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

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

Doing very nicely, 419/426p. Looking like hot money arriving prior to expected news?
cyril

Doing very nicely, 419/426p. Looking like hot money arriving prior to expected news?
cyril

img src="http://charts.moneyam.com/Chart.aspx?Provider=EODIntra&Code=EEN&Size=520&Skin=BlackBlue&Type=2&Scale=0&Span=YEAR1&MA=&EMA=50;200;&OVER=&IND=&X=331&Y=41&XCycle=&XFormat=&Layout=2Line;Default;Price;HisDate&SV=0">

Emerald Energy Plc

2 September 2008

Colombia - Vigia No.6 Well Result

Emerald Energy Plc ('Emerald' or the 'Company') would like to provide the following update on operations in Colombia.

The Vigia No.6 development well in the Vigia field has been drilled to the target reservoirs and completed as an oil producer. The well encountered the targeted Cretaceous age Une and Gacheta reservoirs. Both reservoirs were oil-bearing with very good development of clean sandstones in the Gacheta. Vigia No.6 was completed to produce from the Gacheta formation and has flow tested at an initial stable rate of over 850 barrels of oil per day with only a small amount of water.

Following the encouraging results in Vigia No.5 and No.6 wells, the two development wells drilled in the Vigia field during the current drilling campaign, the Company has decided to drill a further development well in the Vigia field. This well will utilise approximately 1,500 feet of the cased well bore of the unsuccessful Vigia No.4 well drilled in 2007. The Vigia No.4ST (Side Track) well will be directionally drilled to penetrate the Une and Gacheta reservoirs to the south of the Vigia No.5 well. The drilling of Vigia No.4ST well will commence as soon as the rig-move has been completed.

The Vigia field, including the Vigia No.5, No.6 and No.4ST development wells, has been developed under the sole risk terms of the Campo Rico Association contract.

Emeralds' Chief Executive Officer, Angus MacAskill, said:

'We are delighted that the Vigia No.6 well has continued to demonstrate the potential of the Vigia field, and look forward to the additional production from both this well and the further Vigia and Campo Rico development wells planned for drilling in 2008, contributing to strong second-half production in Colombia.

Another excellent result, 2 more expected (Syria and Ombu)
cyril

Colombia H2 drilling campaign and results
drill result 8/7/08 Vigia#5 1000bopd
drill result 2/9/08 Vigia#6 850 bopd
spud in June Capella #1 if successfull
Drill Capella #2 before November 2008
Currently preparing to dril Vigia #4st
Drill Mirto #1 exploration well in Q4 2008 nearby infrastructure
Drill Jacinto #1 exploration well in Q4 2008 nearby infrastucture
Drill Campo Rico #5 Develoment/production well Q4 2008