Emerald Energy Regulatory News (EEN)

2 Jun 2006 07:01

Emerald Energy PLC02 June 2006 Emerald Energy Plc FOR IMMEDIATE RELEASE 2 June 2006 Operations Update - Syria - Souedieh North No.1 Well Emerald Energy Plc ("Emerald" or the "Company") would like to provide thefollowing update: The drilling of Souedieh North exploration well in Block 26 Syria has beencompleted. While drilling a series of hydrocarbon shows were recorded andanalysis of the electric wireline logs in the Tertiary and Cretaceous reservoirsections of the well indicate potential hydrocarbon zones. However, wirelineconveyed sampling tools did not recover any hydrocarbon fluids. Preliminaryanalysis indicates that the hydrocarbon is low API gravity oil with a highviscosity and the low porosity and permeability reservoirs may produce fluidafter mechanical or chemical stimulation. A detailed study of the drilling, wireline and sidewall core data from the wellis being undertaken with a review of the seismic data over the area. The wellwill be suspended in order to complete these studies and determine if thesereservoirs may be suitable for a fracture stimulation, or similar, testingprogram, or whether the well should be deepened. No production testing has beenperformed on the well but may be considered as part of any future testingprogram after these further analyses have been completed. Alastair Beardsall, Emerald's Chairman, said: "It is frustrating to see shows while drilling, and record an apparenthydrocarbon column on the wireline logs, yet not be able to recover anyhydrocarbon fluids. We shall study the results from the well and determine anyfurther work program accordingly. The evidence from the Souedieh North well isencouraging and will help to evaluate the other Cretaceous leads on Block 26.Our efforts and attention will now move to the drilling of Tigris No.1 that isscheduled to start in August" Emerald holds a 50% interest in Block 26 in its 100% subsidiary SNG OverseasLtd. Enquiries: Helen Manning 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange