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

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.

On the move again, 400p+ at the minute. Not surprised really with news on two fronts, Syria KE-1 near to confirming production update with a possible 10,000bopd
and Colombia Vigra 6 at TD and connecting to pipelines which should ready and adding to output in the next couple of weeks?
EEN has a large cash surplus from its Colombian assets and with a possible 25%
increase in output is fast becoming a money printing company, they also have news from Ombu imminent so its all systems go(hopefully always imho
cyril

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article4596945.ece
cyril

EGM tomorrow, not expecting news just yet but one never know's? It'll be 43 days
since the announcement of Vigra 6 was going ahead now that against 49 days for
confirmation of production (1000bopd) for V5, so perhaps next week there? Syrian well KE-1 EPF to allow 10,000bopd also maybe a week or 2 off completion so any
possible update could come from Ombu? It'll be interesting to see what or if
any updates tomorrow?
cyril

niceonecyril
KE1 will be used to test the Butmah and Kurrachine Dolomite reservoirs.

5 wells to be brought on production KE2,KE3,KE4 all vertical wells and 2 horizontal wells KHE-5H and KHE-6H.


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.

DGFO Thanks for your input its much appreciated,looks like next week if as V-5,
V-6 takes the same 49 days. EGM successful so any sensitive news can now be releasd and nice to see us finishing on 4 today,especially in the light of the market in general.
cyril

niceonecyril

slide 15
Khurbet East & Block 26 Forward
Drilling/Development Programme

Spudding Yousefieh-1 exploration well
www.gulfsands.net/i/pdf/GPX_CorpPres_2008_08_21.pdf

DFGO Thanks for link although not coming up so i'll try,
http://www.gulfsands.net/s/Presentations.asp
Aug 2008
cyril

Great finish,up once again to the highest levels in many a year?
Next week could be interesting(very)?
cyril

Great finish,up once again to the highest levels in many a year?
Next week could be interesting(very)?
cyril