Emerald Energy Regulatory News (EEN)

7 Jan 2008 07:00

Emerald Energy PLC07 January 2008 Emerald Energy Plc 7 January 2008 Khurbet East No.3 Well Results, Block 26, Syria Emerald Energy Plc ("Emerald" or the "Company") would like to provide thefollowing update on activities in Block 26, Syria. The Khurbet East No.3 appraisal well has reached a total depth of 2,050 metres,encountered the Cretaceous Massive reservoir as expected, and been flow testedat an average rate of 3,420 barrels of oil per day. The well was the second appraisal well drilled in the Khurbet East field,following the Khurbet East No.1 discovery, located approximately 0.9 kilometresto the northwest, and the successful Khurbet East No.2 appraisal, locatedapproximately 1.2 kilometres to the north of Khurbet East No.3. The mainobjectives of the No. 3 well were to obtain reservoir and structural informationin the Cretaceous Massive formation and conduct a production test of the mainreservoir section. The Cretaceous Massive formation was encountered at a similar depth to theKhurbet East No.1 and Khurbet East No.2 wells, and wireline logs indicate areservoir interval and reservoir properties similar to these wells. A definitiveoil-water contact has still not been defined within the main reservoir interval. Well testing operations were conducted over the full section of the main Massivereservoir. During a 24 hour flow period, oil flowed to surface under naturalflow at an average stabilised rate of 3,420 barrels per day through a 48/64 inchchoke. The oil was of approximately 26 degrees API gravity with a gas-to-oilratio of approximately 60 standard cubic feet per barrel. The results of the Khurbet East No.3 well will be included in the technical andcommercial evaluation report and independent reserves evaluation being preparedby RPS Group plc, both of which are expected to be finalised in January 2008. The technical and commercial evaluation report for the Khurbet East field isexpected to be submitted to the Syrian Government and the Syrian PetroleumCompany ("SPC") in mid January 2008. Subject to their approval, the jointventure intends to proceed as soon as practicable with the development of theKhurbet East field, with initial production targeted for the fourth quarter of2008. The 3D seismic acquisition programme across the Khurbet East field has beencompleted. Following processing and interpretation, this data will be used toassist in the selection of further development well locations and to progressnear-field exploration potential. The exploration 3D seismic acquisitionprogramme to the south of the Khurbet East field is approximately 60% completeand is expected to be completed by the end of January 2008 with processing andinterpretation to follow. Emeralds' Chief Executive Officer, Angus MacAskill, said: "We are delighted that Khurbet East No.3 well continues to demonstrate the highproduction potential of wells in the Khurbet East field. We look forward toearly development of this field with initial production in 2008, and also toprogressing the exploration programme for the remainder of the block with theresults of the 3D seismic acquisition programme" Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNGOverseas Ltd. Enquiries: Lisa Hibberd 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange