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

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

Thanks

I am inclined to say.

Still falling!

If charts were the only way of investing, it might make things a lot easier,
however that is not the case. Looking at the short term charts it does not look good for EEN,but as we all know what goes up, must come down and vise- versa.
A better guide is the long term chart which clearly shows a steady climb, with
each drop creating a lower bottom.
It is news,results and sentiment which drive the SP. Now anyone who has bothered to research EEN will understand some of the reasons for recent decline.
The ME conflict hasn't helped along with a poor result form the Souediieh North Well,but the main reason imho is the fall in production of oil from its Colombian
fields.This due intirely to rework of their wells, mostly new Electric Submersible Pump's and a new generator at Gigante( plus refurbishing of the downhole pipe) being fitted. These ESP's have replaced the old downhole pumps,which have been responsible for falling output. With production reduced from an average 4400bopd to a lowerly 3400bopd, already we can see a improvement in output via Gigante and with all the wells updated news of increased output is imminent and levels of perhaps 7000bopd will have be achieved.

So "What will the SP be then"? Or to repeat DFGO's question what price at years end when 10000bopd is reached, of which "i've yet to see an answer"?
cyril
P.S.Could be a great buying opportunity??

http://www.investegate.co.uk/Article.aspx?id=200605240701154806D

The above doesn't seem to be working, try
www.uk-wire.co.uk
cyril

DFGO - 4 Aug'06 - 12:37 - 18449 of 18466 edit


Mad,blueforce
all following as per company RNS.

2005 interim results Emerald Averaged 2,745bopd x 181 days = 496,845 barrels for half 1 2005.

1st qtr [Jan,Feb,Mar] 2006 Emerald average 4,400bopd x 90 days = 396,000 barrels.

April 2006 [4,400bopd minus 954bopd for Vigia#1 and 760bopd Campo Rico#1 ref 24/5/06 RNS = 2,686bopd x 30 days = 80,580 barrels for April.

May 2006 Ref 24/5/06 RNS average 3,400bopd including with CR#1 jet pump replaced x 31 days = 105,400 barrels.
Vigia#1 being worked over and ESP installed, V#1 expected to be in production by end of May.

June. no RNS to say Vigia#1 producing x amount so kept same as May nothing allowed for Vigia#1.
June 3,400bopd x 30 days 102,000 barrels.

1st qtr. 396,000 barrels.
April. 80,580 barrels.
May. 105,400 barrels.
June.102,000 barrels.
total 683,900 barrels minus 496,845 barrels 1st half 2005 = 187,055 barrels more than H1 2005 and not including production from Vigia#1 for June 2006.

@$50 a barrel = $9,352,750 more turnover than H1 2005

24/5/05 Colombia update rns
http://www.advfn.com/p.php?pid=nmona&cb=1154688293&article=15539777&symbol=LSE%3AEEN
2005 interims RNS
http://www.advfn.com/p.php?pid=nmona&cb=1154691033&article=12620250&symbol=LSE%3AEEN

blueforce - 4 Aug'06 - 15:03 - 18452 of 18466


DFGO - 4 Aug'06 - 12:37 - 18449 of 18451

Thanks for the figures, but is all that production attributable to een? Remember the Colombian national oil company have excercised their right to back into some of our production wells and may well do same for the likes of Gigante in the future

Felix
----------------------------------------------------------------------

DFGO - 4 Aug'06 - 15:33 - 18456 of 18466 edit


Blueforce

Emerald got 64% of production in 2005 for Camp Rico in 2006 Emerald get 69%
[75% before royalty] for Campo Rico so in fact Emerald are 5% better off than 2005

From 2005 final results page 12

2.b Entitlement production
Entitlement production is production to which Emerald is entitled in any
given period. Entitlement production excludes royalty petroleum and any
other production that belongs to Ecopetrol and other parties forming the
Associate under the terms of the association contracts.
In 2005, Emerald was entitled to 80% of production from the Gigante field (2004: 80%); 92% of production from the Vigia field (2004: no production) and to 64% of production from the Campo Rico field (2004: 92%).
On 28 December 2005,Ecopetrol granted the Campo Rico field the commerciality status.
Upon grant of the commerciality status, Emerald's entitlement to production from the Campo Rico field has changed to 69% (75% before royalty). This entitlement will continue until Emerald has recovered the allowable reimbursable costs,whereupon Emerald will become entitled to 46% (50% before royalty) of production from the Campo Rico field.

DFGO - 4 Aug'06 - 16:04 - 18459 of 18466 edit


bob
H2 2006 allowing 20% for ESP
Campo Rico#1#2##3 @ 800bopd each till year end 800bopd x 3 = 2,400bopd x 182 days = 436,800 barrels.
Vigia#1#2#3 @1,100bopd each - ditto -1,100 x 3 = 3,300 x 182 days = 600,000 barrels.
Gigante#1 1,000bopd x 182 days = 182,000 barrels
Centauro#1#2 1,000bopd combined output 1,000bopd x 182 days = 182,000 barrels

Campo Rico 436,800.
Vigia 600,000.
Gigante 182,000
Centauro 182,000
Total H2 1,400,800 barrels
plus total H1 684,580

2006 total for year 2,085,380 barrels against 2005 1.2million barrels

but as always dyor
------------------------------------------------------------


bobobob5 - 4 Aug'06 - 16:11 - 18462 of 18466


DFGO: I'd personally consider your H2 bopd assumptions (above) to be something like a 'low-end' forecast. But even so, the increase from H1 to H2 is strong, approximately 100% gain. bob

A nice steady rise in the SP of late, DFGO's posts give an insight to the true
potential. An RNS confirming the success of the recent work overs can't be
a very off, and what price then?
cyril

niceonecyril

not long to interims now 28/9 last year

DFGO, So about 6 weeks then, if thier past pattern of news flow is anything to go by, we could get an Operational update maybe coming with an announcement on
the spudding of Tigris? Looking for in excess of 6000bopd with perhaps the latest reserve position coming in the interims. Still no great time scale before we have
definate news, just a little more patience required.
cyril

Todays RNS of about 4100 bopd(from 8 wells)(6 wells in Nov were producing
4300bopd) is a great disappointment,not much short term regarding Colombia, The main hope must now be with Tigris which is expected to spud next month, although this is deep well, and will take several months to drill.
One consolation is of high oil prices which will help justify the SP
Not sure what interim results can add todays news? Perhaps an explanation of
the poor output figures, with Vigra producing only 650 bopd being the likely cause?
cyril

It looks like it might get to my 50p valuation sooner than I thought.

"it had to abandon a number of prospective wells after negative tests"

Haystock talking B*****ks again, 4100bopd is still not to be sneezed at.More
ESP's to be installed which probably means some wells are shut down short term?
Would be interested in your calculations which allows your of 50p?
cyril

Whilst I do agree that Haystack is blowing smoke, the RNS does say that all 6 CR and V wells are 'on production'. CS1 and Silfide are off, but there's still a 200+ bopd reduction in output of CR&V combined since May. Cyril what do your reckon is going on?

niceonecyril
cyril
bobobob5 on advfn found this on oil gas journal
http://www.ogj.com/display_article/266634/ARTCL/none/Colombia/

http://www.ogj.com/category/online_subcategory.cfm?p=7&cat=ExplD&maxrows=21

August 21, 2006 10:51 AM
Emerald Energy PLC, London, is designing a 40 sq km 3D seismic survey for the 1990s Gigante oil discovery in the Upper Magdalena Valley.

Colombia

By OGJ editors

HOUSTON, Aug. 21 -- Emerald Energy PLC, London, is designing a 40 sq km 3D seismic survey for the 1990s Gigante oil discovery in the Upper Magdalena Valley.

Drilling of Gigante-2, however, is not expected to start before the end of 2007 because a special rig and tubulars will be needed to drill to around 15,500 ft.

Emerald asked state Ecopetrol whether it intends to participate for its 50% working interest in the new well but may drill the well sole risk if Ecopetrol declines.

Gigante, on the Matambo Association Contract, has 60 million bbl of 30 gravity oil in fractured Cretaceous Tetuan at 13,000 ft and as much as 500 million bbl of oil in Cretaceous Caballos sandstone at 15,500 ft, Emerald said (OGJ, Sept. 13, 1999, p. 107).

It said the structure might extend onto an adjoining block.

60mbbl valued at $5 in the ground at $1.90/1.00 = 160m compared to 125m market cap.

Add in just 100mbbl from lower level makes this 420m.

Plus the other producing Colombian wells.

Oh, and maybe Syria will prove to worth a few bob one day.

Come on, Haystack, now show us your arithmetic.

sd

Operations Update - Syria

RNS Number:7388I
Emerald Energy PLC
11 September 2006


Emerald Energy Plc


FOR IMMEDIATE RELEASE 11 September 2006


Operations Update - Syria


Emerald Energy Plc ("Emerald" or the "Company") is pleased to announce the
commencement of drilling on the Tigris prospect within Block 26, Syria.


The Tigris structure is located in the northeast region of Block 26 directly
underlying the Souedieh Field, the largest known oil field in Syria. The Tigris
No.1 exploration well is expected to take 90 to 120 days to drill and evaluate.
It will be a vertical well drilled to an approximate depth of 4,500 metres.


Tigris No.1 will be the second well to penetrate the Carboniferous and Devonian
aged reservoirs of the Tigris structure. The S1100 well, drilled in 1994 by the
Syrian Petroleum Company and located approximately 1 kilometre northeast of the
Tigris No.1 well, was the first well to intersect these reservoirs within this
structure. Independent interpretation of the wireline logs from the S1100 well
indicates a substantial hydrocarbon column.


Ryder Scott Company, L.P. completed a reserves study and valuation of the
potential Probable and Possible reserves (unrisked) for the Tigris structure in
Block 26, Syria; these reports can be viewed on Emeralds' website at
www.emeraldenergy.com.


Tigris No.1 is the second of four commitment wells to be drilled during the
initial exploration phase of the contract for Block 26 that ends in August 2007


Emeralds' Chairman, Alastair Beardsall, said:


"We believe the data from the S1100 well indicates Tigris contains hydrocarbons;
the drilling and testing of Tigris No.1 will determine if the mapped reservoirs
contain sufficient reserves that can be produced at commercial flow rates for
the Tigris structure to be developed. In addition to Tigris, a number of leads
and prospects are being evaluated, the best of which will be selected for our
future drilling program."



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



Enquiries: Helen Manning 020 7925 2440

Emerald Energy 50% partenters Gulfsands Drilling Report



RNS Number:7239I
Gulfsands Petroleum PLC
11 September 2006

11 September 2006


Gulfsands Petroleum plc
("Gulfsands" or "the Company")


Tigris-1 Well Commences in Block 26, Syria


Gulfsands Petroleum plc (symbol GPX), the AIM listed oil and gas exploration,
development and production company with activities in the USA, Syria and Iraq,
is pleased to announce that the Company has commenced drilling the Tigris-1 well
within Block 26, Syria. The Tigris-1 represents the first of a series of wells
proposed to be drilled by the Company in Block 26 over the next 12 months.
Gulfsands is currently in final negotiations on an additional drilling rig to be
utilized within Block 26 for this continuous drilling program.

Gulfsands, the operator and 50% working interest owner in Block 26, has
commenced the drilling of the Tigris-1 confirmation well located in the
northeast region of Block 26. This vertical well will be drilled to an
approximate depth of 4,500 meters with the primary objective being Carboniferous
and Devonian aged reservoirs directly underlying the Souedieh Oil Field, the
largest known oil field in Syria. This well is scheduled to take 90 to 120 days
to drill and evaluate at an estimated cost of $7.3 million, or $3.65 million net
to Gulfsands.

The Tigris-1 well will be the second well to target the Carboniferous and
Devonian aged reservoirs within the overall Tigris structure. The S1100 well,
drilled in 1994 by the Syrian Petroleum Company and located approximately 1
kilometre northeast of the Tigris-1 well, was the first well to intersect these
reservoirs within this structure. Independent interpretation of the wireline
logs from the S1100 well indicates a substantial hydrocarbon column. The main
objective of the Tigirs-1 well is to confirm the presence of this hydrocarbon
column.

Tigris has been estimated by Ryder Scott Company, L.P. to have 442 BCFG of gross
probable reserves with a net present value discounted at 10% of $233 million net
to Gulfsands 50% working interest. Ryder Scott has estimated the gross
prospective resource size for Tigris as some 4.3 TCF of natural gas, or 562
million barrels of oil. The Ryder Scott reserve reports can be viewed on
Gulfsands' website at www.gulfsands.net.

Gulfsands' CEO, John Dorrier, said:

"The drilling program being undertaken in Block 26 holds great potential for the
Company. The Tigris well is the first in a series of wells planned to be
drilled on a near continuous basis over the next 12 months on the Block. The
Block 26 drilling program, in combination with the Company's development work on
the Misan Project in Iraq and the oil and gas production oriented programs in
the Gulf of Mexico uniquely position the Company for asset growth."



NB: This release has been approved by the Company's geological staff who include
Jason Oden, Gulfsands Exploration Manager who has a Bachelor of Science degree
in Geophysics with 22 years of experience in petroleum exploration and
management and is registered as a Professional Geophysicist, for the purpose of
the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock
Exchange in respect of AIM companies, which outlines standards of disclosure for
mineral projects.


Note to Editors



* Syria

In Syria, Gulfsands owns a 50% working interest in Block 26 and is the operator.
The block covers 11,000 square kilometres and surrounds areas which currently
produce over 100,000 barrels of oil per day from existing fields. In January
2006 the Company completed the acquisition of 1,155 kilometres of 2D seismic and
anticipates drilling two wells during 2006. The first well, known as Souedieh
North, commenced drilling in late April 2006 and was temporarily suspended in
June for further analysis. The second well known as Tigris commenced drilling
in September of 2006 and has the potential to contain in excess of 500 MMBOE.
Gulfsands has identified 31 total exploitation and exploration prospects within
Block 26 with mean resources potential exceeding 1 billion barrels of
recoverable oil.

Ryder Scott completed a reserves study on the Tigris structure in 2006 and these
reserves were classified as either oil or gas bearing until such time as the
Company drills and tests the Tigris structure. As of 1 July 2006 Ryder Scott
determined that the Probable Reserves net to Gulfsands after applying the terms
of the Production Sharing Contract is 102 BCFG with a net present value
discounted at 10% of $233 million. For primarily a natural gas accumulation, an
additional 75 BCFG of possible reserves net to Gulfsands were estimated to have
a 10% discounted net present value of $261 million. Furthermore, the Company
completed its own economic evaluation on the Prospective Gas Resource and has
estimated that Prospective Gas Resource net to Gulfsands is 577 BCFG with a net
present value of approximately $1.06 billion. In summary total gas reserves
potential net to Gulfsands among Probable and Possible Reserves for the natural
gas case is 177 BCFG (30 MMBOE) with a net present value of $494 million and
when combined with the Prospective Gas Resource it totals 754 BCFG (126 MMBOE)
with a net present value of approximately $1.55 billion.

For primarily an oil accumulation, Ryder Scott determined the Possible Reserves
net to Gulfsands after applying the terms of the Production Sharing Contract are
19.4 million barrels of oil having a net present value discounted at 10% of $452
million. Furthermore, the Company completed its own economic evaluation on the
Prospective Oil Resource and has estimated that Prospective Oil Resource net to
Gulfsands is 50.9 MMBO with a net present value of approximately $1.51 billion.
In summary total oil reserves potential net to Gulfsands among Possible and
Prospective Oil Resource for the oil case is 70.3 MMBO with a net present value
of approximately $1.96 billion.

From 4th September 2006 RNS

Alastair Beardsall, Emerald's Chairman said of today's appointment,

"I am very pleased that Angus has agreed to join us. He brings his skills,
expertise and technical leadership to Emerald to further extend the growth that
the company has experienced over the past 3 years. Angus arrives as we commence the drilling of Tigris No.1, an exploration well in Syria,
and prepare for our winter drilling campaign in Colombia."


The following from my post 19602 on advfn

Imo Emerald will be busy in COLOMBIA during this WINTER

Angus arrives as we commence the drilling of Tigris No.1, an exploration well in Syria, and prepare for our winter drilling campaign in Colombia."

The drilling contract for Saxon's Rig 223,has been extended to January 2008 to ensure Emerald has drilling capacity available for its next drilling campaign.

Rig 223 is currently on loan to another operator to drill in the Middle Magdalena valley basin where Emerald's Fortuna Block is located.

Rig 223 will return to commence Emerald's next drilling campaign which is anticipated to start in November 2006.

The current schedule includes both exploration and development wells.

And is expected to commence with the drilling of Aureliano No.1 exploration well on the Fortuna block.
The Aureliano prospect lies adjacent to the Totumal oil field,also situated within the Fortuna block.
The Totumal field has produced more than0.8 mmbbl of oil from La Luna, a Cretaceous limestone formation, until late 1980s, when it was shut-in by Ecopetrol.
In addition to drilling Aureliano No.1,two of the existing Totumal wells are being evaluated as re-entry candidates to re-commence production from the Totumal field.

Emerald also looking for possible way to fracture Silfide#1.
Geological, reservoir and production data is being evaluated to determine if the well would respond to a hydraulic fracture treatment to enhance the production rate.


The following are on the Campo Rico block and might not be included in the winter campaign,most likely in spring next year,Rig 233 on contract till January 2008.

the following from
cfc posted 19077 20/8/06 on advfn
DFGO Further still I have just checked the ANH web site and there are now TWO NEW! well names listed for the Campo Rico block? Centauros-1 and Centauros-2 these are not the same as Centauro Sur-1 & 2 which are both listed separately

http://www.anh.gov.co/html/cache/gallery/GC-2/G-3/PerfoAgosto1406.pdf

Exploration Contract Award

RNS Number:0023J
Emerald Energy PLC
15 September 2006


Emerald Energy Plc


FOR IMMEDIATE RELEASE 15 September 2006


Exploration and Production Contract Award in Colombia


Emerald Energy Plc ("Emerald" or the "Company") is pleased to announce that it
has been awarded a new exploration and production contract ("Contract") in
Colombia. The Maranta Contract, in which Emerald has a 100% working interest,
covers an area of 365 sq. km and is located north-east of the producing oil
fields in the Putumayo Basin in south-west Colombia.


The initial phase of the exploration period will be 18 months and the minimum
work programme comprises the acquisition of 30 km of new 2D seismic data and the
re-processing of 40 km of existing 2D seismic data. If Emerald elects to enter
the second phase, the minimum work programme includes the drilling of 1 well to
an estimated depth of some 11,000 ft.


The Maranta Contract has been awarded by the National Hydrocarbon Agency of
Colombia ("ANH"), and a copy of the model contract terms can be found on the ANH
website (www.anh.gov.co).


Emeralds' Chairman, Alastair Beardsall, said:


"We are very pleased with the award of our first ANH E&P Contract in Colombia.
The addition of prospective acreage in a proven petroleum system offers further
potential to build on the successful development of the Campo Rico, Vigia and
Centauro Sur fields in recent years."



Enquiries: Helen Manning 020 7925 2440

Emerald Energy says awarded Colombia exploration and production contract



LONDON (AFX) - Emerald Energy PLC said it has been awarded a new exploration and production contract in Colombia.

The Maranta Contract, from the National Hydrocarbon Agency of Colombia, covers an area of 365 sq km to the north east of the producing oil fields in the Putumayo Basin in south west Colombia.

Emerald Energy said the initial phase of the exploration period will be 18 months and the minimum work programme comprises the acquisition of 30 km of new seismic data and the re-processing of 40 km of existing seismic data.

If Emerald elects to enter the second phase, the minimum work programme includes the drilling of one well to an estimated depth of some 3,350 metres.

Chairman Alastair Beardsall said: 'The addition of prospective acreage in a proven petroleum system offers further potential to build on the successful development of the Campo Rico, Vigia and Centauro Sur fields in recent years.'

Interim Results

RNS Number:1329J
Emerald Energy PLC
19 September 2006


19 September 2006

For immediate release


EMERALD ENERGY PLC ("EMERALD" OR THE "COMPANY")
ANNOUNCES INTERIM RESULTS FOR THE
SIX MONTHS ENDED 30 JUNE 2006


Highlights


* Average daily gross production for the period was 3,677 bopd, an increase
of 45% compared to the 6 month period to 30 June 2005;

* In Colombia, Emerald currently has ten production wells on 5 fields with
nine in operation producing total some 4,200 bopd;

* Since February 2006 Emerald has participated in the drilling of 5 wells, 3
exploration and 2 development wells, resulting in 1 new discovery and 2 new
wells on production;

* Drilling of the Tigris exploration well commenced on 10 September 2006 and
is currently drilling ahead at 522 metres;

* In September 2006 Emerald signed a new Exploration & Production Contract
with ANH for the Maranta block located in southwest Colombia.


Summary financial results

1H 2006 1H 2005
--------- ---------
mbbl mbbl
--------- ---------
Attributable gross production 665 460
Entitlement production 441 353
--------- ---------
$ '000 $ '000
--------- ---------
Revenue 21,290 12,386
Production costs (6,042) (3,888)
Adjusted EBITDA(*) 13,216 4,831
Profit before tax 5,413 3,265
--------- ---------
Cents Cents
--------- ---------
Earnings per share 3.83 3.15
------------------------------ --------- ---------


(*) Adjusted EBITDA is earnings before interest, tax, depletion, depreciation,
amortisation, exceptional items and non-cash charges relating to share based
compensation and cost recovery.


In the six months to 30 June 2006, the Group achieved average revenue of $48.28
per barrel of entitlement production, an increase of 38% when compared to $35.09
per barrel, achieved in the same period of last year. Emerald sells its
entitlement production to third parties in the proximity of its operations. The
sales price is based upon the benchmark price of West Texas Intermediate or
Vasconia Blend; it is subject to the customary oil quality price adjustment and
a discount to reflect the cost of transporting the oil to the international
markets. Production costs incurred in the reporting period reflect increases in
supplier costs influenced by the increased activity in the oil sector.


Of the 441,000 barrels of oil sold by Emerald, 142,000 barrels represent partial
recovery of reimbursable costs incurred by Emerald in the Campo Rico block in
Colombia. In accordance with the terms of the Campo Rico Association Contract,
158,000 barrels of oil produced in the Campo Rico and Vigia fields were
delivered to Ecopetrol as their share of production. Ecopetrol's share of
production costs in the Vigia field has been fully expensed by the Group and
will be recovered when the field is granted either commercial or sole risk
status by Ecopetrol.


In the reporting period, the increased level of production and the favourable
economic environment allowed Emerald to achieve profit before tax of $5,413,000
an increase of 66% when compared to $3,265,000 achieved for the corresponding
period in 2005.


Board Change


On 4 September 2006 Emerald appointed Angus MacAskill a director and its Chief
Operating Officer.


Commenting on the results, Chairman and Chief Executive, Alastair Beardsall,
said:


"These results show a strong improvement over the same reporting period last
year. In this period of higher oil prices, acquiring reserves and production is
expensive. We have continued to grow our reserves and increase our production
through exploration and development drilling, we remain focused on an
exploration driven strategy for delivering cost-effective growth.


The coming twelve months look very exciting for Emerald with the drilling of the
Tigris exploration well underway, the spudding of the Aureliano exploration well
in November 2006, and our plans to drill the Gigante No.2 well advancing,
hopefully, to a spud date before the end of 2007."



Operations review - Colombia


Campo Rico block


The Centauro Sur No.1 well, drilled in April 2006, on a prospect located to the
south of the Campo Rico field, discovered oil in the Mirador formation. A second
well on the Centauro Sur field was drilled in July 2006. Both wells are now on
production.


The Las Acacias No.1 well, drilled in May 2006, on a prospect located to the
south of the Vigia field, failed to recover hydrocarbons to surface. The well is
now being tested as a disposal well for water produced from the Vigia field.
Using Las Acacias No.1 as a water disposal well will reduce the ongoing cost of
disposing of the water produced in the Vigia field, will allow Emerald to
recover part of its cost from Ecopetrol's share of the Vigia oil production and
will save the cost of drilling a dedicated water disposal well that was part of
the original drilling programme.


The Vigia No.4 well was drilled in August 2006 as a step out appraisal well to
test a westward extension to the Vigia field, and was evaluated as
non-commercial. The well has been plugged and abandoned. A proportion of the
drilling costs will be recovered from Ecopetrol's share of Vigia's oil
production in line with the fiscal terms of the Campo Rico Association Contract.


Matambo block


A programme to acquire 40 square kilometres of 3D seismic to cover the Gigante
structure is being prepared and will assist in determining the location for
drilling the Gigante No.2 well. Discussions with Ecopetrol continue over their
participation in the drilling of the Gigante No.2 well. If the well is drilled
as a development well inside the joint operations area, previously known as the
sole risk area, Ecopetrol is entitled to participate and will pay 50% of the
drilling and operating costs and receive 50% of the production after royalties.
If Ecopetrol declines to participate in a development well, Emerald may drill
the well on a sole risk basis, with an entitlement to recover 200% of the well
cost from any future production. If the well is drilled outside of the joint
operations area as an exploration well, Emerald will pay 100% of the costs with
Ecopetrol retaining the right to participate in 50% of any future production,
subject to Emerald's right to recover 50% of the costs incurred prior to
Ecopetrol's back-in. Due to the long lead times required to source drilling
materials and a drilling rig with sufficient capacity to drill to the estimated
depth of 16,000 feet, the drilling of the Gigante No.2 well may not be started
before the fourth quarter of 2007.


Fortuna block


The Silfide No.1 well on the Fortuna block was produced for several weeks at an
average rate of 25 bopd. Geological, reservoir and production data is being
evaluated to determine if the well would respond to a hydraulic fracture
treatment to enhance the production rate.


El Algarrobo block


The Agueda No.1 exploration well (Emerald 50% working interest) was drilled in
March 2006 on a prospect located to the north of the producing Rancho Hermoso
field in the Llanos basin. The well was evaluated as non-commercial and plugged
and abandoned. The drilling of this well satisfied the work obligations under
the El Algarrobo Association Contract, which has now been relinquished.


Maranta block


In September 2006 the Company signed the Maranta Exploration & Production
Contract with the National Hydrocarbon Agency of Colombia (ANH). The Maranta
block, located in the southwest of Colombia and northeast of the producing
fields of the Putumayo basin, covers some 365 square kilometres. The initial
phase of the exploration period will be 18 months and the minimum work programme
comprises the acquisition of 30 kilometres of new 2D seismic data and the
re-processing of 40 kilometres of the existing 2D seismic data. If Emerald
elects to enter the second phase, the minimum work programme will also include
the drilling of one well to an estimated depth of some 11,000 feet.


Technical Evaluation Agreements (TEAs)


The Group completed the evaluation of the Cachama and Las Brisas areas under the
terms of TEAs with the ANH. The TEAs have now expired and Emerald is progressing
applications with the ANH for exploration rights over certain areas.


Future drilling programme


The drilling contract for Saxon's Rig 223 has been extended to January 2008 to
ensure Emerald has drilling capacity available for its next drilling campaign.
Rig 223 is currently on loan to another operator to drill in the Middle
Magdalena valley basin where Emerald's Fortuna Block is located. Emerald's next
drilling campaign will include both exploration and development wells and is
expected to commence with the drilling of the Aureliano No.1 exploration well in
November 2006. The Aureliano prospect, adjacent to the Totumal oil field, is
situated within the Fortuna block. The Totumal field produced more than 800,000
barrels of oil from La Luna, a Cretaceous limestone formation, until late 1993
when it was shut-in by Ecopetrol. In addition to drilling the Aureliano No.1,
two of the existing Totumal wells are being evaluated as re-entry candidates to
re-commence production from the Totumal field.


Production


Daily gross production for the first six months of 2006 averaged 3,677 bopd,
compared to 2,542 bopd and 4,053 bopd achieved in the first and the second
halves of 2005, respectively. Emerald currently has ten production wells with
nine on production currently lifting about 4,200 bopd in total. In the six
months to the end of June 2006, in addition to the natural decline in oil
production from individual wells, production was impaired by the failures of
rented surface and downhole hydraulic pumping systems. The fields benefit from
active aquifers which assist overall field recovery but result, in the absence
of other factors such as changing well completion configurations, in decreasing
oil production rates and increasing water production rates from individual wells
over time.


The switch to electrical submersible pumps (ESPs) was accelerated due to the
inability of suppliers to deliver suitable hydraulic pumps on time. Currently,
including both replacement and new installations, Emerald operates six wells
with ESPs, which offer greater variability of pump output and better overall
reliability. Emerald plans to replace three more of the hydraulic pumps with
ESPs by the year end.


The Campo Rico field has three wells on production at an aggregate rate of about
1,560 bopd. The Vigia field has three wells on production at an aggregate rate
of about 640 bopd. The Centauro Sur field is currently being produced with two
wells at about 1,100 bopd. As these fields are settling into long term flow
regimes, the initial production rates are now stabilising. The Gigante No.1A
well has undergone a scheduled chemical treatment and is on production at
approximately 900 bopd. The Silfide No.1 well is shut-in pending a decision to
fracture the productive horizon.


The Gigante 1A well and the Campo Rico field are now operated as joint
operations with Ecopetrol with both production and costs shared between the
parties in accordance with the relevant Association Contracts. Emerald has
applied for the commerciality status of the Vigia, Silfide and Centauro Sur
fields and is awaiting Ecopetrol's decision.


Operations review - Syria


North Souedieh exploration well was drilled during the second quarter of 2006.
Gas shows were recorded while drilling and interpretation of the electric
wireline logs identified potential hydrocarbon zones. However, no hydrocarbons
were recovered when tested using a wireline conveyed testing tool. The well has
been suspended while the acquired data is reviewed and alternative testing
operations are considered.


The Tigris exploration well was spud on 10 September 2006. The well is expected
to take between 90 and 120 days to drill to its targeted depth of 4,500 metres
and will test the Tigris prospect located beneath the large Souedieh field. The
Souedieh field, owned and operated by Syrian Petroleum Company (SPC), currently
produces approximately 85,000 bopd. The S1100 well drilled more than a decade
ago by SPC penetrated the Tigris prospect and encountered gas in several zones,
some of which, when flow tested, produced gas to surface. The potential
hydrocarbon layers within the Tigris prospect have been mapped using the 3D
seismic data, previously acquired by SPC over the Souedieh field. Using the
existing dataset, Ryder Scott LP, independent reserve engineers, completed a
study of the Tigris structure to determine its potential to contain either gas
or oil.


The Ryder Scott study has concluded that, if the Tigris structure contains gas,
then the potential gross Probable and Possible reserves are 884 bcf of gas
(equivalent to 145 mmboe) and, if the Tigris structure is an oil accumulation,
then the potential gross Possible reserves are 104 mmbbl of oil and 64 bcf of
gas (equivalent to 114 mmboe). Ryder Scott has valued Emerald's share at $494
million in the event that Tigris is a gas accumulation and at $452 million in
the event that Tigris is an oil accumulation. Emerald holds a 50% working
interest in the contract to explore, develop and produce hydrocarbons from Block
26. Copies of the Ryder Scott reserves and evaluation reports may be found on
the Group's web site.


Outlook


Over the next twelve months, the Group is planning to drill at least four
exploration wells and a number of development wells. The thrust for operations
will be to establish early production from the successful new wells and to
maintain steady production from existing wells in the currently producing
fields.



Alastair Beardsall, Chairman and Chief Executive

19 September 2006