Emerald Energy Regulatory News (EEN)

16 Mar 2006 07:01

Emerald Energy PLC16 March 2006 Emerald Energy Plc FOR IMMEDIATE RELEASE 16 March 2006 Operations Update - Colombia Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide thefollowing update: Reserves The interpretation of 3D seismic data acquired in 2005 is now complete; theVigia structure is now mapped as two separate accumulations and the 3 wellsdrilled on Vigia have all penetrated the northern high, the Vigia field. RPSEnergy, an independent consultancy specialising in petroleum reservoirevaluation, has completed a reserves and resources evaluation for the Vigiastructures and reports that as at 1 January 2006, the Vigia field containedProved plus Probable reserves of 2.4 million barrels of oil. According to RPSEnergy, Proved plus Probable plus Possible reserves of the Vigia field are 4.9million barrels of oil. In addition, RPS Energy reports the as yet un-drilledsouthern structure may contain prospective resources of up to 4.6 millionbarrels of oil. As at 1 January 2006, the combined Proved plus Probable reserves of the Gigante,Campo Rico and Vigia fields were 14.5 million barrels of oil (as derived fromRPS Energy's 2005 reserves report for Gigante and Campo Rico and 2006 reservesreport for Vigia, and adjusted for 2006 production). On the same basis, thecombined Proved plus Probable plus Possible reserves of these three fields were30.3 million barrels of oil. Exploration Centauro Sur prospect: The Centauro Sur prospect is located to the south of the Campo Rico field. PrideRig No 14 commenced drilling the Centauro Sur No.1 exploration well on 14 March2006. El Algarrobo block (operated by Rancho Hermoso): The exploration well Agueda No.1, drilled by Saxon Rig No 223, has reached atotal depth of 9,980 ft. The well has been logged and the rig is preparing torun and cement the final casing string. The well will then be perforated andflow tested. Production The workover of the Gigante No.1A well to replace the tubing and install anelectrical submersible pump (ESP) is now complete. The well is currentlyproducing in excess of 800 bopd. The lifting rate of the ESP is being increasedgradually to optimise the production rate. The remedial work on Vigia No.2 is now complete and the well is producing 200barrel of oil per day (bopd) from the Une formation. In the period from 1 January 2006 to date, daily gross production averaged 4,362bopd. Temporary flattening of production growth has been caused by reducedproduction at the Gigante field in the run-up to the workover and by failures ofsurface hydraulic pumps operated in the Campo Rico and Vigia fields. GiganteNo.1A is now back on production and new, larger, surface hydraulic pumps havebeen purchased for the Campo Rico and Vigia fields. Alastair Beardsall, Emerald's Chairman, said:"We are confident that focussed efforts in 2006 will contribute to maintaininggrowth in our Colombian operations." Enquiries: Helen Manning 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange