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

RNS Number:2782N
Emerald Energy PLC
05 February 2008

Emerald Energy Plc

5 February 2008


Khurbet East Field Development, Block 26, Syria


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

Field Development :

The Syrian Ministry of Oil and Mineral Resources and the Syrian Petroleum
Company have granted approval for commercial development of the Khurbet East
Field.

Field development is intended to commence immediately and establish early
production from the shallow Cretaceous Massive reservoir ("Massive Reservoir")
as soon as an Early Production Facility ("EPF") can be installed at Khurbet East
field.

An EPF capable of processing some 10,000 barrels per day is expected to
be operational by the fourth quarter of 2008 and to be followed by the Full
Field Development ("FFD") facility installation.

Engineering and construction ofthe EPF is scheduled to commence this quarter. Production through the EPF will provide valuable information about reservoir performance that will be used to optimise the design of the FFD facilities.

The Company's share of costs for the first phase of development, consisting of
the construction and installation of the EPF and the drilling of up to three
wells, is planned to be met from the Company's cash flow.

The FFD costs,including future development wells within the Massive Reservoir,
are anticipated to be met from the cash flows expected to be generated
by early production from the field.

The Khurbet East oil field was discovered in the second quarter of 2007 with the
Khurbet East No.1 well which recovered an oil sample from the Massive Reservoir.

Two appraisal wells have since been drilled and tested, with Khurbet East No.2
flowing 710 barrels of oil per day from a 10 metre section and Khurbet East No.3
flowing 3,420 barrels of oil per day from the full section of the Massive
Reservoir.


Reserves :

An independent estimate of the petroleum reserves of the Khurbet East field has
been completed by RPS Energy Ltd ("RPS") of London. The standard used by RPS in
preparing its estimate was the resource definitions jointly set out by the
Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the
American Association of Petroleum Geologists (AAPG) and the Society of Petroleum
Evaluation Engineers (SPEE) in April 2007 in a document entitled "Petroleum
Resources Management System" (PRMS).

The gross life-of-field Proved plus Probable Reserves of oil contained in the
Massive Reservoir are estimated to be 65.6 million barrels as at 31 December
2007.

The Company's has a 50% working interest in the Contractor group.
Under the terms of the Contract, the net entitlement Proved plus Probable Reserves of oil attributable to the Company, based on the oil futures price
of 4th of January 2008, is 11.3 million barrels after the application of royalties
and other terms of the Contract including the apportionment of Cost Recovery Crude Oil and Production Sharing Crude Oil.

The Company's liability for income taxes in Syria, related to the Khurbet East
field, is paid on behalf of the Company out of revenue from the Syrian Petroleum Company's share of oil produced from the field.


Emeralds' Chief Executive Officer, Angus MacAskill, said:

"We are delighted to receive approval for the commercial development of the
Khurbet East field and also with the results of the independent reserves
evaluation for the Massive formation.

We have been very pleased by the excellent co-operation and support that has been received from both the Syrian Government and Syrian Petroleum Company and we look forward to our future partnership in the joint operating company."

Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNG
Overseas Ltd.



Enquiries: Lisa Hibberd 020 7925 2440

Notes :

1. Reserves are those quantities of petroleum anticipated to be commercially
recoverable by application of development projects to known accumulations from a
given date forward under defined conditions.

2. Proved Reserves are those quantities of petroleum, which, by analysis of
geoscience and engineering data, can be estimated with reasonable certainty to
be commercially recoverable, from a given date forward, from known reservoirs
and under defined economic conditions, operating methods, and government
regulations.

3. Probable Reserves are those additional Reserves which analysis of
geoscience and engineering data indicate are less likely to be recovered than
Proved Reserves. It is equally likely that actual remaining quantities recovered
will be greater than or less than the sum of the estimated Proved plus Probable
Reserves (2P).
In this context, when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate.

4. Full reserve category definitions and guidelines are documented in the
PRMS on the SPE website at
http://www.spe.org/spe-app/spe/industry/reserves/prms.htm

Am i reading it wrong or are they suggesting the field only has a probable life of 2 years...?

The reserves are from the Massive Reservoir only, and at 10,000bopd against the
reserves of 65mbo gives by my working its 21 years for 300days a year production?
After tax'es its worth 11.3mbo or about 29%, if used as a rule of thumb against
output of 10,000bopd thats 2,900bopd worth say $80,so would be worth around
35m to EEN for 300 days production. And these reserves will grow,add to it
their Colombian output(reserves) and you have very impressive revenue,so i'm
surprised at the small mark up this am and feel these are a very good investment.
I can see the SP rising over the coming year to well above 3? It just has to be
given serious consideration for anyones portfolio.
aimo
cyril

Gulfsands Petroleum Emeralds partener in Block 26 Syria RNS



Khurbet East Development Approval
Date : 05/02/2008 @ 07:03
Source : UK Regulatory (RNS and others)
Stock : Gulfsands Petroleum Plc (GPX)



Khurbet East Development Approval


Khurbet East Development Approval
Gulfsands Petroleum plc
Gulfsands to develop Khurbet East Oil Discovery
Khurbet East Field
Reserves estimate completed for the Massive ReservoirLondon, 5th
February, 2008: Gulfsands Petroleum plc ("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and gas production, exploration and development company with activities in the U.S.A., Syria and Iraq is pleased to
announce that the Company has received approval from the Syrian Ministry of
Oil and Mineral Resources and the Syrian Petroleum Company ("SPC") for
commercial development of the Khurbet East Field.Development of the Cretaceous Massive Reservoir ("Massive Reservoir") within the Field will commence immediately.

The Khurbet East Oil Field is within Block 26 in North East Syria. Gulfsands is
the operator, on behalf of the Block 26 Contractor group ("Contractor"), and owns a 50% working interest in Block 26 subject to the terms of the Contract
for the Exploration and Development and Production of Petroleum for Block 26
(the "Contract"). A map and details of the Khurbet East Oil Field are available on the Company's website: www.gulfsands.net.

The Company has also received the first Reserves report for the Massive Reservoir in the Khurbet East Field which estimates gross life-of-field Proved and Probable ("2P") Reserves of the Massive Reservoir as 66 million barrels of oil and gross life-of-field Proved, Probable and Possible ("3P") Reserves as 143 million barrels of oil.Gulfsands' share of net attributable reserves is explained below in the section of this announcement headed "Khurbet East Reserves".

Reserves estimates for the Butmah Formation and the Kurrachine Dolomite reservoirs discovered in the KHE-1 well will be made once further drilling and appraisal work has been completed.

The Reserves report was prepared by independent consultants, RPS Energy Ltd. ("RPS") of London.The standard used by RPS in preparing its Reserves report was the SPE/WPC/AAPG/SPEE Petroleum Resources Management System (SPE-PRMS).
The Khurbet East Oil Field was discovered in the second quarter of 2007 with the KHE-1 well. Two appraisal wells, KHE-2 and KHE-3 havesince been drilled in the Field.

The KHE-3 well flowed oil to surface on drill-stem test at an average stabilized rate of 3,420 barrels of oil per day ("bopd").

Initial Development PlanGulfsands and its partners intend to commence Field development immediately and establish early production from the shallow Massive Reservoir as soon as an Early Production Facility ("EPF") can be installed at the site, and prior to any further appraisal of the Triassic discoveries within the Khurbet East Field.

The Company expects that an EPF capable of producing some 10,000 bopd can be operational by the fourth quarter of 2008 and will be followed by the Full Field Development ("FFD") facility installation in 2009.

Production through the EPF will provide valuable information about reservoir performance that will be integrated into the design of the FFD facilities as well as generate cash flow. Engineering and construction of the EPF is scheduled to commence this quarter with drilling of the first development well expected to commence shortly.

Initial modeling of the Massive Reservoir shows that horizontal wells should provide the most efficient production method in the Field.

Utilizing horizontal wells, the Company expects that the FFD facility will be designed to produce some 30,000-40,000 bopd.

As a consequence of the substantial SPC infrastructure already available in close proximity to the Khurbet East Field and the excellent working relationship the Company enjoys with SPC which has extended to invaluable assistance with the development of the EPF, the estimated costs for the EPF, which includes the drilling of three wells and construction of facilities, are not expected to exceed $10 million,or a net $5 million to Gulfsands.

The Company further anticipates that the FFD costs, including all future development wells within the Massive Reservoir, can be met from the substantial cash flows expected to be generated by early production from the Field.
Khurbet East Reserves

Gulfsands commissioned RPS in London to provide an independent Proved, Probable and Possible Reserves report of the Massive Reservoir in the Khurbet East Field as of 31 December 2007. RPS estimated gross life-of-field 2P Reserves of the Massive Reservoir as 66 million barrels of oil with gross life-of-field 3P Reserves totaling 143 million barrels of oil (see note 1 below).

These Reserves are subject to the terms of the Contract in which Gulfsands owns a 50% working interest.

The net barrels recoverable and attributable to the Contractor and to Gulfsands (as to its 50% share) have been calculated by reference to the terms of the Contract which call for a royalty to be paid to the Government of the Syrian Arab Republic and an after tax profit share of the oil produced, to be provided to Gulfsands.

The Contractor is also entitled to recover its costs through a cost recovery pooling of revenues from production.

The fiscal terms of the Contract are referred to in the Company's corporate
presentation which is available on the Company's website.

The Contractor's net attributable (after royalties, taxes and government share) 2P Reserves are estimated at 22.5 million barrels of oil.

The Contractor's 3P Reserves have been estimated as 44.8 million barrels of oil.
Therefore, Gulfsands net attributable (after royalties, taxes and government share) 2P Reserves have been estimated as 11.3 million barrels of oil and net attributable (after royalties, taxes and government share) 3P Reserves have been estimated as 22.4 million barrels of oil.

The RPS Reserves report related only to the Reserves estimates for the Massive Reservoir and a full Reserve report will be carried out on both the Triassic Butmah and Triassic Kurrachine Dolomite Formations upon appraisal of these formations which is expected to commence in the second half of 2008 following first production from the Massive Reservoir.

Until the appraisal of the Triassic reservoirs is completed and a development plan prepared, these formations have been classified as containing Contingent Resources.Additionally, the Reserves estimate for the Massive Reservoir will be updated annually or more frequently if appropriate.

Gulfsands' CEO, John Dorrier, said:"We are very pleased to have received rapid approval for commercial development of the Khurbet East Field from the Syrian Government.

With the active cooperation and support of the Oil Ministry and SPC, the
Company and its partners will proceed immediately with development activities and seek to achieve early production from the Field by the fourth quarter of
2008.

We are also very pleased to confirm a substantial reserves estimate for the
Khurbet East Field at this early stage of Field appraisal following the
excellent results obtained in the first three wells in the Field."Notes:(1) RPS based its estimate of reserves on the resource definitions jointly set out by the Society of Petroleum Engineers (SPE), the World Petroleum Congress (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE) in April 2007 in a document entitled "Petroleum Resources Management System" (PRMS).

Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions.

Proved Reserves are those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations.

Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.

Possible Reserves are those additional Reserves which analysis of geoscience and engineering indicate are less likely to be recoverable than Probable Reserves.

This release has been approved by Jason Oden, Gulfsands Exploration Manager, who has a Bachelor of Science degree in Geophysics with 23 years of experience in petroleum exploration and management and is registered as a Professional Geophysicist.

This release has also been approved by Rick Bresler, Gulfsands Vice President of Project Engineering, who has a Bachelor of Science degree in Chemical Engineering with 29 years of experience in petroleum facilities design and construction.

Mr.Oden and Mr. Bresler have consented to the inclusion of the technical
information in this release in the form and context in which it appears.

ABOUT GULFSANDS:Syria Gulfsands owns a 50% working interest and is operator of Block 26 in North East Syria. Block 26 covers approximately 8,250 square
kilometres and encompasses existing fields which currently produce over 100,000
barrels of oil per day.

These fields are operated mainly by the Syria Petroleum Company.

In the first half of 2007 Gulfsands announced an oil and gas discovery on Block 26 called Khurbet East.

This discovery is currently under appraisal with development to commence in 2008 with first production targeted for the fourth quarter of 2008.

On 23 August 2007, the Company initiated the first extension period of exploration on Block 26 for a further period of three years.The Company has also formed a strategic partnership with Cham Holding for acquiring oil and gas projects in Syria and Iraq.

Butmah and Kurrachine reserviors reserves to be added after more appraisal,just
gets better and this is only one area of Block 26?
cyril

yes, sorry was doing calcs in my head, 20 years, not 2, ah the ole decimal point...!!

Emerald Energy to begin commercial development of Khurbet East Field, Syria




LONDON (Thomson Financial) - Emerald Energy PLC said it intends to start
commercial development of the Khurbet East Field in Block 26, Syria.
An early production facility capable of processing some 10,000 barrels per
day is expected to be operational by the fourth quarter of 2008 and to be
followed by the full field development facility installation.
Emerald holds a 50 pct interest in Block 26 through its fully owned
subsidiary SNG Overseas Ltd.

Big Ted;
Correction myself 10,000bopd should be halved so the 35m becomes 17.5m.
cyril

Yes Guys !, this should be heading during the spring up to the 3 mark !

slide 18

Based on US$75/barrel realised oil price and gross daily production ≤25,000 bbls/day

The Block 26 Contractor Group (Gulfsands 50% and Emerald 50%) is entitled to recovery of all SPC approved exploration, development and operating costs

Exploration and operating costs are fully recoverable within acalendar year

Development capital cost recovery is capped at 25% per year (i.e. 100% of capital costs recovered after 4 years)

For example, based on a US$75/barrel realised oil price, the Contractor Group will receive in ~US$44/barrel of revenue per barrel of produced oil while costs are being recovered

After costs have been recovered, Contractor Group revenue is ~$23/barrel of produced oil


http://www.gulfsands.net/i/pdf/20071024_CorpPresentation.pdf

DFGO, what is your estimate of recoverable costs that they can reclaim?
tia
cyril

DFGO, at the figures from your previous post, i see my calcs of 17.5m are quite
close,from the $23/barrel(assuming thats after tax)?
5000*23/2=57,000*300= 17.25m
5000*44/2= 110,000 a day (until costs recovered)
cyril

"Oil explorer Emerald Energy is wanted today after receiving permission from the Syrian authorities to develop the Khurbet East Field in Block 26. Emerald owns a 50% stake in Block 26 through its subsidiary, SNG Overseas.

Work on developing the field will start immediately with a view to establishing early production from the shallow Cretaceous Massive reservoir. The company is aiming to have an Early Production Facility capable of processing 10,000 barrels per day up and running by the end of 2008.

The companys share of the cost of setting up the first phase of development will be met from Emeralds existing cash flow.

The gross life-of-field Proved plus Probable Reserves of oil contained in the Massive Reservoir were estimated to be 65.6m barrels as at 31 December 2007."

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=1899448

niceonecyril

It is also important to consider the fact that the net estimated 2P reserve of
11.5mmboe attributed to Emerald are HIGHLY VALUABLE PROFIT BARRELS sold by
Emerald without any further goverment deductions such as tax

copied from advfn


New Evolution Broker Note on EEN :

http://www.mediafire.com/?ejljnz0z02i

enjoy !!

As long as the markets treat us favourably, (never know what the general trend is going to be !), a little bit of good spudding news (new well being drilled), coupled with stable 4000 barrels per day in Columbia, there could be a steady upwards trend, up to a (I'm guessing) 2.5 base, with a further probable climb up to the 3 area later in the year, here's hoping, by the way thanks for all the info DFGO, Niceonecyril, cheers !.

Euhhh.. Guys check out MRS... , possibly somethings up... not sure what ?

Oilbarrel 06.02.2008
Gulfsands Petroleum Targets First Production From Syria By Q4 2007

Shares in Gulfsands Petroleum enjoyed a healthy bounce on Tuesday as the company announced it was all systems go in Syria where the authorities appear to have matched the AIM firm in efficiency and speed. It was only last month that Gulfsands completed the second appraisal well on the Khurbet East field in Block 26 in the northeast of the country; this week the Syrian Ministry of Oil & Mineral Resources and state oil company SPC gave their approval to the development of the field.

This is good news for Gulfsands and its 50/50 partner Emerald Energy. It vindicates their decision to enter the Middle East country (Gulfsands signed up in 2003 and was joined by Emerald in 2005), to stick with exploration despite a couple of disappointing wells and to seek further investment opportunities in the country. KHE-1, drilled in the second quarter of 2007, was a multi-zone discovery flowing 35-degree API oil from the Triassic-aged Kurrachine Dolomites, natural gas from the Triassic-aged Butmah reservoir and 24-degree API oil from the shallower Cretaceous-aged Massive Formation. A follow-up well, KHE-2, confirmed the presence of a high quality reservoir in the Massive capable of high production rates, while the recently drilled KHE-3 confirmed that capability, testing at 3,420 bpd of 26-degree API oil from the Massive Formation.

The initial development of the field will target only the Massive reservoir, which is reckoned to hold gross 2P reserves of 66 million barrels of oil and 3P reserves of 143 million barrels of oil. CEO John Dorrier said he was very pleased to confirm this substantial reserves estimate for the field. There is additional potential in the Butmah Formation and the Kurrachine Dolomite reservoirs encountered in the original discovery well of 2007 but these will be appraised in the second half of 2008.

The partners are pursuing the Massive formation before getting to grips with the deeper zones because this will be the easiest, cheapest and fastest way to commercialise the discovery. The Massive formation is well understood in the area and this crude quality can be easily transported in the existing nearby infrastructure. The Massive is also relatively shallow so drilling costs can be kept down and the relatively low gas-to-oil ratio means there is no need for gas handling or transportation. Whats more, the construction of production facilities for the Massive should reduce costs when Gulfsands comes to exploit Khurbet Easts deeper reservoirs.

Gulfsands now plans to fast-track the development by using three horizontal wells and an early production system (EPS). It hopes to get a 10,000-bpd-capacity EPS up and running by the fourth quarter of this year, less than two years after discovery, with a full field development facility in place the following year with a production capacity of 30-40,000 bpd. The benefit of the EPS is that it will provide valuable information about reservoir performance to help design the full field facilities as well as generating cash flows to pay for the full field development. The estimated cost of the EPS, including the three wells, is US$10 million (US$5 million net to Gulfsands). Project economics are helped by location: Khurbet East lies within 12 km of the Souedieh and Rumeilan oilfields and the oil export pipeline runs directly through the field. Whats more, Gulfsands has the right to access the surface facilities and pipelines at an agreed tariff of 75 cents a barrel.

Gulfsands and Emerald are entitled to recover all their costs within four years, with development capital cost recovery coming from a 50 per cent share of the post-royalty oil production (the royalty is a fairly typical 12.5 per cent). Following cost recovery, Gulfsands and Emerald will have 50 per cent of the profit oil share. This means, based on an oil price of US$75 a barrel, the London-listed firms will receive US$44 per barrel of produced oil while costs are being recovered and thereafter around US$23 per barrel of produced oil.

The good news here is that the two companies appear to have plenty of other prospects to target in the vicinity of Khurbet East not to mention those deeper Triassic reservoirs to extract maximum value from any capital investments in processing infrastructure. The company has identified a Khurvet East play fairway, which it intends to chase down through exploration drilling over this year and next year. Given the readiness of the Syrian authorities to work quickly with its Western partners to greenlight new developments and provide access to infrastructure, this could be a start of a beautiful relationship.

Tiddler to watch

Gulf Sands Petroleum rose 10p to 175p after it and Emerald Energy, up 7p at 218p, declared 66 million barrels of proved and probable oil reserves at their jointly owned Syrian field, with production by the end of the year. Seymour Pierce has a 246p target on Gulf Sands, while Evolution raised its Emerald target to 420p.

http://business.timesonline.co.uk/tol/business/markets/article3316058.ece

Gulfsands given go-ahead over Syrian oilfield
By Toby Shelley

Published: February 5 2008 19:25 | Last updated: February 5 2008 19:25

Gulfsands Petroleum expects to push ahead with production in Syria by the end of the year following approval from the Damascus government of development of the countrys Khurbet East oil field.

The go-ahead from the Syrian government on Tuesday helped boost shares in Gulfsands and Emerald Energy, its partner in the development consortium. Gulfsands share price rose 10p to 175p on Tuesday while shares in Emerald closed up 7p at 218p.

An initial production facility will pump about 10,000 barrels a day of crude, half of it attributable to the Aim-listed company. Cash flow from early production will help finance Gulfsands share of full development of the field in 2009 as production builds to 40,000 b/d.

Khurbet East, which is estimated to have proven and probable reserves of 66m barrels, of which 11.3m barrels is attributable to each of Gulfsands and Emerald after royalties, taxes and the Syrian governments share are taken into account.

Further small discoveries have been made in the vicinity and they will be appraised in the second half of the year. Analysts at Seymour Pierce said these were likely to boost the reserves to 80m barrels with further upside possible from nearby prospects.

The cost to Gulfsands and Emerald of the early production system will be a modest $10m (5.1m) as the development will have access to the pipeline infrastructure of the state-owned Syrian Petroleum Company.

Damascus launched a block tender system for foreign oil companies in 2001 as a means of combating the countrys falling output. From a peak of 590,000 b/d in 1996, output fell to about 400,000 b/d in 2006, threatening the country with becoming an oil importer.

In 2003 Gulfsands became one of the first companies to win a share in a concession. In 2005, the year it listed on Aim, Gulfsands bought out its larger partner, Devon, and took over operational responsibility for the block.

Gulfsands current production is running at about 2,500 b/d, generated from US assets. It also has a memorandum of understanding with the Iraqi government to capture and market gas that is currently flared during oil production in part of southern Iraq. Emerald, meanwhile, currently produces about 3,600 b/d in Colombia.

http://www.ft.com/cms/s/0/2a4372c2-d41e-11dc-a8c6-0000779fd2ac.html