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

Emeralds partener in Syria Gulfsands RNS


Immediate Release 21 January 2009



Gulfsands Petroleum plc
Drilling Commences on Yousefieh-2 Appraisal Well

London, 21st January 2009: Gulfsands Petroleum plc ("Gulfsands",
the "Group" or the "Company" - AIM: GPX), the oil and gas production,
exploration and development company with activities in Syria, Iraq,
and the U.S.A., is pleased to announce that following the Yousefieh-1
oil discovery announced in November 2008, drilling operations have
commenced on the Yousefieh-2 appraisal well in Block 26.
The Yousefieh-2 well is planned to be drilled as a vertical well to a
total depth of approximately 2060 meters, and will target the
Cretaceous aged reservoirs found to be oil bearing in the Yousefieh-1
discovery well. The Yousefieh-1 well encountered approximately 63
metres of net oil pay (65 metres gross), and flowed oil to surface at
an average rate of 900 barrels of oil per day (bopd) on drill-stem
test over a 19 metre interval at the top of the reservoir. The
Yousefieh oil discovery established the presence of a new exploration
play in this area, and the Company believes that the recently
announced 640 square kilometer 3D seismic survey will identify
various exploration prospects some of which will be similar to
Yousefieh.
The Yousefieh-2 well is located approximately 1.8 kilometres east of
the Yousefieh-1 well, and near the currently interpreted eastern
limit of the accumulation. The Company expects the Yousefieh-2 well
to encounter a thinner reservoir section that will provide valuable
information on lateral variations in reservoir characteristics such
as facies, porosity and permeability in order to refine the geologic
model and to aid in determining reserves and future appraisal or
development well locations. The Yousefieh-1 discovery 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).
The Company expects that drilling operations will be completed within
45 days.
This release has been approved by Richard Malcolm, Chief Executive of
Gulfsands Petroleum Plc who has a Bachelor of Science degree in
Geology with 29 years of experience in petroleum exploration and
management. Mr. Malcolm has consented to the inclusion of the
technical information in this release in the form and context in
which it appears.

Nearly back to all time highs...doing well this one !.

Operations Update (Emerald Energy)





TIDMEEN

RNS Number : 2060M
Emerald Energy PLC
26 January 2009

?
Emerald Energy Plc


26 January 2009


Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the
following update for its activities:


HIGHLIGHTS


* Appraisal of discovery at Yousefieh underway.
* Appraisal of Capella heavy oil discovery underway with 4 wells, in total,
drilled.
* Gigante No.2, designed to develop the Tetuan reservoir and explore the deeper
Caballos formation, is drilling ahead at approximately 6,200 feet with a target
total depth of 16,000 feet.
* Khurbet East field production averaged more than 10,000 bopd (gross) in Q4 2008.
* Colombia average production over 4,300 bopd (gross) during Q4 2008, after
development drilling.
* Production (quarterly average net entitlement) of over 6,000 bopd in Q4 2008.
* Cash balance of over $70 million (unaudited) at end of 2008.
* Active forward exploration and development programme funded from existing cash
and cash flow.



Syria


The Khurbet East No.7 delineation well, drilled in the north end of the field
indicates that the oil-water contact may be slightly deeper than interpreted
from previous information. The well has been suspended and may be used later as
a water disposal well. A revision to the Khurbet East reserves study for the
Massive reservoir completed in January 2008 is being undertaken utilising this
and other data including data acquired during early production.


The Yousefieh No.1 discovery well identified a 63 metre net oil pay column, the
upper 19 metres of which produced 900 bopd under natural flow during a
production test. Yousefieh No.2, the first appraisal of the discovery has been
spud and is designed to test the limits of the hydrocarbon accumulation.
Yousefieh No.1 identified a new geological play type in the area and the
acquisition of a 640 square kilometre 3D seismic survey has commenced with the
aim of exploring this play further.


Gross oil production to the end of 2008 totalled over 1.4 million barrels since
the start of production from the Khurbet East field in July 2008. During
December 2008, gross oil production averaged 9,432 barrels per day, reduced by
the execution of a previously planned reservoir and pressure monitoring
programme during the month.


Colombia


Development activity continues with 2 wells having commenced drilling in the
second half of December. The Campo Rico No.5 well is expected to be completed in
February 2009. The Gigante No.2 development well is expected to recover
approximately 4 million barrels of existing reserves from the Tetuan reservoir.
Initial production rate for the Gigante No.2 well is expected to be similar to
the rate of 3,000 barrels of oil per day experienced in the early production
from the Gigante No.1A well. In addition, the well will evaluate the resource
potential of the Caballos formation, which the Company estimates may contain 15
million barrels of unrisked recoverable resources, some 120 feet below the
Tetuan. Gigante No.2 is expected to be completed around the middle of 2009.


Drilling operations have continued in the Ombu block. Capella No.3, the first
deviated well to be drilled in the block, has a surface location adjacent to the
Capella No.1 vertical well and penetrates the reservoir approximately 340 metres
away. The Capella No.4 vertical well was drilled approximately 1.6 kilometres to
the southwest of the Capella No.1 location. The Capella No.3 and Capella No.4
wells both encountered the target Cretaceous Mirador reservoirs with net
hydrocarbon intervals similar to those encountered in the previous wells.
Production testing of these wells has not been completed. The rig has now
commenced drilling the Capella No.5 well, located some 3.4 kilometres to the
northeast of Capella No.1.


Under the amended terms of the farm-out agreement announced on 10 November 2008,
the cost of drilling and production testing the Capella No.1 well was paid by
Canacol Energy Inc. to earn a 10% interest in the Ombu block; the assignment of
the 10% interest is subject to the approval of the ANH.


Due to a number of events, compounded by inclement weather, the exploration
wells in the Maranta and Jacaranda blocks have been delayed. The Mirto No.1 well
in the Maranta block and the Jacinto No.1 well in the Jacaranda block are both
now expected to commence drilling in the first quarter of 2009. The Company
estimates that the Mirto prospect may contain unrisked prospective resource of
between 5 and 15 million barrels, and the Jacinto prospect may contain unrisked
prospective resources of over 10 million barrels.


Gross oil production totalled approximately 1.3 million barrels during 2008 with
an average of 4,960 barrels per day for December 2008. Production in the fourth
quarter of 2008 increased as a result of the successful development drilling
campaign in the Vigia field.


Peru


Emerald was the successful bidder on Block 163 in the 2008 bidding round. On
completion of the award process, Emerald will hold 100% working interest and
operatorship of Block 163, Emerald's first exploration block in Peru.


Block 163 is located in the Ucayali basin, approximately 440 kilometres to the
northeast of Perus capital, Lima, and has an area of approximately 5,000 square
kilometres. The work commitment during the first phase of the exploration and
production contract, lasting twelve months, consists of technical studies.


Production


During the period to 31 December 2008 the Company benefited from production in
Colombia and Syria as shown below.
+-----------------------------+---------+---------+---------+---------+---------+---------+
| | Q4-2008 | Q3-2008 | Q2-2008 | Q1-2008 | FY 2008 | FY 2007 |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| | bopd | bopd | bopd | bopd | bopd | bopd |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Gross production: | | | | | | |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Colombia | 4,355 | 3,953 | 2,823 | 2,979 | 3,531 | 3,456 |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Syria | 10,062 | 5,312 | - | - | 3,864 | - |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Working interest | | | | | | |
| production: | | | | | | |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Colombia | 3,394 | 2,902 | 1,792 | 1,799 | 2,475 | 2,274 |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Syria | 5,031 | 2,656 | - | - | 1,932 | - |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| | 8,425 | 5,558 | 1,792 | 1,799 | 4,407 | 2,274 |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Net entitlement production: | | | | | | |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Colombia | 3,087 | 2,644 | 1,619 | 1,622 | 2,246 | 2,038 |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| Syria | 2,961 | 1,569 | - | - | 1,139 | - |
+-----------------------------+---------+---------+---------+---------+---------+---------+
| | 6,048 | 4,213 | 1,619 | 1,622 | 3,358 | 2,038 |
+-----------------------------+---------+---------+---------+---------+---------+---------+


Outlook


Development drilling is taking place in the Campo Rico and Gigante fields in
Colombia and is planned for the Khurbet East field in Syria. Appraisal
activities are taking place on the Capella discovery in Colombia with the
drilling of up to a further 3 wells and the long term testing of all 7 wells
planned for 2009. Appraisal drilling on the Yousefieh discovery in Syria is
underway and at least 1 further appraisal well is expected to be completed in
2009. Exploration wells are planned to commence drilling in the first quarter of
2009 in the Maranta and Jacaranda blocks in Colombia. The capital budget for
2009 totals approximately $85 million, with all of the activity planned to be
funded from existing cash and cash generated from production.


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


"We are very pleased with the progress made by the Company in 2008, reflected in
the increased level of production at the year end and the participation in two
material discoveries at Capella and Yousefieh. We look forward to an exciting
year ahead with material development, appraisal and exploration activity in
Syria and Colombia."

DFGO; thanks, will add to the Header, progress quitely ticking along, no refer to the update on the facilities? All looking good though, with SP doing very nicely in the present market.
cyril

niceonecyril

new pdf on emerald website

http://www.emeraldenergy.com/documents/20090126EENInvestorPresentation.pdf

Best performing oil stock this one....nearly at all time highs...what would the sp be if oil was around the $100 mark ?.

More proof of why this is one of the best performing oil companies in to days market.

Emerald Energy Plc

11 February 2009

Colombia - Operations Update

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

Capella Discovery, Ombu Block

Extended production testing of wells drilled on the Capella structure has commenced with an average daily production rate of approximately 400 barrels of oil per day, consisting of contributions from the Capella No.1 and Capella No.2 wells. Since the recent commencement of production, the produced water cut for the field has steadily reduced to a level of approximately 6%.

The field production rate is currently constrained by the oil trucking and sales capacity as would be expected when a new supply of heavy oil, such as the oil produced from Capella, is being introduced to a local market. The Company is actively engaged in developing the market for this oil and expects that the local capacity will be increased during the year. The Company believes that longer term the crude oil will be transported by pipeline to the larger and more established markets for heavy crude where these logistical constraints will not exist.

In the Capella No.3 well, the lower, open-hole, interval in the Mirador sand was flow tested, using a progressive cavity mechanical pump, over a period of 3 days with the production stabilising at a rate of approximately 135 barrels per day of 10 degree API gravity oil with a water cut of approximately 8% which may have been the return of fluids lost to the formation while drilling. The upper, cased-hole, interval was encountered with similar thickness and petrophysical properties as in the previous wells but was not flow tested during the initial drilling and testing operation. The rig is planned to move back to this well to flow test the upper interval at a convenient point during the appraisal programme.

In the Capella No.4 well, both of the Mirador reservoir intervals were encountered with the upper interval in this well being thinner than in previous wells. However, poor cementing within the well bore, resulted in neither of the Mirador intervals being effectively flow tested prior to moving the rig to drill the Capella No.5 well. The Company is currently evaluating ways in which the conditions within the well can be improved to allow effective flow testing of this well during the appraisal programme.

Drilling operations are continuing in the Capella No.5 well. The Mirador sands have been encountered as expected, cores have been cut across the Mirador reservoir intervals, and wireline logging is being conducted.

Gigante No.2 Development Well

The Gigante No.2 well that commenced drilling in December 2008 has reached a planned casing point at a depth of approximately 8,725 feet. The 13 3/8' casing is being run into the well and will be cemented in place. The planned total depth of this well is approximately 16,000 feet; drilling and initial evaluation of the well is expected to be completed by mid 2009.

Campo Rico No.5 Development Well

Drilling of the Campo Rico No.5 development well has been completed. Wireline logging in the well indicated a net potential hydrocarbon pay interval of approximately 28 feet in the Mirador sands with the top of the Mirador sand being slightly deeper than encountered in Campo Rico No.3 well, the highest well on the structure. The drilling rig has been demobilised from location, completing the planned drilling activity under this rig contract. The well is now being configured for production, using a smaller workover rig.

Maranta Farmout Agreement

The Company has entered into a farmout agreement with La Cortez Energy Inc. ('La Cortez') under which La Cortez will earn a 20% interest in the Maranta block by paying 60% of the historic exploration costs including the acquisition of 71 km of 2D seismic, plus 65% of the cost of drilling and testing the Mirto No.1 exploration well.

This agreement is subject to a number of conditions, including the approval of the ANH, the National Hydrocarbon Agency of Colombia, of the assignment contemplated by this agreement.

The Maranta block lies in the Putumayo basin in the south-west of Colombia, adjacent to blocks containing producing oil fields and recent discoveries, including the Costayaco discovery. The Mirto No.1 exploration well is planned to commence drilling in the Maranta block towards the end of the first quarter of 2009.

Jacaranda Exploration Well

Preparations are in the advanced stages for the drilling of the Jacinto No.1 exploration well in the Jacaranda block. Civil works for the wellsite and access road have commenced and the drilling rig contract has been awarded. The Company expects the Jacinto No.1 well to commence drilling in the first quarter of 2009.

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

We are very pleased with the progress in our asset portfolio in Colombia, with material advances being made in development, appraisal and exploration activities. In particular, we are delighted to have commenced longer term production testing from Capella, a key step in the appraisal of this discovery, less than 5 months after its discovery.'

cyril

Emerald sp still in the rising trend....ohhh ! for a crude price rise as well !.

New article and analysis, click HERE

More amazing news,
Emerald Energy Plc




24 February 2009




Operations Update - Syria, Block 26




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




Yousefieh No.2 Appraisal Well Result




Drilling and evaluation operations have been completed at the Yousefieh No.2 appraisal well, located approximately 1.8 kilometres east of the Yousefieh No.1 discovery.




The Yousefieh No.2 well, drilled to a total depth of 2,070 metres, targeted the same Cretaceous reservoir as encountered in Yousefieh No.1 but close to the interpreted eastern limit of this stratigraphic accumulation where a significantly thinner reservoir section was expected.




Based on wireline logging and cores recovered while drilling, the well encountered approximately 16 metres of net potential hydrocarbon pay with an average porosity of approximately 16%. An open-hole production test of the reservoir interval recovered quantities of oil and water but did not establish continuous production at surface. A liner will be run in the well and the reservoir interval may be re-tested at a later date using a workover rig.


As expected in the pre-drill estimation, the Yousefieh No.2 well encountered the reservoir with less thickness and lower reservoir quality than seen in Yousefieh No.1. This variation is consistent with a stratigraphic carbonate accumulation such as the Yousefieh discovery. The data acquired in this well will be used to refine the understanding of these lateral variations in the geological and reservoir modelling of the accumulation and to assist in development planning.




The Yousefieh discovery is located close to existing infrastructure, with the Yousefieh No.1 surface location approximately 3 kilometres from the production facilities in the Khurbet East field.




Yousefieh No.1 Flow Test




A cased-hole flow test has been conducted in the Yousefieh No.1 discovery well. The whole 63 metre net oil pay interval was open to flow as an ineffective cement bond behind the casing provided poor vertical isolation over the interval. The well flowed, under natural flow and through a 48/64 inch choke, at an average rate of approximately 1,460 barrels of oil per day over a 4 hour period with a water cut of up 5%, and approximately 570 barrels of oil per day through a 32/64 inch choke over a 12 hour period. These results compare favourably with the open-hole test run previously over the top 19 metres of reservoir which recorded an oil rate of approximately 900 barrels per day through a 48/64 inch choke.




Remedial cementation of the production liner is planned to isolate the water producing zone prior to commencement of production from the well.




Khurbet East No.8 Delineation Well




The drilling rig, following demobilisation from the Yousefieh No.2 well location, is moving to drill a delineation well in the southern part of the Khurbet East field.




The Khurbet East No.8 well, located 2.3 kilometres to the south of the Khurbet East No.3 production well, is positioned to investigate reservoir properties and determine the oil-water contact in this area and may have the potential to be used as a water disposal well in the future. Drilling and evaluation of the Khurbet East No.8 well is expected to take approximately 45 days. The results of this well are planned to be included in the independent reserves evaluation currently being conducted and expected to be completed in the second quarter of 2009.




Khurbet East Field Production




The Khurbet East field is producing at an average oil rate of approximately 10,500 barrels per day from 5 wells (2 vertical and 3 horizontal producers) with cumulative oil production from the field in excess of 2 million barrels. Only trace water has been produced to date and the field oil production rate has been reduced from previously reported levels as part of a reservoir management strategy to extend this period of water-free production.




The previously announced project to expand the processing capacity of the early production facility to 18,000 barrels per day is underway and is now expected to be completed by the end of the first half of 2009. Three additional production wells are planned to be drilled, following Khurbet East No.8, to deliver additional production for the expanded facilities capacity without requiring increased production from existing wells.




3D Seismic Data Acquisition




Acquisition of the 640 square kilometre 3D seismic survey, around the existing Khurbet East and Naour West 3D seismic surveys, is proceeding well with approximately 30% of the survey completed to date. The survey is intended to assist in the further exploration of the new exploration play demonstrated by the Yousefieh discovery.






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


We are pleased with the continued progress in Block 26, including the continued excellent production performance in the Khurbet East field. The advances in the appraisal of the Yousefieh discovery will assist in determining whether additional capacity may be required in the Khurbet East full field facilities to allow for an incremental development of Yousefieh through this facility.'

cyril

Just gone long cyril.

Pro TA Tipster Zak Mir as just given out this analysis..

Zak Mir

Reged: 28/06/07
Posts: 661
Re: Emerald Energy (EEN).
#440308 - 25/02/09 08:45 AM Edit Reply Quote



This month's golden cross between the 50 / 200 day moving averages suggests that while above the 50 day moving average at 386p the upside here could be an October resistance line projection at 465p

GF this is a very good company which has just joined the FTSE250,plenty of cash in the coffers and some great assets, with a couple of realy exciting projects inColunbia as well as Syria which seems to be the major factor in the present SP?
cyril

Chart looks very strong aswell cyril.

Broker Note from late yesterday..

Emerald Energy PLC

FORECASTS
2008 2009
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Evolution Securities Ltd
24-02-09 BUY 36.30 41.89 10.04 12.62

2008 2009
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 36.30 41.89 10.04 12.62
1 Month Change 3.06 3.53 0.85 1.06
3 Month Change 10.86 12.53 -27.71 -34.94


GROWTH
2007 (A) 2008 (E) 2009 (E)

Norm. EPS 18.13% 207.34% -69.86%
DPS % % %

INVESTMENT RATIOS
2007 (A) 2008 (E) 2009 (E)

EBITDA 9.10m 41.60m 25.11m

EBIT 9.05m m m

Dividend Yield % % %

Dividend Cover x x x

PER 30.04x 9.78x 32.44x

PEG 1.66f 0.05f -0.46f

Net Asset Value PS 65.52p 184.71p 207.45p

RNS Number : 2878O
Emerald Energy PLC
04 March 2009



Emerald Energy Plc




4 March 2009




Operations Update - Syria, Block 26




Emerald Energy Plc ('Emerald' or the 'Company') would like to advise that Gulfsands Petroleum Plc ('Gulfsands'), the Operator in Block 26, Syria, will today host an analyst presentation which will include technical aspects of the Block 26 asset. A copy of their presentation will be available on the Gulfsands website (www.gulfsands.com). The presentation will contain the following new information which has not previously been announced.




Khurbet East No.8 Well Spud




Drilling operations have commenced on the Khurbet East No.8 delineation well in the Khurbet East Field. The well is designed to provide geologic information on the southern limits of the Khurbet East Field, establish the oil-water contact and to have the potential to be used as a water disposal well in the future. The Khurbet East No.8 well is expected to take approximately 45 days to drill and evaluate.




Yousefieh Preliminary Volumetrics




Based on a preliminary evaluation of the data acquired in the Yousefieh No.1 discovery well and the Yousefieh No.2 appraisal well, Gulfsands estimates the range of oil initially in place, on a gross basis at stock tank conditions, to be 27.2 (P90), 48.5 (P50) and 73.9 (P10) million barrels. Further work is required to determine the expected range of recovery factors and, hence, recoverable reserves.




The Operator plans to submit a commerciality application for the Yousefieh discovery and, in the third quarter of 2009, to drill a second appraisal well.




Khurbet East Field Production and Development




Gross oil production from the Khurbet East field averaged 8,470 barrels per day during the 163 day period between commencement of production and the end of 2008 (unaudited). The average sale price during this period was US$ 61 per barrel (unaudited).




During 2009, Gulfsands expects gross oil production to average between 12,500 and 13,000 barrels per day with a rate at the end of the year of approximately 16,000 barrels per day. Gross development capital expenditure is expected to be US$ 37 million, consisting of 4 development wells (Khurbet East Nos. 8, 9, 10 and 11 at a total cost of US$ 14 million), full field development facilities for Khurbet East (US$ 20 million) and miscellaneous items (US$ 3.5 million). The total cost of the full field development facilities for Khurbet East, to be incurred in 2009 and 2010, is estimated to be in the range of US$ 45 to 50 million. The Operator estimates that the Khurbet East field may be fully developed with a total of 15 production wells, including the existing 5 wells currently on production and 3 production wells expected to be drilled in 2009.




Exploration Activities




Gulfsands expects gross exploration and appraisal capital expenditure in 2009 to be approximately US$ 22 million, consisting of 3 wells (Yousefieh No.2, Yousefieh No.3, and one further exploration well at a total cost of US$ 12 million) and the 3D seismic survey currently being acquired (US$ 10 million).




The area of the 3D seismic survey has been increased to approximately 850 square kilometres to tie into existing 3D seismic surveys in the area and to assist in better understanding the new exploration play demonstrated by the Yousefieh discovery.

6 March 2009


Drilling Operations Commence in the Jacaranda Block, Colombia


Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the
following update on operations in Colombia.


Drilling operations have commenced on the Jacinto No.1 exploration well in the
Jacaranda block in the Llanos basin in Colombia. Emerald has a 100% working
interest in the Jacaranda contract, awarded by the National Hydrocarbon Agency
of Colombia ("ANH").


The Jacinto No.1 well is designed to evaluate the potential of a stratigraphic
exploration target in the Tertiary aged Carbonera formation. The Company
estimates that the Jacinto prospect, if successful, may contain unrisked
prospective resources of approximately 10 million barrels.


The Jacinto No.1 well is expected to have a total drilling depth of
approximately 6,400 feet and take approximately five weeks to drill and
evaluate.


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


"We are very pleased to have started our first exploration well in 2009 and look
forward to the results of drilling on this low cost and potentially high impact
prospect."

cyril

6 March 2009


Drilling Operations Commence in the Jacaranda Block, Colombia


Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the
following update on operations in Colombia.


Drilling operations have commenced on the Jacinto No.1 exploration well in the
Jacaranda block in the Llanos basin in Colombia. Emerald has a 100% working
interest in the Jacaranda contract, awarded by the National Hydrocarbon Agency
of Colombia ("ANH").


The Jacinto No.1 well is designed to evaluate the potential of a stratigraphic
exploration target in the Tertiary aged Carbonera formation. The Company
estimates that the Jacinto prospect, if successful, may contain unrisked
prospective resources of approximately 10 million barrels.


The Jacinto No.1 well is expected to have a total drilling depth of
approximately 6,400 feet and take approximately five weeks to drill and
evaluate.


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


"We are very pleased to have started our first exploration well in 2009 and look
forward to the results of drilling on this low cost and potentially high impact
prospect."

cyril

Emerald profits soar
MoneyAM
Emerald Energy posted EBITDA of $66m for 2008, up from $28m, with profit after tax of $36m.

The company had cash and cash equivalents of $74m at 31st December 2008 (2007: $40m).

The Directors do not recommend payment of an ordinary dividend.

emerald said the completion of the Gigante No.2 development well in Colombia and the expansion of the Khurbet East field facilities in Syria are expected to lead to a material increase in production before the end of 2009.

Appraisal activities in the Yousefieh field in Syria and the Capella field in Colombia may lead to further increases in production prior to the end of 2009.

Emerald said its business plan for 2009 was supported by strong balance sheet and cash flow generation from producing assets in Colombia and Syria.

Alastair Beardsall, Executive Chairman, said: 'The volatility of the oil price seen in 2008 has now moderated but we now face the uncertainty of the impact from the slowing global economy. These events, whilst unsettling for many in the short term, will not affect our short term plans or longer term aspirations.

HIGHLIGHTS OPERATIONS
Commencement of production from the Khurbet East field in Block 26, Syria, on 21 July 2008 with gross production of 1.414 mmbbl of oil (0.417 mmbbl Emerald net entitlement) by the end of 2008;

Discovery of the Yousefieh field in Block 26, Syria;

Discovery of the Capella field in the Ombu block in Colombia, with gross Proved plus Probable reserves of 14.835 mmbbl of oil (12.550 mmbbl Emerald net entitlement) and gross best estimate contingent resources of 42.165 mmbbl of oil (35.672 Emerald net entitlement);

Proved plus Probable working interest reserve addition of 15.004 mmbbl (before deduction of 1.613 mmbbl production);

Working interest production of 4,407 bopd (2007: 2,274 bopd) with Emerald net entitlement of 3,385 bopd (2007: 2,038 bopd).

FINANCIAL

EBITDA of $66 million (2007: $28 million);

Profit after tax of $36 million (2007: $7 million);

Cash and cash equivalents of $74 million as at 31 December 2008 (2007: $40 million).

OUTLOOK

Completion of the Gigante No.2 development well in Colombia and the expansion of the Khurbet East field facilities in Syria expected to lead to a material increase in production before the end of 2009;

Appraisal activities in the Yousefieh field in Syria and the Capella field in Colombia may lead to further increases in production prior to the end of 2009;

Exploration drilling in Block 26, Syria, and in the Gigante No.2 well and two ANH licenses in Colombia, may provide material reserve upside;

Business plan for 2009 supported by strong balance sheet and cash flow generation from producing assets in Colombia and Syria.

Ombu Exploration & Production Contract




Emerald 90% operated working interest (no third party back-in rights);

Contract awarded by the ANH in December 2006 with an exploration period of up to 6 years and exploitation period of up to 24 years for each discovered field;

Third exploration phase with a commitment to drill one well ends in November 2009;

Area of 300 sq km.




The Ombu block lies in the Caguan Putumayo basin to the southwest of the Llanos Basin. Emerald was awarded the contract with 100% working interest and operatorship. Prior to drilling the first exploration well, the Company entered into a farmout agreement under which Canacol Energy Inc. earned a 10% working interest, subject to the approval of the ANH, by paying 100% of the cost of the drilling and production testing of the Capella No.1 well.




The Capella No.1 exploration well was drilled to a total depth of 3,802 feet, discovered oil of approximately 10 API gravity in two intervals in the target Eocene aged Mirador formation, and was flow tested at a combined oil rate of 240 bopd. The lower interval tested at a stabilised rate of approximately 155 bopd with a water cut of approximately 15% over a 6 day period. The upper interval tested at a stabilised rate of approximately 85 bopd with only traces of water over a 4 day period.




The Capella No.2 well, located approximately 1.3 km southwest of Capella No.1, was drilled to a total depth of 3,550 feet, also encountered oil in two intervals in the Mirador reservoir, and was flow tested at a combined oil rate of 345 bopd. The lower interval was flow tested at stabilised rate of approximately 145 bopd with a water cut of approximately 4%. The upper interval flow tested at a stabilised rate of approximately 200 bopd with a water cut of approximately 10% over a period of 2 days.




Capella No.3, the first deviated well drilled in the block, was drilled from a surface location adjacent to the Capella No.1 and penetrated the reservoir approximately 340 metres away. The lower Mirador reservoir was flow tested at a rate of approximately 135 bopd with a water cut of approximately 8%. The upper Mirador reservoir was encountered with similar thickness and petrophysical properties as in the previous wells but was not flow tested.




The Capella No.4 vertical well was drilled approximately 1.6 kilometres to the southwest of the Capella No.1 location and both of the Mirador reservoir intervals were encountered with the upper interval in this well being thinner than in previous wells. However, poor cementing within the well bore, resulted in neither of the Mirador intervals being effectively flow tested.




The Capella No.5 well, located some 3.4 kilometres to the northeast of Capella No.1, also encountered both Mirador reservoirs. The lower Mirador reservoir was flow tested at an average rate of approximately 82 bopd with a water cut of approximately 52% and the upper Mirador reservoir was flow tested at an average rate of approximately 26 bopd with a water cut of approximately 4%.




The intervals flow tested to date in the first five wells drilled have flowed heavy oil in the range of approximately 9 to 11 API gravity. The Company plans to drill up to a further two wells in 2009 and to complete extended production testing of all the wells as part of the appraisal of the southern part of the Capella structure. Extended production testing of Capella wells commenced in February 2009 with an average daily production rate of approximately 400 bopd, comprising of contributions from the Capella No.1 and Capella No.2 wells, and with the water cut for the field steadily reducing to a level of approximately 6%.




Following the environmental permitting of the northern half of the structure, the Company plans further delineation drilling. If Emerald elects to enter the fourth exploration phase, the minimum work programme will include the drilling of one exploration well by November 2010.




An independent resource and reserve evaluation of the Capella structure was conducted by Netherland, Sewell & Associates, Inc ('NSAI') using SPE guidelines. In evaluating the oil in place, NSAI considered two cases; the low (P90) case considered the area of approximately 3,500 acres investigated by the first five wells drilled, and the high (P10) case considered the area of the full structure of approximately 22,000 acres. For these cases, NSAI estimated gross stock tank oil initially in place to be 245 and 1,111 million barrels respectively. NSAI estimated the gross recoverable resource, consisting of reserves plus contingent resources, to be 26.5 million barrels in the low (P90) case and 122.5 million barrels in the high (P10) case. NSAI used a lognormal distribution, commonly used in geological estimation, in determining the P50 gross resource estimate to be 57 million barrels.




For determining the proportion of the above mentioned resources to be classified as reserves, NSAI considered only potential drilling locations up to three well spacings away from the existing five wells, equivalent to a developed area of up to approximately 4,000 acres. The resultant gross reserves distribution is estimated to be 7.3 (Proved), 14.8 (Proved plus Probable), and 23.0 (Proved plus Probable plus Possible) million barrels.


By subtraction of the reserves from recoverable resources NSAI estimates the gross contingent resource of the Capella structure to be 19.2 (low estimate), 42.2 (best estimate), and 99.5 (high estimate) million barrels.