Emerald Energy Regulatory News (EEN)

4 Jun 2007 07:04

Emerald Energy PLC04 June 2007 Emerald Energy Plc 4 June 2007 Operations Update: Khurbet East No.1, Block 26, Syria Emerald Energy Plc ("Emerald" or the "Company") would like to provide thefollowing update on operations for the Khurbet East No.1 exploration well inBlock 26, Syria, following the release of information by the Gulfsands Petroleum(the "Operator"). Well testing operations have been conducted on the Triassic aged KurrachineDolomite formation in the Khurbet East No.1 well. Oil of approximately 35degrees API gravity flowed to surface through a 32/64 inch choke at a rate of upto 478 barrels per day, with a gas-to-oil ratio averaging approximately 2,000standard cubic feet per barrel. No further well testing operations are planned in the shallower formations inthe Khurbet East No.1 well at this time, retaining the option for furthertesting or production operations in the Kurrachine Dolomite in the future. Immediately after completing operations on Khurbet East No.1, the Crosco 602 rigis planned to drill an appraisal well, Khurbet East No.2, on the Khurbet Eaststructure, with the main objective of appraising and testing the potentialhydrocarbon accumulations in the Chilou and Massive formations. Results areexpected from the Khurbet East No. 2 well in early August. The Khurbet East No.1 well encountered four hydrocarbon bearing formations. The Tertiary aged Chilou formation at 1,319 metres contains a potential nethydrocarbon interval of approximately 26.4 metres. A wireline formation pressuresampler could not be run to confirm the presence of hydrocarbon in the Chilouformation as the sampler tools available were not suitable for large diameterwell bores. The Cretaceous aged Massive formation at 1,917 metres contains a net hydrocarboninterval of approximately 22.5 metres. A wireline formation sampler whichrecovered oil samples to surface confirmed the presence of hydrocarbon in theMassive formation. The oil, based on laboratory analysis, is approximately 24degree API gravity. The Triassic aged Butmah formation at 2,850 metres contains a net hydrocarboninterval, as estimated by the Operator, of approximately 16 metres. A wirelineformation sampler which retrieved a gas sample to surface confirmed the presenceof hydrocarbon in the Butmah formation. The Triassic aged Kurrachine Dolomite formation at 3,098 metres encounteredhydrocarbon shows over an interval of approximately 60 metres. The presence ofhydrocarbon in the Kurrachine Dolomite formation was confirmed by the well testconducted with a 102 metre open-hole section. The net hydrocarbon interval isuncertain as well-bore conditions resulted in inconclusive wireline logs overthis section. Emeralds' Chief Executive Officer, Angus MacAskill, said: "We are very pleased to have established hydrocarbon flow from the KurrachineDolomite and look forward to the appraisal of the Chilou and Massive formationsin the Khurbet East No.2 well." Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNGOverseas Ltd. Enquiries: Helen Manning 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange