Just bought into this share, I think its cheap at the current price. I think in time this could be another BUR.

Anyone else holding this and what are other peoples opinions on it?

Thanks

From Emerald website www.emeraldenergy.com

http://www.emeraldenergy.com/OnP-Syria.htm

Operations & Production
SYRIA
Emerald, though its 100% owned subsidiary SNG Overseas Ltd, holds a 50% working interest in Block 26. Gulfsands Petroleum Ltd is operator and holder of the remaining 50% interest. The Block is located in northeast Syria and covers approximately 11,000 square kilometres. The rights to explore for, develop and produce oil and gas are granted under a contract with production sharing terms (PSA).

Within Block 26 boundary there are several discovered fields owned and operated by Syrian Petroleum Company (SPC) where current production is over 100,000 barrels of oil per day. Included in these SPC fields is Souedieh which is the largest oil field in Syria. These fields produce medium gravity oil from Cretaceous limestone reservoirs. The oil is transported via existing infrastructure for domestic refining or export; produced gas is treated locally and used as fuel for local needs and power generation

The rights to these existing discovered Cretaceous fields are excluded from the PSA for Block 26. The PSA does grant the right to explore for new Cretaceous fields and all the deeper rights within Block 26 boundary where there is significant potential for hydrocarbons in Palaeozoic reservoirs.

A portfolio of 31 prospects and leads has been identified with total mean potential in both Cretaceous and Palaeozoic reservoirs of more than 1 billion barrels of recoverable oil. Plans are progressing to drill a minimum of two exploration wells this year, initially to test a Cretaceous prospect on the flank of the Souedieh field (Souedieh North prospect) and a deep Palaeozoic target underlying the Souedieh field (Tigris Prospect).

Emerald announced in January 2006 the results of an independent reserves study by Rider Scott Company on the Tigris prospect based on the results on a previous well drilled by SPC to test the deep potential below the Souedieh field. There is insufficient data to identify whether the potential is primarily for oil or for gas, and Rider Scott therefore developed two cases involving recoverable Probable and Possible Reserves and Prospective Resources as follows:

Either

For a gas accumulation, Rider Scott classified 442 billion cubic feet of gas (bcf) as Probable Reserves, 442 bcf as Possible Reserves, and an additional 3,447 bcf as a Prospective Resource, giving a total Probable, Possible and Prospective Resource of 4,330 bcf (equivalent to 722 million barrels of oil equivalent (mmboe)
Or
For an oil accumulation, Rider Scott classified 104 million barrels of oil (mmbbl) and 64 bcf as Possible Reserves and an additional 408 mmbbl and 245 bcf as an Prospective Resource, giving a total Possible and Prospective Resource of 512 mmbbl plus 308 bcf (equivalent to 563 mmboe)




Onshore Syria Block 26, Activity Map
Onshore Syria - Block 26, Geoseismic Line: Souedieh Field and Deep Palaeozoic Prospect


Onshore Syria - Block 26, Geoseismic Line: Souedieh Field and North Souedieh Prospect

16/3/06

Centauro Sur prospect:

The Centauro Sur prospect is located to the south of the Campo Rico field. Pride
Rig No 14 commenced drilling the Centauro Sur No.1 exploration well on 14 March
2006.

28/3/06
Centauro Sur prospect:

Pride Rig 14, drilling the Centauro Sur No.1 exploration well, is currently
drilling ahead at 7,401ft.


Not far from target now imo

28/3/06
Saxon Rig 223 is now moving to the Campo Rico block to drill the Las Acacias prospect located south west of the Vigia field.

EEN have an RNS out today, news of drilling rig contracts. The 1st to start
drilling early May, and the 2nd to drill the deeper well in August.
cyril

EEN+
Gulfsands Petroleum PLC
04 April 2006

4 April 2006

Gulfsands Petroleum PLC
('Gulfsands' or 'the Group')

Gulfsands Signs Rig Contracts for Block 26, Syria

First Exploration Well Expected to Spud by May 2006

Gulfsands Petroleum PLC (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
announced today that the Company has executed definitive agreements for the
drilling of three exploration wells with the option to drill a further two wells
within Block 26, Syria.

Gulfsands, the operator and 50% working interest owner in Block 26, has taken
assignment under an existing contract from another operator in Syria, for a
drilling rig owned and operated by Crosco, a drilling company based in Croatia.
Gulfsands will use this rig to drill and evaluate the Souedieh North well
commencing in late April or early May 2006 with the option to drill another well
within the block under this same agreement. Furthermore, the Company signed a
definitive agreement with MB Drilling Overseas Limited for the drilling of two
firm wells with a one well option. This rig will be used to drill to the deeper
Palaeozoic prospects identified in Block 26, such as the Tigris structure which
is scheduled for drilling in August 2006.

The Souedieh North well will be located in the northeast region of Block 26.
This vertical well will be drilled to an approximate total depth of 7,216 feet
with the primary objective being Cretaceous aged reservoirs similar to those
producing in the adjacent Souedieh and Karachok oil fields. This prospect has
the potential to contain in excess of 100 million barrels of recoverable oil
(Gulfsands' internal estimate of potential). Gulfsands has commenced site
preparations for the well, and expects a spud date on or about 1 May 2006. The
net cost to Gulfsands for drilling and evaluating this well is approximately
$800,000.

The Tigris well will also be located in the northeast region of the Block and is
expected to spud in August 2006. The net cost to Gulfsands for drilling and
evaluating this well is approximately $3.25 million. This vertical well will be
drilled to a total depth of nearly 15,000 feet with the primary objectives being
a series of Palaeozoic (Carboniferous and Devonian) sandstone reservoirs. The
Tigris structure is directly underlying the Souedieh oil field (the largest
known oil field in Syria), where oil is produced from the shallower Cretaceous
reservoirs. Wireline log evaluation of an existing well on the structure
drilled some years ago has identified pay zones within the objective reservoirs,
and the Tigris-1 well is designed to evaluate these reservoirs and appraise this
probable hydrocarbon accumulation. Gulfsands announced on 30 January 2006 the
results of a reserves study by Ryder Scott Company, L.P. (Ryder Scott), an
independent petroleum engineering firm, on the Tigris structure. Ryder Scott
developed two cases for this evaluation, an oil case and a gas case, as there
was not sufficient data available at the time to determine the expected
hydrocarbon fluid contained within the Tigris structure. This reserves study
as of 1 January 2006 classified recoverable Probable and Possible Reserves and
Prospective Resource as follows:

For primarily a natural gas accumulation, Ryder Scott has classified 442
BCFG as Probable Reserves, 442 BCFG as Possible Reserves, and a further 3447
BCFG as a Prospective Resource. In summary total reserves potential among
Probable, Possible and Prospective Resource is 4330 BCFG (722 MMBOE).

For primarily an oil accumulation, Ryder Scott has classified 104 million
barrels of oil and 64 BCFG as Possible Reserves and a further 408 MMBO and
245 BCFG as a Prospective Resource. In summary total reserves potential
among Possible and Prospective Resource is 512 MMBO and 308 BCFG (combined
563 MMBOE).

Gulfsands' CEO, John Dorrier, said:
'Gulfsands is constantly seeking ways of accelerating its schedules and
controlling the costs of exploration drilling. These drilling arrangements
represent an important achievement in the current market. The relatively
low-cost and high potential of these two drilling projects remains a very
attractive exploitation of the Company's significant inventory of drilling
opportunities.'

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1144202415&feed=oilbarrel_en


05.04.2006
Gulfsands Petroleum And Emerald Energy Within Weeks Of First Well In Syria
Less than one year after taking over operatorship of Block 26 in Syria and London-listed Gulfsands Petroleum is gearing up to spud its first exploration well on the block. Rig contracts are in place to drill three wells with the option for a further two with the first hole set to sink within weeks - not bad given available rig slots are like gold dust in the current booming natural resources market.

Gulfsands has identified some 31 leads and prospects on the 11,000 sq km block, which surrounds existing oilfields that are currently pumping some 85,000 barrels per day of 20-26-degree API oil crude. Importantly, the block partners (fellow London-listed oil firm Emerald Energy has a 50 per cent stake) have access rights to that nearby network of production infrastructure. The sulphurous crude is produced from Cretaceous limestone reservoirs but its thought the deeper Palaeozoic horizons also hold potential.

As yet the potential of Block 26 has yet to be proved through the drillbit. A number of wells have been sunk in the past but without commercial success. However, Houston-headquartered operator Gulfsands has plans to change this. It has subcontracted a Croatian rig from another operator in Syria and will use this to drill the Souedieh North prospect, with an option to follow-on with a second well. Site work is already underway and the well should spud in late April or early May.

Gulfsands has also signed an agreement with MB Drilling Overseas to drill two firm wells and one well option. This drilling unit will be used to probe deeper Palaeozoic prospects, such as the Tigris structure which is scheduled for drilling in August.

This promises to be an exciting run of months for followers of the companies and will mark Emerald Energys first project outside its core area of Colombia. Souedieh North lies in the northeast of the block and will be drilled to a depth of 7,216 ft to test Cretaceous-aged reservoirs similar to the producing Souedieh and Karachok oilfields. Gulfsands reckons the US$1.6 million well could tap into a structure with the potential to hold more than 100 million barrels of recoverable oil.

The Tigris prospect also lies in the northeast of the block and will be drilled to nearly 15,000 ft at an estimated cost of US$6.5 million. It will test a series of Palaeozoic sandstone reservoirs that lie directly underneath the Souedieh oilfield (the largest known oilfield in Syria), which produces from the shallower Cretaceous reservoirs.

This wont be the first well on the structure: an existing well identified pay zones within the objective reservoirs. According to independent petroleum engineering firm Ryder Scott, the Tigris structure, if gas prone, could hold a 442 bcf of probable reserves with a total prospective resource of 4.3 tcf. If the reservoirs are found to be oil charged, the total prospective resource base in 512 million barrels of oil and 308 bcf of gas. These numbers will remain theoretical, however, until proved by the drillbit - and happily for impatient investors the countdown to the first well is now well underway.
< back

copied from advfn
The announcement this week on Block 26 has been timed to coincide with the 5th Syrian International Oil and Gas Exhibition held in Damascus this week from 3rd April until 6th April. This exhibition is held every 2 years and is a major focus for the Mid-east O&G industry.

I would expect that the Gulfsands announcement would have been a major boost for the Government, Oil Ministry, and exhibitors as it comes in the face of US attempts to isolate the country and place a political and commercial squeeze on them. Much is made of the fact that Gulfsands and Emerald are US and UK companies operating in the country in spite of US sanctions. (Gulfsands is represented as being US on the basis that its headquarters are in Houston.)

http://www.syroil.com/

News:
◙ Oil Reserve in Syria is Rich, Gulfsands Petroleum Says
◙ Petro-Canada closes sale of its Syrian-producing assets
◙ Tanganyika Oil Company Provides Update On Egypt And Syria Operations
◙ Syria Receives Bids for Oil Exploration In Nine Announced Sectors
◙ Syria strikes deals with 14 Kuwaiti, foreign firms to develop oil fields
◙ Petroleum investments in Syria promising, CEO of APICORP says
◙ Russian oil company to establish a refinery in Syria
◙ Syria-Croatia sign gas agreement
◙ Syrian signs oil and gas exploration contract with Canada and Kuwait
◙ Oil exploration agreement in Palmyra
◙ Syria , Egypt to carry out 3rd step of Arab natural gas pipeline
◙ Syrian oil company comes first among Shell partners
◙ The ratification of TAT NAFT contract
◙ Dr. Ibrahim Haddad said " Syria has given the sector of gas a special interest
◙ Syria, Egypt hold talks on gas cooperation project
◙ The ratification of Dublin contract
◙ The ratification of HBS contract
◙ New contract approval

Oil Reserve in Syria is Rich, Gulfsands Petroleum Says

Deputy Executive Director of the American-British Gulfsands Petroleum Company Mehdi Sajjad said that the company is insisting to continue drilling in Syria, denying that it is exposed to any pressures regarding work in Syria .

In a phone call with al-Thawra daily published Wednesday, Sajjad added Syria has transparently announced that her reserve of petrol has decreased, but the report of the company assures that the discovered reserve is rich, particularly in the deep areas.

He pointed out that the company announced that oil "reserve in Dijla field at the 26 sector increased from 500 million to 700 million barrel of oil as well its gas equivalent".

Sajjad underlined that the study prepared by Ryder Scott Petroleum Company pointed out that the "possible reserve of Dijla field is 722 million barrel if it was basically natural gas accumulation and 563 million barrel if it was mainly oil reserve".

He continued that the Ryder Scott Company adopted the data of the seismological survey I its evaluations. The company discovered a hydro-carbon compounds in three of the six wells that were digged earlier.

He asserted that the company is using a very advanced technology in exploration actions in the deep areas, stressing that it will start digging next April.

He indicated that "Syria has attracted many world companies in spite of the difficult situation the region is passing through", pointing out that the company is looking for expanding its exploration in the Syrian fields and developing cooperation with the Syrian government.

Found this on website yesterday it was there 8.21 this morning
it as been removed now


This map shows the location of the 3 Vigia wells also the Centauro Sur and Las Acacias.

http://www.emeraldenergy.com/OnP-CampRico_Vigia.htm


Vigia Field

In February 2005 the Parker 222 drilling rig spudded exploration well Vigia #1 within the Campo Rico block about 11 km from the Campo Rico Field (see Location Map below). Total depth of 11,120 ft was reached in March and two zones successfully tested and produced 16 degrees API oil.

Rig 222 then moved and drilled 2 further wells on the Vigia structure. Vigia #2 was drilled to 11,680 ft and Vigia #3 to 11,070 ft.

Vigia #1, #2 and #3 have been completed with downhole jet pumps. In July 2005 Vigia #1 was put on production followed by Vigia #3 in November 2005 and Vigia#2 in February 2006.

Cumulative oil production from Vigia field at the end of 2005 was 0.11 million barrels of 16 degree API oil.

In December 2005 Ecopetrol has advised the Company that it has granted commercial status to the Campo Rico fields and exercised its right to back-in for 50% of the discovery. Under the terms of the Campo Rico Association Contract, Ecopetrol will now receive 50% of production after the deduction of 8% royalty oil and will reimburse Emerald for 50% of the cost.


Vigia, field and wells.

Map of Vigia showing the 3 Vigia wells also site of proposed Vigia4 also The Las Acacias prospect and The Centauro Sur prospect.

Exploration

In the second half of 2005, Emerald completed the processing and interpretation of the 3D survey that covers some 172 sq km of the Campo Rico block. In addition to appraising the development potential of the existing fields, the survey was designed to identify new prospects in the block. As a result of this programme, Emerald has identified two prospects for immediate drilling: Centauro Sur and Las Acacias.

The Centauro Sur prospect lies to the southwest of Campo Rico field. The Centauro Sur #1 exploration well was spud on 14 March 2006 and is drilling ahead.

The Las Acacias prospect lies to the southwest of Vigia field. The Acacias #1 exploration well will spud in late April 2006.

Website www.emeraldenergy.com
now showing Vigia wells and rest of update.

The New map shows the location of the 3 Vigia wells and Vigia4,also the Centauro Sur-1 and Las Acacias-1

This is looking incredibly good value to me with very little factored in for Syria, which is all about to kick-off. Considering increasing my holding.

http://www.emeraldenergy.com/OnP-CampRico_Vigia.htm

Operations & Production
COLOMBIA : CAMPO RICO ASSOCIATION CONTRACT

503 sq km
Contract awarded in May 2002
Exploration period of up to six years
Exploitation period of up to 22 years
The Campo Rico contract area is in the productive Llanos basin and is adjacent to producing oil fields.

Campo Rico Field

The Campo Rico #1 exploration well was located near the crest of the Campo Rico structure (see the "Campo Rico Field Structure " map below) and was drilled to a depth of 11,795 feet. The well was declared an oil discovery in the Mirador sands in March 2004 and was completed for production. A jet pump was installed in the well and a long-term production test commenced in May 2004.

Two further production wells have now been completed in the field, both drilled directionally from the Campo Rico #1 well site.

Initial testing with downhole jet pumps indicated that both #2 and #3 Campo Rico wells required remedial cementation to eliminate water production from adjacent reservoirs. The workovers were completed in July 2005 and since then all 3 Campo Rico wells have been on production utilising downhole jet pumps.

Cumulative production from Campo Rico field at the end of 2005 was 1.07 million barrels of 16 degrees API oil.

In December 2005 Ecopetrol has advised the Company that it has granted commercial status to the Campo Rico fields and exercised its right to back-in for 50% of the discovery. Under the terms of the Campo Rico Association Contract, Ecopetrol will now receive 50% of production after the deduction of 8% royalty oil and will reimburse Emerald for 50% of the cost.


Campo Rico Location Map
The Campo Rico
Field Structure
Campo Rico Play Schematic




Vigia Field

In February 2005 the Parker 222 drilling rig spudded exploration well Vigia #1 within the Campo Rico block about 11 km from the Campo Rico Field (see Location Map below). Total depth of 11,120 ft was reached in March and two zones successfully tested and produced 16 degrees API oil.

Rig 222 then moved and drilled 2 further wells on the Vigia structure. Vigia #2 was drilled to 11,680 ft and Vigia #3 to 11,070 ft.

Vigia #1, #2 and #3 have been completed with downhole jet pumps. In July 2005 Vigia #1 was put on production followed by Vigia #3 in November 2005 and Vigia#2 in February 2006.

Cumulative oil production from Vigia field at the end of 2005 was 0.11 million barrels of 16 degree API oil.


Vigia, field and wells.

Exploration

In the second half of 2005, Emerald completed the processing and interpretation of the 3D survey that covers some 172 sq km of the Campo Rico block. In addition to appraising the development potential of the existing fields, the survey was designed to identify new prospects in the block. As a result of this programme, Emerald has identified two prospects for immediate drilling: Centauro Sur and Las Acacias.

The Centauro Sur prospect lies to the southwest of Campo Rico field. The Centauro Sur #1 exploration well was spud on 14 March 2006 and is drilling ahead.

The Las Acacias prospect lies to the southwest of Vigia field. The Acacias #1 exploration well will spud in late April 2006.


Campo Rico, new wells.

Agree greyhound, drilling could begin in 3 weeks time, and that might cause some
excitement. Can't find how long it will take, but i believe i read somewhere that the 7200ft deep well should be take in the region of 1 month? If so we could get a
result early June.
cyril

Emerald Energy PLC
18 April 2006


EMERALD ENERGY Plc

18 April 2006

Final results

EMERALD ENERGY Plc, a United Kingdom based company engaged in exploration and
production of hydrocarbons in South America and the Middle East, announces its
final results for the year ended 31 December 2005.


Highlights for 2005

Added five new production wells, achieving 100% drilling success
rate;
Achieved gross production of 1.2 million barrels, 149% higher than
in 2004;
Achieved 199% reserves replacement ratio;
Generated profit before tax of $8 million, 267% higher than in
2004;
Purchased 50% interest in Block 26, Syria.

Centauro Sur #1, spud in March 2006,
has been drilled to a total depth of 11,265 feet using Pride Rig 14. The well
logs identified a zone with potential hydrocarbons



Utilising the results of the 3D seismic survey acquired in 2005, covering some
172 sq km or one third of the Campo Rico block, Emerald is planning to drill at
least five new wells in 2006; including exploration wells on at least two new
prospects, Centauro Sur and Las Acacias. Centauro Sur #1, spud in March 2006,
has been drilled to a total depth of 11,265 feet using Pride Rig 14. The well
logs identified a zone with potential hydrocarbons; and production casing is
being run so that a flow test of the zone can be conducted. Saxon Rig 223 is
rigging up on the location for Las Acacias #1 and the well will spud at the end
of April or in early May.

every 50bopd @ $60 over the 676average for 2005 adds $1,095,000 per year to
Emerald turnover, less royalties and Ecopetrol 50 % share of which 50% will be reimbursed to Emerald.



In December 2005,the Gigante #1A well developed a tubing leak after producing
two million barrels of crude oil over a five-year period. A workover rig was
mobilised in early 2006 and, simultaneously with the tubing repair, the field
staff installed an electric submersible pump to replace the smaller capacity
hydraulic jet pump. Following an initial clean-up period, the well produces in
excess of 900 bopd (2005 average of 676 bopd) with the potential to increase
production rate further when a larger electric generator is fully commissioned.

Obviously the power supply could not cope with the power needed to operate the
new pump and when the new larger electric generator is fully commissioned. I can
see output being increased considerably
But as always do your own reseach.


In December 2005,the Gigante #1A well developed a tubing leak after producing
two million barrels of crude oil over a five-year period. A workover rig was
mobilised in early 2006 and, simultaneously with the tubing repair, the field
staff installed an electric submersible pump to replace the smaller capacity
hydraulic jet pump. Following an initial clean-up period, the well produces in
excess of 900 bopd (2005 average of 676 bopd) with the potential to increase
production rate further when a larger electric generator is fully commissioned.

Gigante field may create an opportunity to drill a second well at Gigante jointly with Ecopetrol, sharing the associated costs and risks, if the required agreement with Ecopetrol is reached. However, the drilling of the Gigante #2 well will not take place earlier than 2007.




The exploitation phase of the Gigante field started on 1 February 2003 under the
sole risk provision of the Matambo Association Contract. Once the sole risks
status was granted, Emerald became entitled to 100% of production (before
royalties) from the Gigante field for as long as it had a balance of
reimbursable costs outstanding in its favour.

In March 2006, Ecopetrol exercised its right to participate in the exploitation of the Gigante field. Joint operation of the Gigante field may create an opportunity to drill a second well at Gigante jointly with Ecopetrol, sharing the associated costs and risks, if the required agreement with Ecopetrol is reached. However, the drilling of the Gigante #2 well will not take place earlier than 2007.

Emerald Energy PLC
18 April 2006


EMERALD ENERGY Plc

18 April 2006

Final results

EMERALD ENERGY Plc, a United Kingdom based company engaged in exploration and
production of hydrocarbons in South America and the Middle East, announces its
final results for the year ended 31 December 2005.


Highlights for 2005

Added five new production wells, achieving 100% drilling success
rate;
Achieved gross production of 1.2 million barrels, 149% higher than
in 2004;
Achieved 199% reserves replacement ratio;
Generated profit before tax of $8 million, 267% higher than in
2004;
Purchased 50% interest in Block 26, Syria.


Chairman's statement

2005 was another important year for Emerald and its shareholders. The Group has
continued its growth in Colombia and purchased new interests in the Middle East.

Colombia

During 2005, Emerald added five new production wells to its production
portfolio, achieving a 100% drilling success rate since resumption of drilling
in 2004. Successful drilling at the Vigia field has added 2.4 million barrels of
Proved plus Probable reserves, achieving a reserves replacement ratio of 199%.

Emerald has constructed new and enlarged facilites at the Vigia and Campo Rico
fields to gather, process and dispatch the increasing volumes of crude from the
additional production wells. As the fields mature these facilities will be
altered to handle the increasing volumes of water production in order to sustain
the oil production rates at the highest possible level.

The upturn seen in the oil and gas industry in the last 12 months has had an
adverse effect on rig availability as well as supplier costs and on their
ability to deliver and meet schedules; Emerald's Colombian management and staff
have handled these additional pressures very well, implementing alternative
drilling and production solutions, minimising delays and fulfilling the
Company's capital programme as planned.

Successful development of the Campo Rico field in the Campo Rico block resulted
in the grant of commerciality status to the field by Ecopetrol, the Colombian
state oil company, in December 2005. A similar decision on the status of the
Vigia field is expected in the near future. Under the terms of the Campo Rico
Association Contract, once commerciality status is granted, Ecopetrol
participates in the exploitation phase of the project, reimbursing Emerald 50%
of the allowable past costs from its share of production and sharing with
Emerald ongoing costs and production on a 50/50 basis with Emerald.

Utilising the results of the 3D seismic survey acquired in 2005, covering some
172 sq km or one third of the Campo Rico block, Emerald is planning to drill at
least five new wells in 2006; including exploration wells on at least two new
prospects, Centauro Sur and Las Acacias. Centauro Sur #1, spud in March 2006,
has been drilled to a total depth of 11,265 feet using Pride Rig 14. The well
logs identified a zone with potential hydrocarbons; and production casing is
being run so that a flow test of the zone can be conducted. Saxon Rig 223 is
rigging up on the location for Las Acacias #1 and the well will spud at the end
of April or in early May.

In December 2005,the Gigante #1A well developed a tubing leak after producing
two million barrels of crude oil over a five-year period. A workover rig was
mobilised in early 2006 and, simultaneously with the tubing repair, the field
staff installed an electric submersible pump to replace the smaller capacity
hydraulic jet pump. Following an initial clean-up period, the well produces in
excess of 900 bopd (2005 average of 676 bopd) with the potential to increase
production rate further when a larger electric generator is fully commissioned.

The exploitation phase of the Gigante field started on 1 February 2003 under the
sole risk provision of the Matambo Association Contract. Once the sole risks
status was granted, Emerald became entitled to 100% of production (before
royalties) from the Gigante field for as long as it had a balance of
reimbursable costs outstanding in its favour. In March 2006, Ecopetrol exercised
its right to participate in the exploitation of the Gigante field. Joint
operation of the Gigante field may create an opportunity to drill a second well
at Gigante jointly with Ecopetrol, sharing the associated costs and risks, if
the required agreement with Ecopetrol is reached. However, the drilling of the
Gigante #2 well will not take place earlier than 2007.

The Silfide #1 exploration well, drilled on the Fortuna block in October 2005,
discovered hydrocarbons that are currently being produced at an average daily
rate of some 30 bopd. In addition to the potential of the Silfide discovery,
Emerald is evaluating the feasibility to drill a horizontal well to produce the
reserves of the Totumal field, also situated in the Fortuna block. The Totumal
field, which is deeper than the Lisama reservoir, targeted by the Silfide #1
well, was produced by Ecopetrol until 1993, when it was abandoned after
producing over 800,000 barrels of oil. Ecopetrol has granted Emerald a
three-month extension to the current exploration period to evaluate the options
before Emerald either commits to drilling a further well on the block, applies
for commerciality for Silfide, or returns the block to Ecopetrol.

The Agueda #1 exploration well, drilled on the El Algarrobo block in March 2006,
recovered no hydrocarbons during a flow test and was plugged and abandoned. As
Agueda was the only prospect identified on the block, the Company expects to
return the block to Ecopetrol and terminate the Association Contract.

In the reporting period, all of Emerald's production came from the Campo Rico
block (the Campo Rico and the Vigia fields) and the Matambo block (the Gigante
field) in Colombia. In 2005, Emerald achieved an average gross production rate
of 3,301 bopd, a 150% increase on 1,322 bopd achieved in 2004. On the
entitlement basis, in 2005, Emerald achieved 2,293 bopd compared to 1,128 bopd
achieved in 2004.

In the first quarter of 2006, Emerald's gross production averaged 4,336 bopd,
compared to 4,451 bopd achieved in the fourth quarter of 2005. This 2.5% decline
in production is a result of failures of the rented hydraulic pumping equipment
at the Campo Rico and Vigia fields as well as constrained production from the
Gigante #1A well in the period leading up to, during and immediately after its
workover. As the surface facilities at the producing fields are upgraded, higher
production levels will be achieved.

Syria

In November 2005, Emerald purchased a 50% participating interest in the contract
to explore and produce hydrocarbons from Block 26, Syria; the consideration was
$7.2 million, plus the issue of 3.5 million ordinary shares, deferred to May
2007. Gulfsands Petroleum Plc ('Gulfsands') is the operator and holder of the
remaining 50% participating interest in the block. The block is situated in the
northeast of Syria in a proven hydrocarbon system evidenced by existing
discovered fields within the blocks boundaries, some of which have been
developed and currently produce in excess of 100,000 bopd.

In January 2006, a 2D seismic acquisition programme covering 1,155 km in the
block was completed. Once the newly acquired seismic data is processed and
integrated with the older existing seismic data, it will be interpreted and
subsequently used to enhance the understanding of the many leads and prospects
that have been identified in the block.

Emerald and Gulfsands are on track to exceed the minimum work obligations under
the Block 26 contract of drilling four wells by August 2007. In April 2006 two
rigs were contracted to drill three wells with options to drill a further two
wells.

Two prospects have been selected to commence the drilling programme:

Souedieh North prospect is a Cretaceous target situated within the
northeast part of the block, located between the existing Souedieh and
Karatchok fields. It is planned to spud the North Souedieh #1 exploration
well in the second quarter of 2006.

Tigris structure is also located in the northeast part of the block and
is directly underlying the Souedieh oil field that produces from the
shallower Cretaceous reservoirs. Using data from a well drilled into the
structure in 1994 and the extensive 3D seismic data available for the
Souedieh field, Ryder Scott Company LP has prepared an independent reserves
study for the Tigris structure, the details of which can be found in the
Review of Operations. The Ryder Scott study has concluded that there are
potentially productive zones contained within Palaeozoic age reservoirs
penetrated by the earlier well bore. It is planned to spud the Tigris #1
exploration well in third quarter of 2006 with the primary objectives being
a series of Carboniferous and Devonian sandstone reservoirs.

Russia

In 2005, Emerald terminated the conditional Sale and Purchase Agreement,
announced on 11 November 2004, to acquire a 25% interest in JSC
Krasnoyarskgazprom. The termination was without penalty and resulted from
Emerald being unable to fully satisfy itself with regard to the security of the
title to the exploration and production licenses held by JSC Krasnoyarskgazprom.

Financial results

The results for the year ended 31 December 2005 show a profit before tax of $8.0
million achieved on the revenue of $32.1 million compared with a profit before
tax of $2.2 million achieved on the revenue of $12.5 million in the year ended
31 December 2004. Through continued production growth and helped by further
strengthening of the oil prices, in the reporting period, Emerald generated an
adjusted EBITDA* of $16.7 million compared to $3.8 million achieved in 2004
(adjusted EBITDA is earnings before interest, tax, depreciation, depletion,
amortisation and write-offs of oil & gas assets, excluding other income,
non-operating items and cost recovery adjustments). Cash at 31 December 2005
totalled $20.7 million compared with $23.6 million at 31 December 2004. The
Company does not propose to declare a dividend for 2005 as it intends to use its
cash reserves and strong cash flow to finance the growth of the Group and its
operations.

Outlook

Emerald's objectives are to grow its reserve base and increase its net
production through exploration and development of existing and new acreage.

The five-well drilling programme in Colombia will explore for, and add to,
reserves and production. The drilling programme for 2006 in Syria, which
continues into 2007, is designed for exploration and will test the potential of
some substantial prospects; success on any one of which will greatly enhance
Emerald's reserve base.

The exploration department in Colombia has been strengthened and given a wider
remit to look both in Colombia and in the surrounding countries of South
America. At the same time, UK based management and staff are reviewing further
opportunities to acquire new exploration acreage, farm-in to existing acreage
with established partners and acquire established assets in new international
locations.

The Company's year-on-year production growth and the current world oil price
will continue to generate strong positive cashflow, which with the Company's
current cash resources, will be used to explore to create a substantial reserve
base.


Alastair Beardsall
Chairman

18 April 2006

Review of operations

Emerald is engaged in exploration and production of hydrocarbons in South
America and the Middle East. In South America, Emerald is participating in
association contracts with Ecopetrol, the Colombian state oil company, and is
actively seeking new exploration opportunities in Colombia and in other
countries of South America. In the Middle East, Emerald is involved in
exploration of Block 26 in Syria.

Colombia

Campo Rico Association Contract

Area of 503 sq km;
Contract awarded in May 2002 with an exploration period of up to
six years and an exploitation period of up to 22 years;
During exploration period, Emerald conducts all activities at its
own risk;
During exploitation period, Ecopetrol and Emerald participate on a
50/50 basis, subject to recovery by Emerald of reimbursable costs from
Ecopetrol's share of production.

The Campo Rico block is in the Llanos basin. Emerald currently operates two
fields in the block: the Campo Rico field and the Vigia field. In addition,
having completed the acquisition of a 3D seismic survey totalling 172 sq km,
Emerald has identified opportunities for exploration drilling outside of the
Campo Rico and the Vigia fields.

Campo Rico field

The Campo Rico field was discovered in March 2004 and the cumulative oil
production from the field at the end of 2005 was 1,068,000 barrels.

The Campo Rico #1 discovery well was drilled to a depth of 11,795 ft in March
2004. The well was brought on production in May 2004. The Campo Rico #2 and #3
development wells were drilled directionally from the site of the Campo Rico #1
well to measured depths of 11,354 ft and 11,287 ft, respectively. The field was
brought on full production in July 2005, after remedial cementation was
performed on the Campo Rico #2 and #3 wells to resolve the problem of excessive
water production. The field produces 16degrees API crude oil from Mirador sands.
The average production rate achieved by the field in 2005 was 2,317 bopd.

In the first quarter of 2006, the Campo Rico field experienced reduced
production rates resulting from the failures of surface hydraulic pumps, poorly
maintained by the contractor. New surface pumps are being purchased to replace
the rented ones. In addition, the wells are being evaluated for production with
larger electrical submersible pumps (ESPs), and, if found suitable, the first
ESPs should be installed and operational by the end of the third quarter of
2006. In the first quarter of 2006, the Campo Rico field was produced at an
average rate of 2,578 bopd.

On 28 December 2005, Ecopetrol granted the Campo Rico field commerciality
status; Ecopetrol now participate with Emerald in commercial exploitation of the
field. Under the terms of the Campo Rico Association Contract, Emerald has the
right to recovery of reimbursable costs from 50% of Ecopetrol's share of
production. Once the recovery of reimbursable costs is complete, production and
costs associated with the operation of the field will be shared equally between
Emerald and Ecopetrol.

As at 31 December 2005, the Campo Rico field was estimated by the Company to
contain 7.6 million barrels of Proved plus Probable plus Possible reserves of
oil.

Vigia field

The Vigia field was discovered in April 2005 and the cumulative oil production
from this new field at the end of 2005 was 112,000 barrels.

The Vigia #1 discovery well was drilled to a depth of 11,120 ft in April 2005
and brought on production in July 2005. The Vigia #2 and #3 appraisal wells were
drilled directionally from the site of the Vigia #1 well to measured depths of
11,680 ft and 11,070 ft, respectively.

The field produces 16degrees API crude oil from the Une and Lower Gacheta sands.
In the period from 1 July to 31 December 2005, the field was produced at an
average rate of 611 bopd. In 2005, production was restricted by the limited
capacity of the early production facilities in the field, particularly with
respect to water handling. In the first quarter of 2006, the field was produced
at an average rate of 1,179 bopd.

The Vigia field is currently being produced under the production test provision
of the Campo Rico Association Contract. Emerald has applied for commerciality
status for the Vigia field and expects Ecopetrol to grant it shortly. On
granting the Vigia field a commerciality status, Ecopetrol will join Emerald in
commercial exploitation of the field. Under the terms of the Association
Contract, Emerald has the right to recovery of reimbursable costs from 50% of
Ecopetrol's share of production. Once the recovery of reimbursable costs is
complete, production and costs associated with the operation of the field will
be shared equally between Emerald and Ecopetrol.

As at 31 December 2005, the Vigia field was estimated by the Company to contain
4.9 million barrels of Proved plus Probable plus Possible reserves of oil.

Exploration opportunities in the Campo Rico block

In the second half of 2005, Emerald completed the processing and interpretation
of the 3D seismic data acquired over some 172 sq km of the Campo Rico block. In
addition to appraising the development potential of the existing fields, the
survey was designed to identify new prospects in the block. As a result of this
programme, Emerald has identified two prospects for immediate drilling: Centauro
Sur and Las Acacias.

The Centauro Sur prospect lies to the southwest of Campo Rico field. The
Centauro Sur #1 exploration well was spud on 14 March 2006 and at the date of
this report has reached its total depth of 11,265 feet. The well has been logged
and casing run in order to flow test a potential hydrocarbon zone identified by
the logs.

The Las Acacias prospect lies to the southwest of Vigia field. The Acacias #1
exploration well will be spud by the end of April or in early May.


Matambo Association Contract

Area of 69 sq km;
Exploration and exploitation rights extend to November 2024;
During exploration period, Emerald conducts all activities at its
own risk;
During exploitation period, Ecopetrol and Emerald participate on a
50/50 basis, subject to recovery by Emerald of reimbursable costs from
Ecopetrol's share of production.

The Matambo block, located in the Upper Magdalena valley, contains the Gigante
field. The Gigante field is operated with a single well, Gigante #1A. The
cumulative oil production from the Gigante field at the end of 2005 was
2,053,000 barrels.

Emerald has operated the Gigante field on a 'sole risk' basis from 1 February
2003. Under the sole risk provision of the Matambo Association Contract, Emerald
is entitled to recover the reimbursable costs incurred during exploration and
sole risk periods. A reserved zone of up to 5 km around the sole risk area has
been established; Emerald retains exclusive exploration rights within this zone
without any additional work obligations.

The Gigante #1A well continued to produce 32degrees API gravity crude oil at an
average rate of 676 bopd during 2005, compared to 715 bopd achieved in 2004. The
decline in the productivity of the well was caused by a hole in the production
tubing that occurred in the last quarter of 2005. The well continued production
at a restricted rate until the workover was completed in February 2006. As part
of the workover, the downhole hydraulic jet pump has been replaced with a larger
capacity electric submersible pump (ESP).

As at 31 December 2005, the Gigante field was estimated by the Company to
contain 17.9 million barrels of Proved plus Probable plus Possible reserves of
oil.

Fortuna Association Contract

Area of 219 sq km;
Contract awarded in December 2003, exploration period of up to six
years and exploitation period of up to 22 years;
During exploration period, the associate (Emerald 90%, Geoadinpro
S.A. 10%, with Emerald carrying Geoadinpro's share of the costs) conducts all
activities at is own risk;
During exploitation period, Ecopetrol and the associate
participate on a 20/80 basis, subject to recovery by the associate of
reimbursable costs from Ecopetrol's share of production.

The Fortuna block lies in the Middle Magdalena basin. The contract area includes
the Totumal oil field, produced by Ecopetrol until it was abandoned in 1993
after producing over 800,000 barrels of oil. The principal exploration prospects
being developed by Emerald are in the shallower Lisama sands that flank the
Totumal field high. Three oil fields that have produced from the Lisama sands
lie just to the south of the Fortuna block.

The Silfide #1 exploration well was drilled in October 2005 to a measured depth
of 5,114 ft and discovered oil producing sandstones. The well was put on test
production in late December 2005 and is currently producing about 30 bopd.
Analysis of seismic, drilling and logging data indicates that the well has
penetrated a secondary target and not the primary Lisama target. Ecopetrol
granted Emerald a three-month extension to the current exploration period to
evaluate the Silfide discovery before the Company either commits to drilling a
further well on the block, applies for commerciality for Silfide, or returns the
block to Ecopetrol.

El Algarrobo Association Contract

The Agueda #1 exploration well was drilled in March 2006 to a depth of 9,980 ft.
The well was tested but no hydrocarbons were recovered and the well was plugged
and abandoned. As Agueda was the only prospect identified in the block, and
drilling of Agueda #1 satisfied the minimum work obligations under the contract,
the Company now plans to terminate the association contract. Currently, Emerald
has a 50% non-operating interest in the El Algarrobo Association Contract.

Technical Evaluation Agreements (TEAs)
The Company has completed its evaluation of the Mantecal and Altamira study
areas granted under the respective TEAs and elected not to apply for exploration
contracts within the two areas. The Company continues to evaluate possible leads
in the Cachama and Las Brisas TEA areas and has until June 2006 to complete its
study and apply for and negotiate exploration contracts over any parts of the
study areas.

Production
In the reporting period, all of Emerald's production came from the Campo Rico
block (the Campo Rico and the Vigia fields) and the Matambo block (the Gigante
field). In 2005, Emerald achieved an average gross production rate of 3,301
bopd, 150% increase on 1,322 bopd achieved in 2004. On the entitlement basis, in
2005, Emerald achieved 2,293 bopd compared to 1,128 bopd achieved in 2004.

Producing fields
--------------------

Campo Rico Vigia Gigante Total
mbbl mbbl mbbl mbbl
-------- ------- -------- -------
-------- -------
Gross attributable production 846 112 247 1,205
Royalty petroleum (68) (9) (49) (126)
Ecopetrol entitlement production (242) -- -- (242)
-------------------- -------- ------- -------- --- -------
Emerald entitlement production 536 104 198 837
-------------------- -------- ------- -------- --- -------

In the first quarter of 2006, Emerald's gross production averaged 4,336 bopd,
compared to 4,451 bopd achieved in the fourth quarter of 2005. This 2.5% decline
in production is a result of failures of the rented surface equipment at the
Campo Rico and Vigia fields as well as constrained production from the Gigante #
1A well in the period leading up to, during and immediately after its workover.
As the surface facilities at the producing fields are upgraded, higher
production levels will be achieved.


Syria

Block 26 Production Sharing Contract

Area of 11,000 sq km;
Production Sharing Contract (PSC) awarded in May 2003, initial
exploration period of 4 years, with options to extend for a further 3 years and
then 2 years and exploitation period of up to 25 years;
Emerald has 50% non-operating working interest in the contract;
Royalty of 12.5%; cost recovery allowance with profit oil share
reducing on a sliding scale basis.

Block 26 is situated in northeast Syria and its boundaries surround existing
discovered fields, some of which have been developed and currently produce in
excess of 100,000 bopd, including the Souedieh field, the largest oil field in
Syria. Production from these fields is from mid-Cretaceous limestone reservoirs
that produce medium gravity 20-26degrees API crude oil. These existing fields
are excluded from the PSC but the deeper stratigraphic levels below them are
not. To date, 31 leads and prospects have been identified in the block. Two
drilling rigs have been contracted to drill three firm wells with options to
drill a further two wells. Two prospects have been selected to commence the
drilling programme in 2006: Souedieh North and Tigris.

Souedieh North prospect

Souedieh North is a Cretaceous target situated within the northeast part of the
block, located between the existing Souedieh and Karatchok fields. North
Souedieh #1, a vertical exploration well, will be drilled to an approximate
depth of 7,200 ft. The well is planned to be spud in the second quarter of 2006.

Tigris prospect

The second prospect, Tigris, is also located in the northeast part of the block.
The Tigris structure is directly underlying the Souedieh oil field. Ryder Scott
Company LP ('Ryder Scott') has prepared an independent reserves study for the
Tigris structure. The data used for the study includes the wireline logs from a
well drilled into the structure in 1994 and the extensive 3D seismic data
available for the Souedieh field. The Ryder Scott study has concluded that there
are nine potentially productive zones contained within Palaeozoic age reservoirs
penetrated by the earlier well bore. Due to the limited nature of the available
data, Ryder Scott was unable to determine the expected type of hydrocarbons
contained within the structure. Addressing this uncertainty, Ryder Scott
developed two cases for their evaluation:

If Tigris is a natural gas accumulation, it is estimated to contain 442
bcf of Probable Reserves; a further 442 bcf of Possible Reserves; and a
further 3,447 bcf of Prospective Resources.

If Tigris is an oil accumulation, it is estimated to contain 104
mmbbl of oil and 64 bcf of gas as Possible Reserves and further 408
mmbbl of oil and 245 bcf of gas as Prospective Resources.

Tigris #1, a vertical exploration well, will be drilled to an approximate depth
of 14,700 ft with the primary objectives being a series of Carboniferous and
Devonian sandstone reservoirs. The well is planned to be spud in the third
quarter of 2006.

New ventures

During 2005, Emerald evaluated several new ventures, some in great detail,
including the purchase of its 50% working interest in Block 26 in Syria. In the
second half of 2005, the exploration department in Colombia has been
strengthened with a wider remit to look both in Colombia and in the surrounding
countries of South America. Emerald's objectives remain to grow its reserve base
and to increase its net production through exploration and acquisition of
assets.


Proved plus Probable reserves

Colombia

The table below summarises the gross attributable Proved plus Probable reserves
in Colombia as at 31 December 2005. Gross attributable reserves are defined as
total field reserves, including royalty oil and any Ecopetrol's entitlements,
but excluding participation of other parties forming the Associate under the
terms of the association contracts with Ecopetrol.

Producing fields
--------------------

Campo Rico Vigia Gigante Total
Proved plus Probable reserves of mbbl mbbl mbbl mbbl
oil: -------- ------- -------- -------
-------- -------
As at 31 December 2004(1) 5,328 -- 7,954 13,282
Revisions(2) -- 2,395 -- 2,395
Production (846) (113) (247) (1,205)
-------------------- -------- ------- -------- --- -------
As at 31 December 2005 4,482 2,282 7,707 14,472
-------------------- -------- ------- -------- --- -------
(1) Source: Reserves Evaluation of the Gigante and Campo Rico fields, by RPS
Energy (formerly, RPS Troy-Ikoda), dated 17 March 2005.
(2) Source: Evaluation of Vigia field, by RPS Energy, dated 2 March 2006.

Syria
The table below summarises Emerald's 50% interest Proved plus Probable reserves
in Syria as at 31 December 2005, under the assumption that the Tigris field is a
gas accumulation.

Oil Gas
------------- ------------

Proved plus Probable reserves: mbbl bcf
------------- ------------

As at 31 December 2004 -- --
Revisions(3) -- 221
Production -- --
----------------------- ------------- ------------
As at 31 December 2005 -- 221
----------------------- ------------- ------------
(3) Source: Estimated Reserves and Prospective Resources Attributable to Tigris
Field Syria, by Ryder Scott Company LP, dated 27 January 2006.

If the Tigris field is an oil accumulation, it is estimated to contain 104
million barrel of oil and 64 bcf of gas Possible reserves (62 million barrels of
oil and 32 bcf of gas net to Emerald).

Alastair Beardsall

Chief Executive

18 April 2006

een on the move