hi first time here but id like some info of you clever ppl
een anounced yesterday that they had srtuck a little oil
now the way i look at this is simple no dept more oil bigger price
so why is is going south
mm medlin or market trends and offers

15.03.2004
Campo Rico Oil Strike Could Prove A Turning Point For Emerald Energy
Good news at last for Emerald Energy, which has found oil with its first well in the Campo Rico Association Contract area in Colombias Llanos Basin. Campo Rico-1, the first exploration well to be drilled by Emerald for several years, flowed at 250 barrels per day (bpd) during testing. The London-quoted company plans to complete and produce Campo Rico-1 using a downhole pump and is aiming for first production of more than 750 bpd within eight weeks.

We are very pleased that the first well to be drilled by Emerald for several years is a technical and commercial success, we look forward to it being put on production in the near future, said Alastair Beardsall, who took on the role of chairman at the troubled company in September 2003.

Drilling of the Campo Rico well certainly helped rally the spirits of the companys beleaguered investors, with the share price more than doubling over the first few months of 2004 from 0.55p to 1.27p on Friday.

Emerald entered Campo Rico in 2002 in a bid to refocus its meagre financial resources from high risk, high cost but potentially high reward wildcatting in the Magdalena Valley area of Colombia to the lower risk, lower cost opportunities of the Llanos Basin. The Llanos Basin, which boasts an admirable 50 per cent strike rate, is home to two supergiant fields - Cusiana and Cano Limon - plus a multiplicity of small fields with high flow and recovery rates.

The Llanos has come good for Emerald Energy, which in recent years came perilously close to financial disaster. Indeed, the Campo Rico oil strike, while modest, is the first real triumph for the company since the devastating blow out at the Gigante-1A well in 2000. The Gigante oil deposit, in the Matambo Association Contract Area in the Upper Magdalena Valley, was thought to hold between 400 and 580 million barrels of oil in place. But its promise was never realised after the terrible blow out in 2000, which killed one oil worker and injured four others.

Following lengthy and expensive remedial work, the damaged Gigante-1A well now pumps about 725 bpd, but the numbers are far below the pre-accident rate of 3,500 bpd. Prior to the incident, the company had been gearing up to drill Gigante-2. Four years on and Emerald continues to seek farm-out partners to help fund that critical second well, which would confirm the fields economic viability and boost short-term cash flows.

Emerald itself also struggled to recover from the incident, which dealt a heavy blow to cash flows and proved an ongoing drain on financial and management resources. Since 2000, the management has undergone several restructurings and costs have been aggressively cut from the business. The company is now on a sounder financial footing following a rights issue in 2003 that raised 6.8 million before expenses.

Meanwhile, Emerald is building on its now longstanding relationship with state oil company Ecopetrol to take on new exploration areas in the country. At the back end of 2003, Emerald signed contracts for 63 per cent of the Fortuna block in the Middle Magdalena Basin with partners Ecopetrol (30 per cent) and Geoadinpro (7 per cent).

Emerald has identified a shallow Tertiary exploration target and a deeper Cretaceous accumulation. The first year work commitment involves the reprocessing of 100 km of existing 2D seismic and the acquisition of 50 km of new seismic at a cost of US$500,000. Should Emerald decide to continue with Fortuna in the second year, then it will be obliged to either acquire an additional 45 km of seismic or drill a shallow exploration well at a cost of US$0.5 - US$0.8million

looking advise got in at 1.30 and it has done nothing but head south since then.do i sell and take the loss our do i hold on for a few weeks to see how the new well goes...all advice would be great if any one knows anything about een...............cheers