Emerald Energy Regulatory News (EEN)

26 Jan 2007 09:04

Emerald Energy PLC26 January 2007 Emerald Energy Plc 26 January 2007 Helen Exploration and Production Contract Award in Colombia Emerald Energy Plc ("Emerald" or the "Company") is pleased to announce that ithas been awarded a new exploration & production contract (the "Contract") inColombia and has entered into an agreement with a co-venturer to jointly explorethe contract area. The Helen Contract, awarded by the National Hydrocarbon Agency of Colombia("ANH") is located in the Putumayo Basin in south-west Colombia and covers anarea of 213 sq. km. The initial phase of the exploration period is up to 16months and the minimum work programme comprises the acquisition of 30 km of new2D seismic data and the re-processing of 120 km of existing 2D seismic data. Ifthe second phase is entered, the minimum work programme includes the drilling of1 well to an estimated depth of 10,000 ft. Emerald has entered into an agreement with Vetra Energy Group LLC ("Vetra"),subject to approval by the ANH, under which Vetra will undertake 100% of thecost of the initial phase of exploration and will be assigned an 85% interestin, and operatorship of the Contract. Emerald will retain a 15% interest in theContract and will be fully carried through the initial phase of exploration. Emeralds' Chief Executive Officer, Angus MacAskill, said: "We are very pleased with the award of our third ANH E&P Contract in Colombia.The new contract builds our position in the Putumayo Basin and the deal withVetra minimises our capital exposure while retaining a material interest. Welook forward to working with our new partners in this area." Enquiries: Helen Manning 020 7925 2440 Background information : Vetra Energy Group L.L.C. (previously Vetra Group A.V.V) is a private companyregistered in the United States. Vetra Group A.V.V. was created in October 2003by a group of executives from Petroleos de Venezuela, S.A., ("PDVSA"), theVenezuelan state oil company, with the aim of building a portfolio of operatedpetroleum assets and providing consultancy services. Vetra's President, Chief Executive Officer and Chairman is Mr. Calderon Bertiwho has formerly held the positions of President of OPEC, President of PDVSA,Minister of Energy and Mines and Minister of Foreign Relations in Venezuela. . Since 2003, Vetra has developed a portfolio of interests in three fields inColombia (La Rompida, Sur Oriente, Arjona) and one multiple services contract inthe Pirineos field in Mexico. This information is provided by RNS The company news service from the London Stock Exchange