Emerald Energy Regulatory News (EEN)

11 Jan 2006 07:00

Emerald Energy PLC11 January 2006 Emerald Energy Plc FOR RELEASE 7:00 AM 11 January 2006 Operations Update - Block 26, Syria Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide thefollowing update based on information released by Gulfsands Petroleum PLC("Gulfsands"), the operator, for Block 26 (Syria) in which Emerald and Gulfsandseach hold a 50% working interest: Gulfsands has completed the acquisition of approximately 1,155 line kilometresof 2D seismic data within Block 26. This seismic programme exceeds the 500 linekilometre minimum work obligation for the Initial Exploration Period. Theprogramme was designed to provide additional seismic data coverage over severalpreviously identified leads as well as to identify new leads in selectedprospective areas. In the northern portion of the Block, these leads includeCretaceous reservoir targets offsetting the large Souedieh, Rumailan, Hamzeh andKaratchok fields as well as the deeper and highly prospective Paleozoicreservoir targets. Data acquired in the southwest portion of Block 26 willprovide additional seismic coverage over several previously identified Paleozoicreservoir leads. The acquired seismic data may also help to identify newexploration leads and prospects. Gulfsands expects that the processing of the seismic data will be completed inthe first quarter of 2006 and interpretation will commence immediatelythereafter. The data will be used by Gulfsands and Emerald to jointly select andrank exploration drilling locations. A copy of the presentation 'Syria Block 26 2D Seismic Program' prepared byGulfsands can be found on our website at www.emeraldenergy.com. Block 26 covers in excess of 11,000 square kilometres (2.8 million acres) and islocated in the prolific El Hasekah region of Northern Syria. There are a numberof large producing oil fields contained within Block 26, including Souedieh,Rumailan, Hamzeh and Karatchok. Production is primarily from Cretaceous agereservoirs, and the estimated ultimate recovery from these fields is in excessof 3 billion barrels of oil. Although the current producing intervals withinthese producing fields are not included within the Block 26 PSC, Gulfsands andEmerald, each with 50% working interest, do have the rights to reservoirsbeneath the existing fields and to all depths outside of existing fields withinBlock 26. Based on existing seismic data and well control, 31 prospects andleads have been identified within Block 26 and Gulfsands and Emerald plan todrill a minimum of 4 wells within Block 26 by August 2007. Alastair Beardsall, Emerald's Chairman, said: "Real progress has been made by Gulfsands, our partner, in the two months sincewe acquired our 50% interest in this project. We now look forward to thedrilling of at least 2 exploration wells in 2006." Enquiries: Helen Manning 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange