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

Drilling Commences on Yousefieh-1 Exploration Well (Emerald Energy)




RNS Number : 1234F
Emerald Energy PLC
06 October 2008

Emerald Energy Plc

6 October 2008

Yousefieh No.1 Exploration Well, Block 26, Syria

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

Drilling operations have commenced on the Yousefieh No.1 exploration well in Block 26.

The Yousefieh No.1 well is designed to evaluate the potential of a new exploration play
identified from the 3D seismic survey acquired
last year over the Khurbet East field and nearby areas. The well is planned to target
Cretaceous aged formations within a structure located
to the east of the Khurbet East field and the surface location of the well will be
approximately 3 kilometres from the processing facilities
in the field.

The Yousefieh No.1 well is expected to have a total drilling depth of approximately 2,300
metres and take approximately 45 days to drill
and evaluate.

Emeralds' Chief Executive Officer, Angus MacAskill, said:

"We are pleased with the continued progress in evaluating the exploration potential of
this large block and look forward to the results
of this exploration well."

Rebounding nicely....long may it continue.....if oil were to recover, this would rocket !, one of my favourite shares, I have to say !.

Good news, this means inflation will soon come down ...


Oil prices drop below 74$

LONDON (AFP) Oil prices fell below 74 dollars a barrel on Wednesday as fears of recession raised concerns about an extended drop in energy demand, traders said.

Brent North Sea crude for November delivery dropped 79 cents to 73.74 dollars a barrel, adding to a slide of 2.93 dollars recorded on Tuesday in London.

New York's main contract, light sweet crude for November, shed 80 cents to 77.83 dollars after slumping by 2.56 dollars on Tuesday.

At Wednesday's price level Brent crude was half its record high of 147.50 dollars reached in July, owing to lingering worries about falls in energy demand.

A top US central banker, Janet Yellen, said Tuesday that the United States "appears to be in a recession." There are also growing fears Japan and Europe are heading for a spell of economic stagnation or recession.

The German economy is heading for a slowdown, but the downturn will not be a long-lasting one, Chancellor Angela Merkel said Wednesday.

Markets were meanwhile awaiting the latest weekly snapshot of US energy inventories due Thursday, which is set to reveal the nature of current demand for oil in the world's biggest consumer of crude.

The Department of Energy's latest data on inventories has been delayed a day owing to a public holiday in the United States earlier this week.

http://www.investegate.co.uk/Article.aspx?id=200810200700081598G

Looking strong for the future upturn?
cyril

Good update, but many a time this stock will shoot up only to come down again ! it will come right sooner or later......I can see this stock being north of 5 at some stage !, it might take 2 years but I'm in no hurry ; I'm in for the long haul !.

Yousefieh No.1 Exploration Well Update, Block 26, Syria

Emerald Energy Plc ('Emerald' or the 'Company') provides the following update on progress in the Yousefieh No.1 exploration well in Block 26, Syria, following notification from the Operator.

The commencement of drilling operations on the Yousefieh No.1 exploration well, with an expected total drilling depth of 2,300 metres, was announced on 6th October 2008.

Oil shows were observed while drilling a target Cretaceous formation at approximately 1,940 metres. Coring operations were conducted and the recovered cores indicated the presence of oil in the formation.

The remaining programme, which will include drilling to the expected total drilling depth of 2,300 metres, wireline logging and possibly production testing, is expected to take up to two weeks to complete.

Emeralds' Chief Executive Officer, Angus MacAskill, said:

'While encouraging, the results to date are not sufficient to determine at this point either the size or commercial potential of an oil accumulation. We look forward to the results of the complete data acquisition programme in this well.'


Positive without being conclusive i would say,but at least theirs oil to test so feeling quietly confident. So looking forward to the well completing to total depth,
its main target and then testing?
cyril

Good news....even if this well is not commercial.....their knowledge of the nearby geology will have been greatly enhanced probably enough to allow a second well to be perforated close by if necessary......so in the short term at least, the sp will rise !.

I've altered the above RNS to the corrected date of 6th October (not Sept)
cyril

niceonecyril
The Gulfsands RNS gives a lot more information about Khurbet East Field than the
Emerald Energy RNS

A re-evaluation of the Khurbet East Field reserves will
be undertaken by RPS Group Plc as of year-end 2008, with results
expected in Q1 2009.

Immediate Release 5 November 2008


GULFSANDS PETROLEUM PLC
YOUSEFIEH-1, BLOCK 26, SYRIA.
OPERATIONS UPDATE
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
provide the following update on the drilling of the Yousefieh-1 well
in Block 26, Syria, where Gulfsands is operator and an update on
production from the Khurbet East Field (the "Khurbet East Field" or
the "Field") and our Gulf of Mexico operations:

YOUSEFIEH 1 WELL, BLOCK 26, SYRIA:

The Yousefieh-1 well has encountered the target Cretaceous formation
at approximately 1940 metres vertical depth. The formation was
encountered at a slightly shallower depth than was projected prior to
the commencement of drilling.

Core sampling operations over this reservoir section were
successfully completed and together with oil recovered during
drilling operations, have indicated the presence of oil.

The recovered cores will be further evaluated and analysed by the
Company's consultants in Egypt.
Following completion of these activities the Company will resume
drilling to the original target depth of approximately 2300 meters.
The Company intends to run a complete logging programme on the well
once drilled to target depth and expects drilling and testing
operations will be completed within two weeks.
The Yousefieh-1 well is targeting Cretaceous aged reservoirs
identified within a structure located immediately adjacent to the
Khurbet East Field and was designed to evaluate the potential of a
newly identified play type within the Cretaceous reservoir system.
The well is located very close to existing infrastructure, with the
surface location of the well lying within 3 kilometers of the Khurbet
East Early Production Facility (EPF).

KHURBET EAST FIELD, BLOCK 26, SYRIA:
During October, the results of the pressure monitoring survey
conducted in September on the Khurbet East field have been further
evaluated. When taken in conjunction with the production performance
of the Field, these suggest that the Massive reservoir parameters may
be better than was estimated at the time of development approval last
February. This, combined with the negligible amount of produced
water in the Field thus far, indicates that the Field reserves may be
understated.
A re-evaluation of the Khurbet East Field reserves will
be undertaken by RPS Group Plc as of year-end 2008, with results
expected in Q1 2009.
During the month of October, additional pressure monitoring work was
carried out to further assess the performance of the Field's
reservoir which involved the shutting in of each of the producing
wells. During uninterrupted production, the Field continued to
average in excess of 11,000 bopd from 5 wells (2 horizontal and 3
vertical producers) with only trace amounts of water.
To 31st October 2008 over 840,000 barrels of oil have been produced
from the Field. Gulfsands invoices for oil produced and delivered to
the oil processing facilities of the Syrian Petroleum Company on a
monthly basis and Gulfsands has received payment for all invoiced oil
on a timely basis following marketing of the oil by the Government of
Syria in accordance with the provisions of the contract for the
Exploration and Development and Production of Petroleum (the
"Contract") under which Gulfsands is operating in Syria. Oil sales
have been achieved at prices in line with historic pricing of Syrian
Souedieh blend which historically has averaged a discount of
approximately 11 per cent to the price of Brent crude

10 November 2008

Colombia - Capella No.2 Well Result and Ombu Farmout Agreement Amendment

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

Capella No.2 Well Result

Drilling and evaluation operations have been completed on the Capella No.2 well in the Ombu block, and the well has been tested at a total cold flow rate of 345 barrels of oil per day.

Drilling of the well commenced on 1st October and reached its total depth of 550 feet on 19th October. The well was located approximately 1.3 kilometres from Capella No.1, the first discovery well in the block, and had the objective of evaluating the Eocene aged Mirador sands that were flow tested at a total rate of 240 barrels of oil per day in the Capella No.1 well.

Hydrocarbon shows were encountered while drilling the target formation, coring operations were conducted recovering approximately 84 feet of reservoir interval, and wireline logging indicated the presence of 163 feet of potential hydrocarbon bearing intervals.

The lower 140 feet of potential hydrocarbon pay was flow tested, uncased in open hole, using a progressive cavity mechanical pump. During this testing over a period of 4 days, the production stabilised at a rate of approximately 145 barrels per day of 10.5 degree API gravity oil with a water cut of approximately 4% which may have been the return of drilling fluids lost to the formation while drilling. The lower open hole section was subsequently isolated with a retrievable bridge plug so that it may be re-entered later.

The upper 23 feet of potential hydrocarbon pay, isolated behind casing, was perforated and flow tested, also using a progressive cavity mechanical pump. During this testing over a period of 2 days, the production stabilised at a rate of approximately 200 barrels per day of 10.5 degree API gravity oil with a water cut of approximately 10% which, again, may have been the return of drilling fluids lost to the formation while drilling.

Following the completion of the flow testing, the bridge plug between the tested zones was removed and the well was configured for longer term production testing with both zones available for production.

The Company has, based on this further encouraging result, decided to drill the Capella No.3 well, the first deviated well to be drilled in the block, with a surface location adjacent to the Capella No.1 vertical well and penetrating the reservoir approximately 340 metres away. The objectives of this well are to appraise the area near Capella No. 1, evaluate the potential to enhance production by using deviated wells that expose a longer reservoir section for production, and may also include the evaluation of thermal recovery methods. Drilling of the Capella No.3 well will commence once the rig has been mobilised to the location and the well is expected to take up to two months to drill, evaluate and flow test.

Amendment to Ombu Farmout Agreement

Emerald and Canacol Energy Inc. ('Canacol') have entered into an amendment of the farmout agreement announced on 14th July 2008 such that Canacol's working interest in the Ombu block will be fixed at 10% and Canacol will no longer be able to increase its working interest above this level. Canacol is paying 100% of the cost of drilling, evaluating, and production testing of the Capella No.1 well to earn the 10% working interest in the block, subject to the approval of the ANH, the National Hydrocarbon Agency of Colombia, and will pay 10% of all costs thereafter.

Emerald's Chief Executive Officer, Angus MacAskill, said:

'We are very pleased with the results of the Capella No.2 well, demonstrating the presence of oil over 1 kilometre away from the Capella No.1 well and a total cold flow rate of approximately 345 barrels of oil per day, over 40 percent higher than in the Capella No.1 well. We look forward to the results of the Capella No.3 well, the first deviated well to be drilled in the block.'

cyril

GULFSANDS PETROLEUM PLC
OIL DISCOVERY AT YOUSEFIEH-1, BLOCK 26, SYRIA.
PRODUCTION MILESTONE AT KHURBET EAST OIL FIELD, SYRIA

London, 19th November 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 an oil discovery at the
Yousefieh-1 well in the Gulfsands' operated Block 26, Syria. In
addition, the Company is delighted to confirm that cumulative oil
production from the Khurbet East Field (the "Field") has now exceeded
one million barrels.
YOUSEFIEH-1 OIL DISCOVERY:
The Yousefieh-1 well, located approximately 3 kilometres from the
Khurbet East Early Production Facility in Block 26, Syria, has
encountered 63 metres of net oil pay in the target Cretaceous
reservoir system and flowed oil to surface under natural flow at
approximately 900 barrels of oil per day ("bopd").
Yousefieh-1 well was drilled to a total vertical depth of 2139 metres
and encountered the target Cretaceous reservoirs at a slightly
shallower depth than the pre-drill prediction and based on
preliminary wire-line log evaluation, the well encountered an oil
column of approximately 64 metres, with approximately 63 metres of
net oil pay and average porosity of 18.6%.
A drill stem test ("DST") was conducted over the top 19 metre
interval, flowing oil to surface under natural flow and through a
48/64 inch choke, at an average rate of approximately 900 barrels per
day over a 3 hour period with no water produced. While preparing for
the main flow period of the DST, the well produced, with the
assistance of gas lift, at an average rate of approximately 1,450
barrels per day through a 95/64 inch choke over a 3 hour period. The
preliminary results of the test indicate very good reservoir
permeability.
Preliminary well site analyses indicate the oil gravity is
approximately 23 degrees API, similar to the on-site analysis carried
out upon discovery of oil at KHE-1. Core recovery operations were
successfully completed over the entire reservoir interval and the
information obtained from these cores, together with the wire-line
log information and results of the DST will provide valuable
information for the further appraisal of this discovery.
The Yousefieh-1 well was an exploration well designed to evaluate a
stratigraphic trap in this portion of Block 26 unlike the structural
trap of the Khurbet East Field. The Company is currently preparing
plans to undertake an extensive 3D seismic data acquisition programme
to assist in the delineation of leads and prospects in the areas
surrounding the Khurbet East Field and the Yousefieh-1 discovery.
The Yousefieh-1 well will now be suspended and the rig moved to the
Khurbet East Field to drill a delineation well at the north end of
the Khurbet East Field with the aim of establishing the oil water
contact and also with the potential to be used later as a water
disposal well. A more extensive production testing programme over the
reservoir section of the Yousefieh well is expected to commence in
the next few weeks.
KHURBET EAST FIELD, BLOCK 26, SYRIA:
Production of oil from the Khurbet East Field has just passed an
important milestone with confirmation over the recent weekend that
production from t

Yousefieh No.1 Discovery




The Yousefieh No.1 exploration well, located approximately 3 kilometres from the early production facilities in the Khurbet East field, has encountered 63 metres of net oil pay in the target Cretaceous aged formations and flowed oil to surface, under natural flow, at approximately 900 barrels of oil per day.




The Yousefieh No.1 well was drilled to a total depth of 2,139 metres and based on preliminary wire-line log and core evaluation, encountered at a depth of around 1,940 metres an oil column of approximately 64 metres in the target Cretaceous aged formations, with approximately 63 metres of net oil pay having an average porosity of 18.6%.




A flow test was conducted over the top 19 metre interval, flowing oil of approximately 23 degrees API gravity to surface, under natural flow and through a 48/64 inch choke, at an average rate of approximately 900 barrels per day over a 3 hour period with no water produced. While preparing for the natural flow test, the well produced, with the assistance of gas lift, at an average rate of approximately 1,450 barrels per day through a 95/64 inch choke over a 3 hour period. The preliminary results of the test indicate very good reservoir permeability.




Coring operations were conducted across the complete reservoir interval with very good recovery. This information, together with that obtained from the logging and testing operations will be used to evaluate the discovery and prepare an appraisal programme.




The Yousefieh No.1 well was designed to evaluate a new exploration play identified on the 3D seismic data acquired in 2007 over and around the Khurbet East field. Following this early success on the play, the joint venture is planning to acquire additional 3D seismic data to assist in the identification of further prospects and leads in this play in the areas surrounding the Khurbet East field and Yousefieh discovery.




The Yousefieh No.1 well will be suspended and the rig moved to drill a delineation well at the north end of the Khurbet East field with the aim of establishing the oil water contact and also with the potential to be used later as a water disposal well.




Following the evaluation of the data acquired on the Yousefieh No.1 well, a smaller workover rig may be moved to this well to conduct more extensive well testing.




Khurbet East Field Production




The Khurbet East field continues to produce at an average daily oil rate of approximately 11,500 barrels per day from 5 wells (2 vertical and 3 horizontal producers) with only trace water production and cumulative oil production from the field has now exceeded one million barrels.




Pressure monitoring operations conducted in producer wells in October indicate that there has been only minimal reservoir pressure reduction in the Khurbet East field. This information, along with the production history and data acquired in the field to date will be included in the field reserves updated planned to be completed in the first quarter of 2009.







Emerald's Chief Executive Officer, Angus MacAskill, said:




'We are delighted with the results of the Yousefieh No.1 well, the first on this exciting new exploration play and look forward to the results from both the appraisal of this discovery and from the acquisition of further 3D seismic data in the area. We are also very pleased with the excellent performance of the Khurbet East field and the achievement of the milestone of the first million barrels from this field.'
cyril

Yousefieh No.1 Exploration Well Result, Block 26 (Emerald Energy)




RNS Number : 4363I
Emerald Energy PLC
19 November 2008


Emerald Energy Plc

19 November 2008


Yousefieh No.1 Exploration Well Result, Block 26, Syria

Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the following update
on operations in Block 26, Syria.

Yousefieh No.1 Discovery

The Yousefieh No.1 exploration well, located approximately 3 kilometres from the early
production facilities in the Khurbet East field,
has encountered 63 metres of net oil pay in the target Cretaceous aged formations and flowed
oil to surface, under natural flow, at
approximately 900 barrels of oil per day.

The Yousefieh No.1 well was drilled to a total depth of 2,139 metres and based on
preliminary wire-line log and core evaluation,
encountered at a depth of around 1,940 metres an oil column of approximately 64 metres in the
target Cretaceous aged formations, with
approximately 63 metres of net oil pay having an average porosity of 18.6%.

A flow test was conducted over the top 19 metre interval, flowing oil of approximately 23
degrees API gravity to surface, under natural
flow and through a 48/64 inch choke, at an average rate of approximately 900 barrels per day
over a 3 hour period with no water produced.
While preparing for the natural flow test, the well produced, with the assistance of gas lift,
at an average rate of approximately 1,450
barrels per day through a 95/64 inch choke over a 3 hour period. The preliminary results of
the test indicate very good reservoir
permeability.

Coring operations were conducted across the complete reservoir interval with very good
recovery. This information, together with that
obtained from the logging and testing operations will be used to evaluate the discovery and
prepare an appraisal programme.

The Yousefieh No.1 well was designed to evaluate a new exploration play identified on the
3D seismic data acquired in 2007 over and
around the Khurbet East field. Following this early success on the play, the joint venture is
planning to acquire additional 3D seismic data
to assist in the identification of further prospects and leads in this play in the areas
surrounding the Khurbet East field and Yousefieh
discovery.

The Yousefieh No.1 well will be suspended and the rig moved to drill a delineation well at
the north end of the Khurbet East field with
the aim of establishing the oil water contact and also with the potential to be used later as
a water disposal well.

Following the evaluation of the data acquired on the Yousefieh No.1 well, a smaller
workover rig may be moved to this well to conduct
more extensive well testing.

Khurbet East Field Production

The Khurbet East field continues to produce at an average daily oil rate of approximately
11,500 barrels per day from 5 wells (2
vertical and 3 horizontal producers) with only trace water production and cumulative oil
production from the field has now exceeded one
million barrels.

Pressure monitoring operations conducted in producer wells in October indicate that there
has been only minimal reservoir pressure
reduction in the Khurbet East field. This information, along with the production history and
data acquired in the field to date will be
included in the field reserves updated planned to be completed in the first quarter of 2009.



Emerald's Chief Executive Officer, Angus MacAskill, said:

"We are delighted with the results of the Yousefieh No.1 well, the first on this exciting
new exploration play and look forward to the
results from both the appraisal of this discovery and from the acquisition of further 3D
seismic data in the area. We are also very pleased
with the excellent performance of the Khurbet East field and the achievement of the milestone
of the first million barrels from this
field."


Enquiries: Lisa Hibberd 020 7925 2440

Emerald a buy with 7.50 target

"Jefferies International initiates coverage of UK exploration and production stocks. Starts Afren (AFR.LN), Cairn Energy (CNE.LN), Emerald Energy (EEN.LN), Premier Oil (PMO.LN) and Tullow Oil (TUWLY) at buy.
Has Sibir Energy (SBE.LN) at hold.

Says Emerald Energy is the top recommendation and is an overlooked growth story with significant upside potential through exploration and appraisal drilling. With regards to the sector says, "valuations in the E&P sector offer a unique opportunity to build positions in deeply oversold stocks, while gaining exposure to a long-term oil price outlook that remains positive."

More good news !.....more production to come !, shame oil price is not higher otherwise the sp would be twice what it is now !.

Drilling Campo Rico No.5 Production well

Drilling the Capella 3 well
The first deviated well to be drilled in the block,with a surface location adjacent to the Capella No.1 vertical well and penetrating the reservoir approximately 340 metres away.
The objectives of this well are to appraise the area near Capella No. 1, evaluate the potential to enhance production by using deviated wells that expose a longer reservoir section for production.

Emerald is currently evaluating tenders for a suitable drilling rig and expects the Gigante No.2 development well to the producing Tetuan formation to spud before the year end.
In addition, Emerald, at its own cost, will deepen the well to the prospective Caballos horizon where the Company believes the target reservoir may contain 15 million barrels of recoverable hydrocarbon resource.

Drilling of the exploration wells in the Maranta and Jacaranda blocks is also expected to commence towards the end of 2008 following the completion of the regulatory permitting process and site preparation

The graph shows a rising trend here...should crude rise a little say up above $60, this may rise a lot !.

From Emerald Energy partener Gulfsands Petroleum 4/12/08 Brokers note

Going forward exploration activity in the South West of Block 26 has potential to add both significant reserves and production from the more structurally complex but more numerous Dolomitic reservoir units.

Rating
We believe GPX makes a convincing investment proposition both now and for the medium term. From Khubert East the company is already producing at a stabilised rate of ~11,000bbl/d.

Full exploitation of Block 26 would see GPX become a significant oil production company; we anticipate production levels of around 50,000bbl/day by 2012 with potential 1P reserves of ~300MMbbls.

Current Operations Update
Syria
After the recently completed Yousefieh-1 well, GPX plans to drill an additional 1-2 step-out wells in 1H09 to appraise fully the target Cretaceous reservoir units.
By 2009 the Syrian Petroleum Company will begin commissioning additional capacity for the EPF; GPX will only bear the additional rental payments once the new facilities are in use.

In addition to the construction of new infrastructure to develop Khubert East from its current 11,500bbl/d production capacity, GPX believes there is further exploration potential in the south-west of Block 26 within fractured Dolomitic limestone reservoir units.

GPX intends to shoot new 3D seismic over this area in 2009, aimed at creating a detailed exploration prospect inventory that will form the basis of a future exploration drilling programme.

GPX may look to move into a more active phase of exploration in the south-west region in 1H09.

It is understood that the geology in this area is structurally more complex, with an increased fault density; this would create smaller, but more numerous, compartmentalised hydrocarbon accumulations.




www.mediafire.com/?2et4fnui0ss


Cyril

Edit I can not get link to work

RNS Number : 5529K
Emerald Energy PLC
22 December 2008



Emerald Energy Plc




22 December 2008




Drilling Report : Gigante No.2 Well, Matambo Block, Colombia




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




Drilling of the Gigante No.2 well has commenced. Gigante No.2 is planned primarily as a development well in the currently producing Tetuan reservoir. Located close to the crest of the structure, this well is expected to be approximately 250 feet higher than the existing Gigante No.1A well. The Company expects Gigante No.2 to recover approximately 4 million barrels of existing oil reserves from this reservoir, with initial rates similar to the rate of 3,000 barrels of oil per day experienced in the early production from the Gigante No.1A well.




The cost of the well to the Tetuan reservoir will be shared equally between Emerald and Ecopetrol S.A. ('Ecopetrol'), the Colombian oil company with a 50% interest in the Gigante field. In addition, Emerald, at its own cost which is expected to be approximately $2 million, will deepen the well to the prospective Caballos formation approximately 120 feet below the Tetuan reservoir to evaluate the exploration potential of this deeper horizon. The Company estimates the Caballos formation may contain 15 million barrels of unrisked recoverable resources. In the event of success, Ecopetrol has the right, under the Association Contract, to participate at a 50% interest in development of the Caballos formation by reimbursing a 50% share of exploration costs.




Gigante No.2 is expected to have a total drilling depth of approximately 16,000 feet and take approximately 6 months to drill and evaluate. The total cost of the well is expected to be approximately $36 million, with Emerald paying $19 million and Ecopetrol paying $17 million.




Prior to the end of the third quarter of 2008, Emerald had pre-invested approximately $5 million in site preparation and materials for the project. The Company therefore expects that Emerald's remaining expenditure for the Gigante No.2 well will be approximately $14 million.




The Gigante No.2 well forms part of the Company's 2008/2009 capital investment programme, all of which is expected to be funded from existing cash and cash generated from operations.




The Gigante field, located in the Matambo block in the Upper Magdalena Valley, commenced production in 1999 from the Gigante No.1A well and has subsequently produced over 2.75 million barrels of oil with a current production rate of approximately 950 barrels of oil per day.







Emerald's Chief Executive Officer, Angus MacAskill, said:




'We are delighted to have started drilling this well with our partner, Ecopetrol. The well has the potential to materially add to both the production and the reserves of the Company, and we look forward to the results towards the middle of 2009.'







Enquiries: Lisa Hibberd 020 7925 2440

Emerald starts new well
MoneyAM
Emerald Energy said this morning that drilling of the Colombian Gigante No.2 well has commenced.

The Gigante No.2 well in Colombia is planned primarily as a development well in the currently producing Tetuan reservoir. Located close to the crest of the structure, this well is expected to be approximately 250 feet higher than the existing Gigante No.1A well. The Company expects Gigante No.2 to recover approximately 4 million barrels of existing oil reserves from this reservoir, with initial rates similar to the rate of 3,000 barrels of oil per day experienced in the early production from the Gigante No.1A well.

The cost of the well to the Tetuan reservoir will be shared equally between Emerald and Ecopetrol, the Colombian oil company with a 50% interest in the Gigante field. In addition, Emerald, at its own cost which is expected to be approximately $2m, will deepen the well to the prospective Caballos formation approximately 120 feet below the Tetuan reservoir to evaluate the exploration potential of this deeper horizon. The Company estimates the Caballos formation may contain 15 million barrels of unrisked recoverable resources. In the event of success, Ecopetrol has the right, under the Association Contract, to participate at a 50% interest in development of the Caballos formation by reimbursing a 50% share of exploration costs.

Gigante No.2 is expected to have a total drilling depth of approximately 16,000 feet and take approximately 6 months to drill and evaluate. The total cost of the well is expected to be approximately $36m, with Emerald paying $19m and Ecopetrol paying $17m.

Emerald's CEO, Angus MacAskill, said: 'We are delighted to have started drilling this well with our partner, Ecopetrol. The well has the potential to materially add to both the production and the reserves of the Company, and we look forward to the results towards the middle of 2009.'