilling:

Vigia-5. Emerald 100% as no Ecopetrol backin. Completed June and in production from 1/7 at c.1,000 bopd.

Capella-1 (Ombu). Spud announced 14/7. Emerald 90% interest. 4,000 ft. Expected to take 1 month to drill and evaluate.
Should have reached TD by now as only shallow depth.
Result could be announced this week or next.
30 million bo prospect.

Canacol 10% interest in the Ombu block by paying 100% of the cost of drilling and testing the Capella No.1 exploration well. Canacol may earn an additional 5% interest in the block by paying 100% of the cost of two further wells plus the cost of a 2D seismic survey over the prospect. Canacol may earn a further 15% interest in the block by paying 100% of the cost of drilling twelve further wells together with the cost of a 3D seismic survey over the prospect.
In total, Canacol may earn up to a 30% interest in the Ombu block by paying 100% of the cost of up to 15 wells plus 2D and 3D seismic surveys.

Vigia-6. Spud announced 14/7. Emerald 100% as no Ecopetrol backin. 11,000 ft, deviated well.
Expected to take 1 month to drill and evaluate.
Flow rate not expected to be announced until tied in to the central facilities at Vigia.
Expected to enter production early September.

Yousefieh-1. Emerald 50% interest. Exploration well.
Expected to commence drilling mid August. Announcement should be soon.
Est 30 days. Look alike KE Massive structure?

Campo Rico-5. Expected to commence drilling September with the rig moving from Vigia. 11,000 ft, deviated well.
Est 30 days.
Expected to enter production November.


Follow on drills using all 3 rigs to include the following:

KE/Yousefieh/Naor West. To be decided following Y-1 drill.
My guess is KHE-1 will be re-entered for further testing, followed by Y-2 if Y-1 was good.

Ombu. 1 further well by November if the second phase of work is entered into.

Jacinto (Jacaranda). Qtr 4. 6,000 ft. 1 month to drill and evaluate. Unrisked 10 million bo prospect.

Mirto (Miranta). Qtr 4. Unrisked 5-15 million bo prospect.

Vigia-7. To be decided

DFGO thanks for the post most interesting and just shows what we have. One
point is the Syrian share as i believe we have to split with the contractor?
cyril

niceonecyril

slide 31

Cost Recovery Oil
Emerald get
50% of gross production less royalty
Cost recovery oil above the recoverable costs treated as Profit Oil

Profit Oil
Contractor 35%/SPC 65% up to 25,000 bopd

http://www.emeraldenergy.com/documents/EENUpdateJuly2008.pdf

Syria: Block 26 PSC Oil Revenue Distribution
Contractor Interests
Emerald Energy 50%
Gulfsands Petroleum 50% (operator)
Royalty (Government)
12.5% of gross oil production
Cost Recovery Oil
50% of gross production less royalty
Cost recovery oil above the recoverable costs treated as Profit Oil

Profit Oil
Contractor 35%/SPC 65% up to 25,000 bopd
Contractor 33%/SPC 67% for more than 25,000 and less than 50,000 bopd
sliding scale at higher production rates
Production Bonuses payable to SPC
$2m payable on reaching 25,000 bopd
$5m payable on reaching 50,000 bopd
Taxes
SPC pays Contractor income taxes from SPC share of profit

Seems like they may want to keep it under 25kbopd to maintain profit share at 35% and avoid the $2m bonus - unless they are certain they can go a lot higher to, say, 40kbopd on a sustainable basis. Then they'd need to make the same judgement about hitting 50kbopd.

SPC's share seems quite high, but then they do cover income tax out of it which could account for say 15% - so they are getting 50% less income tax which seems more natural - don't forget after the constant 12.5% royalty off the top as well.