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 10% partener in Ombu Block, Capella Heavy Oil Discovery in Colombia



Canacol Energy Ltd. Announces Update of Drilling Program at Its Capella Heavy Oil Discovery in Colombia


April 6, 2009 11:41 AM EDT


CALGARY, ALBERTA--(Marketwire - April 6, 2009) - Canacol Energy Ltd. (TSX VENTURE: CNE) ("Canacol" or the "Corporation") is pleased to provide an update of its exploration and appraisal drilling program to date on its 300 square kilometer Ombu E&P contract in the Caguan Putumayo Basin in Colombia. On July 9, 2008, the Corporation entered into a farm-out agreement with Emerald Energy Plc. ("Emerald"), the operator of the contract, earning a 10% working interest, subject to the approval of the ANH, by paying 100% of the cost of the drilling and testing of the Capella 1 well.

To date, 5 wells have been drilled and 1 further well, Capella 6,is being drilled and completed, covering an area of approximately 30 square kilometres within the southern part of the Capella discovery. Using the oil column height information obtained from the wells, and the structural interpretation derived from the existing 2D seismic, the accumulation has a mapped area of approximately 89 square kilometres (22,000 acres). Following the environmental permitting of the northern half of the structure later in 2009, the operator plans further delineation drilling.

Charle Gamba, President and CEO of Canacol, stated "We are pleased with the positive drilling and production test results obtained to date from the Capella discovery. The large areal extent of the structure represents a significant accumulation of heavy oil at Capella. We are looking forward to completion of the drilling program in the southern part of the field shortly, and the future appraisal of the northern part of the field later this year."

The Capella 1 vertical exploration well was drilled to a total depth of 3,802 feet on July 30, 2008, encountering oil of approximately 10 degrees API gravity in two sandstone reservoirs of the Eocene Mirador formation with a combined 189 feet of potential hydrocarbon bearing interval. Both reservoirs were tested using a progressive cavity pump, and flowed at a stabilized combined rate of 240 barrels of oil per day ("bopd"). The Capella 2 vertical well, located approximately 1.3 km southwest of Capella 1, was drilled to a total depth of 3,550 feet on 19th October, encountering approximately 163 feet of potential hydrocarbon pay within the same two reservoirs in the Mirador. Both reservoirs flow tested at a combined stabilized oil rate of 345 bopd. The Capella 3 well, the first deviated well drilled in the block, was drilled from a surface location adjacent to the Capella 1, penetrating the Mirador approximately 340 meters away, and reaching a total depth of 3,850 feet on November 26, 2008. The well encountered both reservoirs within the Mirador with net hydrocarbon intervals similar to those encountered in the other wells. The lower Mirador reservoir was flow tested at a rate of approximately 135 bopd of oil 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 4 vertical well was drilled approximately 1.6 kilometres to the southwest of the Capella 1 location, reaching a total depth of 3,545 feet on December 24, 2008. Both of the Mirador reservoirs were encountered with the upper reservoir in this well being thinner than in previous wells, with excellent oil and gas shows while drilling. Poor cementing within the well bore resulted in neither of the Mirador reservoirs being effectively flow tested. The operator is evaluating options with respect to remediating the well at some point in the future. The Capella 5 vertical well, located some 3.4 kilometres to the northeast of Capella 1, was drilled to a total depth of 3,314 feet on February 8, 2009, encountering both reservoirs within the Mirador with net hydrocarbon intervals similar to those encountered in the other wells. 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 Capella 6 vertical well, located some 3.6 kilometres to the south of Capella 1, is currently being drilled and completed. The operator plans to drill 1 additional well after testing of the Capella 6 well has been completed.

The 5 wells tested to date have flowed heavy oil in the range of 9 to 11 degrees API gravity at individual well rates of up to 345 bopd under cold flow conditions from predominantly vertical wells. Extended production testing of the Capella 1, 2, and 3 wells in February yielded stable production rates of 400 bopd, with the water cut for the field steadily reducing to a level of approximately 6%. The operator plans to complete extended production testing of all the wells as part of the appraisal of the southern part of the Capella structure. The field production rate is currently constrained by oil trucking and sales capacity, with the crude being sold to local markets. The operator is also planning to commence a cyclic steam injection pilot in one of the vertical wells this year in order to investigate the effects of thermal methods on increasing rate and recovery efficiency.

The Corporation has been made aware that Emerald has announced its updated reserve disclosure in relation to the Capella Field under its reporting requirements in accordance with UK laws, namely on pages 10 and 11 of Emerald's 2008 Annual Report and Accounts, which may be accessed via the Emerald Energy Plc. website. Readers are cautioned that these figures released by Emerald are prepared in accordance with Society of Petroleum Engineering Guidelines and are not in accordance with the Canadian requirements under National Instrument 51-101- Standards Of Disclosure For Oil And Gas Activities and therefore cannot be relied upon by the Corporation for disclosure. The Corporation has not at this time received its reserve update on the Capella Field from its reserve evaluator in accordance with National Instrument 51-101- Standards Of Disclosure For Oil And Gas Activities and therefore cannot release any reserve data. The Corporation anticipates release of such Capella Field reserve data in the near future.

Canacol is a Canadian based international oil and gas corporation with operations in Colombia, Brazil, Guyana, and Northern Ireland. Canacol is publicly traded on TSX Venture Exchange (TSX VENTURE: CNE). The Corporation's public filings may be found at www.sedar.com.

This press release may contain statements within the meaning of safe harbour provisions as defined under Securities Laws and Regulations. The above statements are based on the current expectations and beliefs of Canacol's management and are subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Canacol does not undertake any responsibility with regard to the accuracy of this press release nor the obligation to update the abovementioned information.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. A barrel of oil equivalent (boe) is derived by converting gas to oil in the ratio of six thousand cubic feet of gas to oil and may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, especially in various international jurisdictions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION PLEASE CONTACT:
Canacol Energy Ltd.
Mr. Brian Hearst
CFO
(403) 237-9925
Email: bhearst@canacolenergy.com

Source: Canacol Energy Ltd.

http://www.istockanalyst.com/article/viewiStockNews/articleid/3178946

cyril
please keep the following in header

http://www.emeraldenergy.com

http://www.investegate.co.uk/Article.aspx?id=200812220700095529K

http://www.investegate.co.uk/Article.aspx?id=200901260700092060M

http://www.investegate.co.uk/Article.aspx?id=200902110700131142N

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

http://www.emeraldenergy.com/documents/EEN2008Results.pdf

cyril
Emerald Energy plans a cyclic steam injection pilot in one well this year.


Large Caguan basin find shapes up in Colombia

By OGJ editors
HOUSTON, Apr. 6 -- Emerald Energy PLC and Canacol Energy Ltd., Calgary, are delineating what appears to be a large heavy oil discovery in Colombia's Caguan basin 200 miles south of Bogota.

Five wells have been drilled, a sixth is drilling, and a seventh is planned in the southern part of Capella, an accumulation of 9-11 gravity oil in the Eocene Mirador formation that appears from 2D seismic to cover 22,000 acres on the Ombu E&P contract area.

Delineation drilling is planned on the northern half of the structure later in 2009 after environmental permitting.

Emerald Energy said gross proved and probable reserves are 14.8 million bbl from estimated initial oil in place of 245 million to 1.1 billion bbl. The six existing wells are on the southern 7,400 acres of the structure. The first five wells found oil in both intervals.

Emerald Energy and Canacol hold 90% and 10% interest, respectively, in the 74,130-acre Ombu contract area, and Emerald Energy holds 100% working interest in the 27,181-acre Durillo contract area adjacent to and southwest of Ombu. Emerald Energy said Durillo may have potential in the same exploration play as Capella.

The vertical Capella-1 went to a total depth of 3,802 ft in mid-2008 and found 189 ft of potential hydrocarbon-bearing interval in two Mirador sandstones. The two tested at a combined 240 b/d oil progressive cavity pumps.

Emerald Energy plans a cyclic steam injection pilot in one well this year. The field production rate is constrained by oil trucking and sales capacity. The individual intervals tested at initial rates of 26-240 b/d of oil and stabilized at as much as 400 b/d on extended tests with water cut steadily declining to 6%.

http://www.ogj.com/display_article/358525/120/ARTCL/none/ExplD/1/Large-Caguan-basin-find-shapes-up-in-Colombia/

RNS Number : 6272Q
Emerald Energy PLC
15 April 2009

FOR IMMEDIATE RELEASE

15 April 2009

CONVERSION OF CONVERTIBLE BONDS

Emerald Energy Plc (the 'Company') is pleased to provide the following update:

The Company and Credit Suisse Securities (Europe) Limited ('Credit Suisse') have reached an agreement for the conversion of the entire outstanding principal amount of the Series B US$15,000,000 4.875 per cent. senior unsecured convertible bonds due 2013 (the 'Series B Bonds') into the Company's ordinary shares (the 'Ordinary Shares'). The Series B bonds which were issued in July 2007 are convertible into Ordinary Shares at a price of 270 pence per Ordinary Share at a fixed US dollar/sterling exchange rate of 2.0171.

Credit Suisse has agreed to exercise its right to convert all of the outstanding principal amount of the Series B Bonds into the Ordinary Shares, in consideration of which the Company has agreed to pay Credit Suisse an amount of US$914,062.50, equal to the interest payable on Series B Bonds for the period from and including 31 March 2009 to but excluding 30 June 2010.

The total number of Ordinary Shares issued to Credit Suisse on 15 April 2009 pursuant to conversion of the Series B bonds is 2,754,229. These Ordinary Shares are expected to be listed on the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange no later than 22 April 2009. Following this transaction, the issued share capital of the Company will be 62,440,373 Ordinary Shares.

The Series A US$15,000,000 5.875 per cent. senior unsecured convertible bonds due 2012 that were also issued in July 2007 remain in place.

Enquiries:

Emerald Energy Plc - Lisa Hibberd 020 7925 2440

CS. annouced just the other day they would sell $5billion of equity to pay back part e of the $10billion loan recieved from the USA goverment.Not sure this is relivent, but worth knowing.
cyril

CS. annouced just the other day they would sell $5billion of equity to pay back part e of the $10billion loan recieved from the USA goverment.Not sure this is relivent, but worth knowing.
cyril

Only duplicates today Cyril? Running out of carbon paper?! ;o)

Niceonecyril : you can ajust the speed of the click of the mouse...it depends whether you are using Microsoft or Apple software !, you need to refer to a dummy's guide or computer active manual !.....that might be the problem !.

I can't help but feel that there is about to be a pullback on this stock....the sp is really up with events...at the moment Gulfsands (GPX)(Aim) looks the better bet !.

required field

Emerald still under valued imo hardly anything in price for Colombia

GPX 118,552,500 ordinary shares in issue.
EEN 59,686,144 ordinary shares in issue.
as from 22/4/09 Emerald will have 62,440,373 Ordinary Shares in issue.

probably because you have everyone looking in the wrong country entirely!
Try ColOmbia

Did I mention a pullback ?....the sp has dived this afternoon and there could be more tomorrow morning !.

Operations Update (Emerald Energy)





TIDMEEN

RNS Number : 0147R
Emerald Energy PLC
23 April 2009

?
Emerald Energy Plc


23 April 2009


Operations Update - Syria, Block 26


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


Khurbet East No.8 Well


Khurbet East No.8, the delineation well located 2.7 kilometres to the south of
the Khurbet East No.1 well to investigate reservoir properties and the oil-water
contact in the south of the field, encountered a 23 metre gross oil column (15
metre net) within the Cretaceous Massive reservoir. The top of the reservoir was
encountered at 1,940 metres, approximately 18 metres shallower than the
pre-drill prediction.


Wireline logging indicated an average porosity in the net oil bearing interval
in excess of 23%. However, a definitive oil-water contact could not be
identified as the porous oil-bearing reservoir lies directly above a low
porosity and low permeability interval.


An open-hole flow test conducted over the full reservoir interval using nitrogen
injection artificial lift resulted in limited amounts of oil being produced to
surface, indicative of poorer reservoir quality in this location than
encountered in the central part of the field.


Following an acid stimulation operation on the open-hole reservoir section, the
well produced, using artificial lift, 23 degree API oil at an average rate of
617 barrels per day over an 8 hour period with a water-cut of less than 2%.
Under natural flow, the well flowed at an average oil rate of 120 barrels per
day over a 12 hour period through a 40/64 inch choke with a water-cut of 1%.


The Khurbet East No.8 well will be suspended as a future oil producer.


The results of the Khurbet East No.8 well are being integrated into the data set
for the Khurbet East field and the updated reserves evaluation being made by RPS
Energy, the independent reserves engineers, is expected to be completed before
the end of the second quarter 2009.


Khurbet East No.9 Well


Drilling operations commenced on the Khurbet East No.9 well on 9 April 2009. The
Khurbet East No.9 well, located approximately 1.0 kilometres south of Khurbet
East No.1, is the first of three development wells planned to support the
expansion of the early production facilities capacity to 18,000 barrels per day.
This additional capacity is expected to commence operations in the third quarter
of 2009.


3D Seismic


Acquisition of the 850 square kilometre 3D seismic survey surrounding the
Khurbet East and Yousefieh fields is progressing on schedule with completion
expected in the second quarter 2009. The data will be processed in the third
quarter, followed by seismic interpretation and prospect definition in the
fourth quarter 2009.




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


"We are pleased with the results of the Khurbet East No.8 well with the
oil-bearing reservoir encountered in this location being materially thicker than
expected and the stimulation and testing operations demonstrating that oil can
be produced at commercial rates from areas where the reservoir quality is less
than the exceptionally high quality seen in the centre of the field."


Enquiries: Lisa Hibberd 020 7925 2440

required field

Here is reason for pull back

RNS Number : 6272Q
Emerald Energy PLC
15 April 2009

?
FOR IMMEDIATE RELEASE


15 April 2009


CONVERSION OF CONVERTIBLE BONDS


Emerald Energy Plc (the "Company") is pleased to provide the following update:


The Company and Credit Suisse Securities (Europe) Limited ("Credit Suisse") have
reached an agreement for the conversion of the entire outstanding principal
amount of the Series B US$15,000,000 4.875 per cent. senior unsecured
convertible bonds due 2013 (the "Series B Bonds") into the Company's ordinary
shares (the "Ordinary Shares"). The Series B bonds which were issued in July
2007 are convertible into Ordinary Shares at a price of 270 pence per Ordinary
Share at a fixed US dollar/sterling exchange rate of 2.0171.


Credit Suisse has agreed to exercise its right to convert all of the outstanding
principal amount of the Series B Bonds into the Ordinary Shares, in
consideration of which the Company has agreed to pay Credit Suisse an amount of
US$914,062.50, equal to the interest payable on Series B Bonds for the period
from and including 31 March 2009 to but excluding 30 June 2010.


The total number of Ordinary Shares issued to Credit Suisse on 15 April 2009
pursuant to conversion of the Series B bonds is 2,754,229. These Ordinary Shares
are expected to be listed on the Official List of the UK Listing Authority and
admitted to trading on the London Stock Exchange no later than 22 April 2009.
Following this transaction, the issued share capital of the Company will be
62,440,373 Ordinary Shares.


The Series A US$15,000,000 5.875 per cent. senior unsecured convertible bonds
due 2012 that were also issued in July 2007 remain in place.


RNS Number : 8330Q
Emerald Energy PLC
20 April 2009

?Form TR-1 with annex. FSA Version 2.1 updated April 2007


+-----------------------------------------+
| For filings with the FSA include the |
| annex |
| For filings with issuer exclude the |
| annex |
+-----------------------------------------+


+-----------------------------------------------------------------------------+
| TR-1: Notifications of Major Interests in Shares |
+-----------------------------------------------------------------------------+


+----------------------------------------+---------------+---------------+----------+
| 1. Identity of the issuer or the underlying issuer of | EMERALD ENERGY |
| existing shares to which voting rights are attached: | |
+--------------------------------------------------------+--------------------------+
| 2. Reason for notification (yes/no) |
+-----------------------------------------------------------------------------------+
| An acquisition or disposal of voting rights | Yes |
+------------------------------------------------------------------------+----------+
| An acquisition or disposal of financial instruments which may result | |
| in the acquisition of shares already issued to which voting rights are | |
| attached | |
+------------------------------------------------------------------------+----------+
| An event changing the breakdown of voting rights | |
+------------------------------------------------------------------------+----------+
| Other (please specify):______________ | |
+------------------------------------------------------------------------+----------+
| 3. Full name of person(s) subject to | Credit Suisse Securities (Europe) |
| notification obligation: | Limited |
+----------------------------------------+------------------------------------------+
| 4. Full name of shareholder(s) (if | |
| different from 3): | |
+----------------------------------------+------------------------------------------+
| 5. Date of transaction (and date on | 15.04.09 |
| which the threshold is crossed or | |
| reached if different): | |
+----------------------------------------+------------------------------------------+
| 6. Date on which issuer notified: | 16.04.09 |
| | |
+----------------------------------------+------------------------------------------+
| 7. Threshold(s) that is/are crossed or | 3% |
| reached: | |
+----------------------------------------+---------------+---------------+----------+




+--------------+--------------+----------+-----------+--------------+----------+----------+----------+
| 8: Notified Details |
+----------------------------------------------------------------------------------------------------+
| A: Voting rights attached to shares |
| |
+----------------------------------------------------------------------------------------------------+
| Class/type | Situation previous | Resulting situation after the triggering |
| of shares | to the triggering | transaction |
| If possible | transaction | |
| use ISIN | | |
| code | | |
+ +-------------------------+-----------------------------------------------------------+
| | Number of | Number | Number | Number of voting | Percentage of |
| | shares | of | of | rights | voting rights |
| | | voting | shares | | |
| | | rights | | | |
+ + + + +-------------------------+---------------------+
| | | | | Direct | Indirect | Direct | Indirect |
+--------------+--------------+----------+-----------+--------------+----------+----------+----------+
| ORD | N/A | N/A | 2,016,123 | 2,016,123 | N/A | 3.37% | N/A |
| GB0007360158 | | | | | | | |
| | | | | | | | |
+--------------+--------------+----------+-----------+--------------+----------+----------+----------+




+---------------+---------------+---------------+----------------------+---------------+
| B: Financial Instruments |
| |
+--------------------------------------------------------------------------------------+
| Resulting situation after the triggering transaction |
| |
+--------------------------------------------------------------------------------------+
| Type of | Expiration | Exercise/ | No. of voting | Percentage of |
| financial | date | conversion | rights that | voting rights |
| instrument | | period/date | may be | |
| | | | acquired (if | |
| | | | the | |
| | | | instrument | |
| | | | exercised/converted) | |
+---------------+---------------+---------------+----------------------+---------------+
| | | | | |
+---------------+---------------+---------------+----------------------+---------------+








+-----------------------------------------------------------------------------+
| 9. Chain of controlled undertakings through which the voting rights and /or |
| the financial instruments are effectively held, if applicable: |
+-----------------------------------------------------------------------------+
| Credit Suisse Securities (Europe) Limited and Credit Suisse International |
| are a division of Credit Suisse ("CSIBD"), which is part of the Credit |
| Suisse Group ("CSG"). CSIBD is a segregated business unit within CSG with |
| an independent management structure and exercises its voting rights |
| independently from other divsions of CSG |
+-----------------------------------------------------------------------------+

Emerald Energy Holding(s) in Company





TIDMEEN

RNS Number : 9727Q
Emerald Energy PLC
22 April 2009

?
Emerald Energy Plc


FOR IMMEDIATE RELEASE


22 April 2009


Holdings in Company


Emerald Energy Plc (the "Company") received notification on 21 April 2009 from
Credit Suisse Securities (Europe) Limited that, as at 20 April 2009, it no
longer held reportable voting rights in ordinary shares of 10p each in the
Company.


The total number of current voting rights in the Company is 62,440,373


Enquiries: Lisa Hibberd 020 7925 2440

As i suspected CS selling down to raise money for repayment od USA loan.

Another great result at KE, just gets better abd better.
cyril
ps will add todays news to the header, although its getting a little top heavy.

cyril

please keep the following in header plus todays remove the rest if you think
they are not needed

thanks dave.

http://www.emeraldenergy.com

http://www.investegate.co.uk/Article.aspx?id=200812220700095529K

http://www.investegate.co.uk/Article.aspx?id=200901260700092060M

http://www.investegate.co.uk/Article.aspx?id=200902110700131142N

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

http://www.emeraldenergy.com/documents/EEN2008Results.pdf

cyril

And Giante#2 result not to far away

DFGO; managed a small top up yesrerday @482p, so reasonably pleased.
cyril

cyril
well done



Output rise lifts Emerald
MoneyAM
Emerald Energy expects Q1 earnings of $9.9m - up from $8.4m last year - following a big rise in production.

The firm said daily output was 5,693 barrels of oil equivalent compared with 1,622 barrels in the first quarter of 2008.

Profits after tax for the period beginning 1 January will be $4.6m - up from $3.5m in 2008.

It said it had completed initial appraisal of Yousefieh discovery in Syria and drilled three successful appraisal wells and commenced extended production testing of the Capella discovery in Colombia.

Chief executive Angus MacAskill said: "We are very pleased with the results to date in 2009, with significant progress towards delivering the material production enhancement projects in the Khurbet East field in Syria and the Gigante field in Colombia.

"Our cash and cash generation positions are strong, and we remain committed to investing in projects to deliver additional value to shareholders."

Edit
thanks for up dating header.

Emerald Energy Plc




24 April 2009




INTERIM MANAGEMENT STATEMENT




Emerald Energy Plc ('Emerald' or the 'Company') is today issuing its Interim Management Statement for the period beginning 1 January 2009.




HIGHLIGHTS




Production (quarterly average net entitlement) of 5,693 bopd (1,622 bopd in Q1 2008).
Completed initial appraisal of Yousefieh discovery in Syria.
Drilled 3 successful appraisal wells and commenced extended production testing of the Capella discovery in Colombia.
Strong cash flow with EBITDA in first quarter of $9.9 million ($8.4 million in Q1 2008).
Profits after tax (unaudited) in first quarter of $4.6 million ($3.5 million in Q1 2008).
$15 million of convertible bonds converted to equity.
Active forward exploration and development programme funded from existing cash and cash flow.



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



'We are very pleased with the results to date in 2009, with significant progress towards delivering the material production enhancement projects in the Khurbet East field in Syria and the Gigante field in Colombia. Delineation and appraisal activities have also advanced with greater understanding achieved in the Khurbet East and Yousefieh fields in Syria and also in the very material Capella field in Colombia, all of which will be used to optimise future developments. In exploration, we look forward to the results of the Gigante No.2 and Mirto No.1 wells in Colombia, and also to progressing the new exploration blocks in Colombia and Peru. Our cash and cash generation positions are strong, and we remain committed to investing in projects to deliver additional value to shareholders.'







Colombia




Further to the operations reported in the preliminary statement of 2008 results announced on 16 March 2009, the following activities have taken place.




In the Ombu block, the Capella No.6 well, located 4.2 kilometres to the southwest of Capella No.1, was drilled to a total depth of 3,645 feet. The well encountered an exceptionally thick upper Mirador interval with net potential hydrocarbon pay of 80 feet of 37% porosity sand, greatly exceeding the previously recorded maximum net thickness of 23 feet encountered in the Capella No.2 well. The Capella No.6 well also encountered a lower Mirador gross conglomerate interval of 175 feet with hydrocarbon shows being recorded to a depth of 3,605 feet, some 130 feet deeper than recorded in previous wells.




An open-hole flow test was conducted over the full lower Mirador conglomerate interval from which flow is interpreted, using data from previous wells, to be largely from natural fractures in the conglomerate. During this testing over a period of 3 days, the production stabilised at a rate of approximately 295 barrels of fluid per day with a water cut of approximately 90%. Preliminary evaluation of the well data indicates that the water is flowing from high productivity fractures at the base of the section. The Company plans to isolate the lower water-producing section of the conglomerate and conduct another open-hole flow test of the oil bearing interval.




A cased-hole flow test was conducted over the upper Mirador sand interval. During this testing over a period of 5 days, the production stabilised at a rate of approximately 100 barrels of oil per day with a water cut of approximately 2%. Due to signs of early sand production from this unconsolidated interval, the rotational speed of the progressive cavity pump was restricted to approximately one quarter of that used for testing the same interval in the Capella No.2 well. The Company plans to clean the sand from the wellbore and conduct a further flow test.




The Company plans to drill one further well in the southern part of the Capella structure in 2009 and this well, located on the same surface location as Capella No.6, is planned to be the first horizontal well in the field and to target the upper Mirador sand. Following the environmental permitting of the northern part of the block, the Company plans further drilling in this area.




The extended production testing of Capella wells, commenced in February 2009 at an oil rate of 400 barrels per day, subsequently increased to over 700 barrels per day before being temporarily suspended in March due to marketing limitations experienced for the heavy crude oil. The Capella oil has, to date, been sold directly to industrial end users within Colombia but the Company expects that, during commercial development, the Capella oil will be delivered to existing pipelines following blending or upgrading. The Company is currently engaged in removing the existing marketing constraints and anticipates recommencing extended production testing in May.




The Gigante No.2 well, planned primarily as a development well in the producing Tetuan reservoir, has been drilled to a depth of approximately 13,400 feet and casing has been run and cemented in place. The total depth of the well, including the exploration target in the Caballos formation, is expected to be approximately 16,000 feet. The results of this well are expected in the middle of the year.




In the Jacaranda block, the Jacinto No.1 exploration well, designed to evaluate the potential of a stratigraphic exploration target in the Tertiary aged Carbonera formation, encountered a water-bearing sand channel and was plugged and abandoned. The remaining prospectivity in the block is being evaluated prior to making a decision by 10 May 2009 whether to enter the next phase of the contract which, if entered, will have a duration of 12 months and a minimum work programme including one exploration well.




In the Maranta block, preparations are at an advanced stage to drill an exploration well to a depth of approximately 11,000 feet on the Mirto prospect which Emerald estimates may contain unrisked prospective resources in the range 5 to 15 million barrels. Drilling operations are expected to commence in May 2009. The Company has entered into a previously announced farmout agreement, subject to the approval of the ANH, under which Emerald retains 80% working interest and operatorship of the block.




Emerald has formally signed the exploration and production contract for Block VSM32, located in the Upper Magdalena Valley adjacent to the company's Matambo block. Under the contract, Emerald has 100% working interest and operatorship of the block. The Company believes the block may contain exploration potential analogous to the nearby Gigante field. The work commitment during the first phase of the ANH exploration and production contract, lasting 36 months, consists of the acquisition of 137 km of new 2D seismic data and the drilling of one exploration well.




Syria




Further to the operations reported in the preliminary statement of 2008 results announced on 16 March 2009, the second Khurbet East field delineation well, Khurbet East No.8, located in the southern part of the field, encountered a 23 metre gross oil column (15 metre net) within the Cretaceous Massive reservoir. Wireline logging indicated an average porosity in the net oil bearing interval in excess of 23% but did not identify a definitive oil-water contact as the porous oil-bearing reservoir lies directly above a low porosity and permeability interval. During flow testing of the full reservoir interval, following acid stimulation, the well produced, under artificial lift, 23 degree API oil at an average rate of 617 barrels per day over an 8 hour period with a water-cut of less than 2% and at an average oil rate of 120 barrels per day under natural flow.




The updated independent reserves evaluation of the Massive reservoir, taking into account seismic, well and production information acquired since the last evaluation, is expected to be concluded in the second quarter of 2009.




The Khurbet East field production performance has been excellent with the cumulative gross oil production of 2.5 million barrels recently being reached, minimal water production to date, and little reservoir pressure depletion being recorded. As a result of the early field performance, work is now underway to expand the capacity of the field's gathering, processing and loading facilities to 18,000 barrels of fluid per day as an interim expansion prior to the full field development of the Khurbet East field. This interim expansion of capacity, consisting of the installation of additional surface equipment and the drilling of three further development well, is expected to be operational in the third quarter of 2009. The first of these additional development wells, Khurbet East No.9 commenced drilling in April.







Peru




Emerald has formally signed the exploration and production contract for Block 163. The contract was awarded by PeruPetro S.A., the state company administering the hydrocarbon resources in Peru. Under the contract, Emerald has 100% working interest and operatorship of the block, Emerald's first in Peru. 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 30 March 2009 the Company benefited from production in Colombia and Syria as shown below.






Q1-2009
Q1 2008
FY 2008



Bopd
bopd
bopd

Gross production:







Colombia
4,196
2,979
3,530

Syria
9,996
-
3,863

Working interest production:







Colombia
3,042
1,799
2,475

Syria
4,998
-
1,932



8,040
1,799
4,407

Net entitlement production:







Colombia
2,748
1,622
2,246

Syria
2,945
-
1,139



5,693
1,622
3,385











Financial Position




In the first quarter of this financial year, Emerald reports the following unaudited results:






Q1-2009
Q1 2008
FY 2008





$ '000
$ '000
$ '000

Revenue from oil sales
(a)
14,219
12,961
86,041

Adjusted EBITDA
(b)
9,933
8,355
65,729

Profit after tax
4,637
3,540
35,645

Cash and cash equivalents at period end
(c)
59,018
41,173
74,447





(a) In the three months to 31 March 2009, revenue from oil sales increased by 10% in relation to the revenues achieved in the same period of last year. This growth resulted from a substantial increase in the invoiced production, which totalled 439 mbbl, compared to 156 mbbl achieved in the same quarter of last year. This increase in invoiced production was substantially, but not entirely, offset by the a combination of the decline in the oil prices, with WTI benchmark averaging $43 per barrel in the three months to 31 March 2009 compared to $98 per barrel experienced in the same quarter of last year, and an increase in oil inventories of 73 mbbl resulting in the quantities of oil sold in Colombia being 70% of the produced volume.




(b) EBITDA is earnings before interest (and other finance income and costs), tax, depreciation, depletion, amortisation and write-offs of oil & gas assets. Adjusted EBITDA is calculated before share based payments, charged to the income statement under IFRS 2.




(c) Cash decrease of $15.429 million was in line with the Company's 2009 budget with cash and first quarter cash flow funding capital projects.




Conversion of Series B Convertible Bonds




In April, the entire outstanding principal amount of the Series B US$15,000,000 4.875 per cent senior unsecured convertible bonds were converted into 2,754,229 of the Company's ordinary shares. The Company agreed to pay to the holder of the bonds, on conversion, an amount of $914,062.50 equal to the interest due on the bonds in the period to 30 June 2010, the interest payment date prior to the earliest date on which the Company may have been entitled, subject to a number of conditions, to redeem the bonds. Following this transaction, the issued share capital of the Company is 62,440,373 ordinary shares.




The early conversion of the Series B Bonds has eliminated any uncertainty related to the occurrence and timing of conversion of these bonds and reduced the Company's balance sheet liabilities.