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

Not long to wait now,before knowing how much oil the Tetuan really contains

23 June 2009




Colombia - Gigante No.2 Well




Emerald Energy Plc ('Emerald' or the 'Company') is pleased to provide the following update on operations in the Gigante No.2 well in the Matambo Association Contract in Colombia. Emerald is the Operator and Ecopetrol S.A, the Colombian national oil company, is a partner in these operations.




Drilling of the Gigante No.2 well has been completed and a production liner is being run in preparation for testing operations.




Gigante No.2 has been planned primarily as a development well in the currently producing Tetuan reservoir and also to evaluate the exploration potential of the deeper Caballos formation.




The well has been drilled to a total depth of 15,630 feet, encountering hydrocarbon shows in both the Tetuan and Caballos formations. The tops of the Tetuan and Caballos formations were encountered approximately 378 feet and 338 feet structurally higher, respectively, than in the Gigante No.1A well which is significantly better than the pre-drill estimate of 260 feet.




A preliminary analysis of the drilling and wireline logging data acquired to date indicates a potentially oil bearing sandstone interval of approximately 32 feet (gross and net) in the Tetuan formation with an average porosity of approximately 10%, similar to the porosity in the Gigante No.1A production well.




In the Caballos formation, a preliminary analysis of the data indicates a 163 feet gross (107 feet net) sandstone interval with an average porosity of approximately 9%. The analysis of wireIine logging data acquired to date has not been able to confirm if the Caballos formation is oil bearing.




Due to difficult open hole conditions in the well, the Operator has decided to curtail the wireline logging operations and to run a production liner across the open hole section of the well before proceeding with flow testing of both the Tetuan and Caballos formations.




Following the liner running operation, the Operator plans to demobilise the drilling rig from the location and mobilise a smaller, lower cost rig for the testing operations. This smaller rig is expected to be operational within two weeks and the subsequent flow testing operations are expected to take up to one month to conduct.







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




'We are very pleased with the progress in the Gigante No.2 well, having successfully drilled this deep and technically complex well, and having encountered the target formations significantly higher on the structure than in the existing Gigante No.1A production well. We now look forward with our partner, Ecopetrol S.A., to the results of the testing operations and future production from this well.'

cyril

Is this good news? The price has dropped over the past week. Could be a period of consolidation. I've held for 4 years(in at 178p) and I still think this is undervalued. Is 8 too to expect by year end?

Just in, up over 10%. not sure why?
cyril

cyril
Emerald top of today's BBC "Winners List

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/default.stm

DFGO thanks,seems we.re in talks with a 3rd parrty.

Edit; Oil explorer Emerald Energy has confirmed that it has received an approach which could lead to a possible cash offer for the Company.

Emerald's statement follows press speculation about a possible bid and the recent increase in its share price.

The statement says: "It should be emphasised that the discussions are at a preliminary stage.

"Accordingly, no assurances can be given that any formal offer will be forthcoming or that any transaction will occur."
cyril

cyril

yes a figure 7.50 mention by Ft,worth a lot more.

ah, that lovely word "worth" ..... as i have said before, something is only worth as much as someone else is prepared to pay

At 750p this will be bought on the cheap and yes "worth a lot more". Its "worth" noting that DFGO's has an indepth knowledge of this company who along with other such posters has helped bring the its true merits to us less able.
So once again yes, very cheap against the reconised norm of valuing an E&P company.
cyril

i do not dispute the sentiment, but merely the reality of life

Yes its true that's the nature of business, still hoping the 750p is the opening shot?
DfGO; a question for you, do you think that the interested party will have access
to G2 results? My thoughts they're so close to flow rates that they must have some or most by now?
cyril

I've set up a blog with research links for the under-researched:

http://emerald-energy-een.blogspot.com/

Kiwi7 thanks, a great idea and most useful, u;ll add it to the haeder.
Answer to my question,
14 July 2009




Colombia - Gigante No.2 Well




Emerald Energy Plc ('Emerald' or the 'Company') is pleased to provide the following update on well testing operations in the Gigante No.2 well in the Matambo Association Contract in Colombia.




The first flow testing operation in the Caballos formation has been successfully completed with 32 degree API oil flowing to surface, under natural flow, at a rate of approximately 185 barrels per day.




A flow test was conducted over a total perforated interval of 84 feet in the Caballos formation. Oil of approximately 32 degrees API gravity flowed to surface, under natural flow and through a 24/64 inch choke, at an average rate of 185 barrels per day over a 9 hour period with a water cut of approximately 3.5% which may have been the return of fluids lost to the formation during drilling operations.




An analysis of the pressure data acquired during the flow test indicates that formation damage has occurred during drilling. This data also indicates that the pressure in the Caballos formation has not been depleted by production from the Tetuan reservoir in the Gigante No.1A well.




The Company is now preparing to conduct a further flow test of the Caballos formation using an electrical submersible pump, a method of artificial lift currently used for production in the Gigante No.1A well.




The Caballos formation is the exploration target in the Gigante No.2 well, underlying the Tetuan formation which is the producing reservoir in the Gigante No.1A well and the development target in the Gigante No.2 well. The Caballos formation was encountered approximately 338 feet structurally higher in the Gigante No.2 well than in the Gigante No.1A well.




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




'We are delighted to have demonstrated that the Caballos formation, the exploration target in this well, is oil bearing and look forward to the results of further testing of this formation before proceeding to the flow testing of the Tetuan reservoir.'
cyril

Missed out on the takeover...been in and out for years...then not watching and missed the first rise, now too late..damn !.

not necessarily .... there may not even be a t/o .... or on the other hand, it just may be at a worthwhile premium to the current price

Still hesitating to get in at this price....to be worthwhile, would have to go to 750p.....like you say : might not.

The one to get in might be VPC.....

If someone is prepared to pay 750p then it must be worth a whole lot more,1150p or even more, so short/long term it looks good.
Disappointing the significance of todays news has been overlooked?
cyril

i wonder how valid the closing price of 665 will prove to be

Great day,market waking up to its potential.

No yellow flags here?
cyril