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

Acquisition of 50% of SNG Overseas and Placing announced.

cannot see this is bad news other than the discount to the placing whioch always happens expect recovery of this tomorrow

stockdog

Russian deal aborted, the aquisition very interesting.

Acquisition and Placing

RNS Number:1013U
Emerald Energy PLC
14 November 2005





NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE
UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF IRELAND OR
THE REPUBLIC OF SOUTH AFRICA



EMERALD ENERGY PLC

("Emerald" or the "Company")



Acquisition of 50 per cent. participating interest in Block 26 in Syria
(the "Acquisition")
and
placing of 5,090,000 new ordinary shares of 10p each in the capital
of the Company (the "Placing Shares") at a price of 158p per Placing Share
(the "Placing") raising approximately #8.0 million



Highlights


* Acquisition of 50 per cent. participating interest in the Contract for
the Exploration, Development and Production of Petroleum covering Block 26 in
Syria (the "Block 26 EDP Contract")


* Total consideration for the Acquisition is US$16.9 million, comprised of
US$7.3 million payable in cash on completion and the issuance of 3.5 million
new ordinary shares after 18 months


* A placing of 5,090,000 Placing Shares raising approximately US$13.1
million (net of expenses) to fund the Acquisition and related working capital
requirements of approximately US$5.8 million


* Admission expected to become effective and dealings in the Placing
Shares to commence on 17 November 2005 (the "Admission")


Introduction


Emerald announces that it has entered into a Share Purchase Agreement with
Soyuzneftegas Limited (the "Vendor") to acquire the entire issued share capital
of SNG Overseas Limited ("SNGO"), a special purpose investment vehicle used by
the Vendor to hold and fund its participating interest in the Block 26 EDP
Contract, for a total consideration of approximately US$16.9 million. The
consideration payable comprises:


* a cash payment of US$7.3 million, payable on completion of the transaction,
for the entire issued share capital of SNGO and to settle the
outstanding shareholder loan granted to SNGO by the Vendor; and


* 3.5 million new ordinary shares of 10p each in the capital of the Company to
the Vendor on 18 May 2007, the date falling eighteen months
after completion of the Acquisition, these shares being worth approximately
US$9.6 million at the Placing price.


The gross assets of SNGO, which total approximately US$7.3 million, consist
solely of the investment in the Block 26 EDP Contract; this investment has been
funded by a shareholder loan granted to SNGO by the Vendor. As SNGO is a special
purpose investment vehicle, there are no profits or losses attributable to it.





The Placing


Emerald is raising approximately #7.5 million, net of expenses, (approximately
US$13.1 million at the dollar/sterling exchange rate of 1.7405) through the
placing of 5,090,000 new ordinary shares at 158 pence per share. The net
proceeds of the Placing will be used to fund the US$7.3 million cash
consideration to purchase SNGO and to fund the Company's working capital
requirements in respect to its obligations pursuant to the Block 26 EDP
Contract. Evolution Securities Limited is acting as financial adviser to the
Acquisition and as sole book runner, co-lead manager and underwriter to the
Placing. Haywood Securities (UK) Ltd is acting as co-lead manager to the
Placing.


Application has been made to the UK Listing Authority and to the London Stock
Exchange for the Placing Shares to be admitted to the Official List and to
trading on the London Stock Exchange's market for listed securities
respectively. Admission is expected to become effective and dealings in the
Placing Shares are expected to commence on 17 November 2005.



Information on Block 26


Block 26 covers an area of approximately 11,000 sq km and surrounds existing
discovered oil fields that currently produce over 85,000 bopd. The 20-26 degrees
API gravity crude oil with a high sulphur content that is produced from the
Cretaceous limestone reservoirs in these fields is processed and then
transported through the existing pipeline infrastructure either for domestic
consumption or for export.


Besides the Cretaceous, particularly in the deeper Palaeozoic horizons, there is
further hydrocarbon potential. Several wells have been drilled on Block 26 to
the Palaeozoic, some with indications of hydrocarbon presence, but no commercial
discovery. The leads and prospects currently mapped in the Palaeozoic are larger
than those mapped in the Cretaceous and they are the focus of current technical
studies in the lead up to the drilling campaign.


The rights under the Block 26 EDP Contract include rights under the discovered
fields within Block 26 and undivided rights elsewhere within the block. The
Block 26 EDP Contract also conveys rights of access to and use of existing
production and transportation infrastructure. Block 26 is operated by Gulfsands
Petroleum Plc ("Gulfsands"), an AIM listed company, who, following the
completion of the Acquisition, will continue to own a 50 per cent. participating
interest in the Block 26 EDP Contract. The Government of the Syrian Arab
Republic and the Syrian Petroleum Company are also parties to the Block 26 EDP
Contract.


In the event of commercial discovery, a Syrian operating company is to be formed
to conduct and oversee development and production. The operating company would
be owned as to 50% by the Contractor (defined as the owners of the participating
interest in the Block 26 EDP Contract), and 50% by Syrian Petroleum Company.
Under the terms of the Block 26 EDP Contract, commercial oil production is
allocated first to satisfy the 12.5% royalty, part of the remaining production
is used for cost recovery of the Contractor's investment and the remaining
surplus is shared between the Contractor and Syrian Petroleum Company in various
proportions according to the level of production. If commercial production does
not occur within four years of the discovery with respect to oil, or seven years
with respect to gas, then the development area is to be surrendered.


Under the terms of the Block 26 EDP Contract, the minimum work programme for the
initial phase that must be completed by August 2007 includes the reprocessing of
existing seismic data, the acquisition of at least 500 km of new seismic data
and the drilling of four wells, two of which have to be drilled to test
Palaeozoic reservoirs. Gulfsands is currently acquiring 1,170 km of 2D seismic
and planning the drilling of at least two exploration wells in 2006.


Benefits of the Acquisition


* Emerald has entered into a new geographic area with a partner already
established in country.


* Emerald has gained participation in a block with 27 leads and
prospects at an attractive cost.


* The exploration programme for Block 26 is already underway.


* The risk/reward profile for exploration in Block 26 is similar to that
successfully pursued by Emerald in Colombia.


* Gulfsands, Emerald's partner in Block 26, is an experienced operator.


Update on existing operations and interests


* Colombia


The expansion of production facilities at Vigia is progressing and the Company
continues to produce from 6 wells a gross volume of 4,800 bopd. The Company is
advancing preparations for its 2006 drilling programme and other capital
projects to enhance its operations in Colombia. The Company has recently
announced its third exploration discovery at Silfide #1 and is evaluating
various artificial lifting methods to place this well on test production.


* Russia


On 11 November 2004, the Company announced that it had entered into a
conditional Sale and Purchase Agreement with Star Capital Research Limited to
acquire a 25 per cent. interest in JSC Krasnoyarskgazprom (the
"Krasnoyarskgazprom Agreement"). Subsequently, on 9 March 2005 the Company
announced that it had extended the longstop date for completion to 31 December
2005. However, as the Company has been unable to satisfy itself with regard to
the security of title to the said 25 per cent. interest in the licences
previously announced to be held by JSC Krasnoyarskgazprom, the
Krasnoyarskgazprom Agreement has been terminated.



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


"The acquisition of 50 per cent. of Block 26 provides Emerald with access to a
portfolio of exploration opportunities to be developed in partnership with
Gulfsands, an experienced E&P operator. A seismic programme to acquire 1,170 km
of 2D data is underway and plans are well advanced to drill two exploration
wells next year. We look forward to being able to deliver value to our
shareholders whilst working with Gulfsands on this exciting project."


Presentation on the Acquisition and Placing


A copy of the presentation entitled "An acquisition for growth" used for the
Placing has been placed on the Company's web site at www.emeraldenergy.com.



14 November 2005



Enquiries:


Emerald Energy plc:


Helen Manning: 020 7925 2440


Evolution Securities Limited:


Chris Sim

Gina Gibson: 020 7071 4300


Haywood Securities (UK) Ltd:


Simon Catt, Investment Adviser, Institutional Sales & Trading: 020 7031 8000



This announcement does not constitute, or form part of, an offer or solicitation
of an offer, to purchase or subscribe for, underwrite or otherwise acquire, any
rights, shares or other securities. Members of the general public are not
eligible to take part in the securities offering. The securities are not and
will not be offered other than to persons who trade or invest in securities in
the conduct of their profession or trade (which includes banks, securities
intermediaries (including dealers and brokers), insurance companies, pension
funds, other institutional investors and commercial enterprises which as an
ancillary activity regularly invest in securities). In the United Kingdom this
announcement is directed exclusively at (a) persons who have professional
experience in matters relating to investments who fall within article 19(5)
(investment professionals) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005) ("the Order") or (b) are persons falling
within article 49(2)(a) to (d) (high net worth companies, unincorporated
associations etc) of the Order or (c) other persons to whom it may be lawfully
directed (all such persons together being referred to as "Relevant Persons").
This announcement must not be acted on or relied on by persons who are not
Relevant Persons. Any investment or investment activity to which this
communication relates is available only to Relevant Persons and will be engaged
in only with Relevant Persons.


The information contained in this announcement is not an offer of securities for
sale or a solicitation of an offer to purchase securities in the United States.
The securities have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended (the "Securities Act"), or with any
securities regulatory authority of any state or other jurisdiction of the United
States and may not be offered, sold or delivered within the United States or to
US persons (as defined in Regulation S) except pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the Securities
Act and applicable state securities laws.

A few questions:

1) Why would SNG want to sell a good prospect? (not a loaded question, just plain asking)

2) What were two simultaneous 220,000 buys and then two of 10,000 each doing at 174.5 - 177p doing ahead of the announcement? Did they know in advance? Why didn't they wait till after the anonouncment?

3) Is this a good deal for EEN? I acknowledge it is probably essential for them to diversify outside Colombia sooner rather than later. Any idea of reserves estimated to lie in Block 26?

Any info/views from EEN-watchers would be appreciated as too busy earning a crust currently to DMOR.

Thanks.

sd

Go to the website and read the presentation

http://www.emeraldenergy.com/docs/Presentation-2005-Nov-Aquisition4Growth.pdf

Article worth reading on oilbarrel.com re Emerald/Syria

What is it about this stock today - buys outnumbering sells by about 20:1 and the price moves up 1.5 points

Can anyone shed any light?

Thanks

read some postive coments in shares magazine last week by their 'oil expert' this is the low imho by march will be 250p when results out just a matter of time

that good then i can get my 15k back i bought at 200-240 in april 04 i am hoping for 440 which is only 4.4p before consolidation there oil numbers are growing eVery few months and could be more joint Ventures.

Heading back up - rumours out there??

i was only looking at these today thinking why so cheap they been this price for year where lots of other oils haVe moVed on up they haVe plenty of the good stuf they are a bit of a puzle

Just peeping over the historically significant 185p level - can we hold above there?

Why today?

sd

stockdog, exactly. Ok, so oil is rallying on cold snap in US but perhaps there's final realisation about how well priced this is.

Stockdog, EEN have recently acquired a 50% interest in Block 26 in Syria,
this block is potentially massive, couple that with its Columbian assets which
have been steadly increasing output and they are expected to annouce greater
reserves.
Well worth the time to check out "Investor Presentations" on its web page.
www.emeraldenergy.com.
Could be the market has realised the potential of Syria(gpx is the partner)
or that news of an RNS (which is due) has leaked out?
Its taken a long time and required great patience, but imho this is ready to rumble.
cyril

nice one!

yesterdays afternoon took me by surprise and held onto it today got to 195p today
could touch 200p before any good news kills the price ?? perhaps will get away this time as 6000 bopd on the cards and the revalution of reserves might come out bang on year end ie in few weeks time

something in the air i think also mkt cap abv 100m after recent place so traces may be picking stakes up ?

Nice rise this week and hitting the 2 mark. Good news to follow I think and could mark the start of a new upward trend.

From a list.
FTSE Small Cap inclusions.
B01NJN3 Emerald Energy 100%.
This will have undoubtably helped th SP today.
cyril

Here are some highlights of EEN for newcomers to the share. DYOR:

1) Recently promoted to FTSE small cap index: http://www.ftse.com/tech_notices/2005/q4/FTSE_UK_Review.xls

2) Producing, profitable with net cash on the balance sheet.

3) Increased production and just about doubled production in each of the last 3 half years. Likely to end the year producing 6,000 bpd with likely more to come from the new Silfide #1 well and further drilling in Campo Rico early next year.

4) New management since mid-2003 who are getting on with the job in a steady way, in sharp contrast to the previous management

5) Drilled 6 wells this year and struck commercial oil in each and every one of them

6) 3P resources of c.26m barrels. Potential of a further 49m bbl. Excluded from these numbers are the potential resources from their Gigante field which was assessed by Schlumberger to contain >900m barrels of oil in place (this will factor down to say 80-300m barrels of recoverable oil). Gigante is currently producing around 725 bpd. http://www.emeraldenergy.com/docs/2005-Interim-Results-Presentation.pdf and http://www.emeraldenergy.com/docs/f_interim_97.htm

7) Recently done a deal with Gulfsands Petroleum to partner in exploring Block 26 in Syria. Gulfsands is doing seismic investigation as we speak, and early indications are that there might be 1bn barrels of recoverable oil. http://www.emeraldenergy.com/docs/Presentation-2005-Nov-Aquisition4Growth.pdf

8) At a recent oil barrel conference, Gulfsands showed their estimates of the prospectivity of the Block. This showed potential resources of >1bn barrels. EEN would have a share of 25% of this. Thats around 4 barrels for each EEN share. http://www.oil-barrel.com/conference/nov/gulfsands.pdf

9) They also hold Technical Evaluation Agreements for more areas of Columbia, that could well prove up.