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8 Jul 2008 07:00
Emerald Energy Plc
8 July 2008
Colombia - Operations Update
Emerald Energy Plc ("Emerald" or the "Company") would like to provide the following update on development operations in Colombia.
Vigia No.5 Well Result
The Vigia No.5 development well in the Vigia field, has been drilled to the target reservoirs and completed as an oil producer.
The well encountered the targeted Cretaceous Une and Gatcheta reservoirs higher than anticipated in the pre-drill estimates. Both reservoirs were oil-bearing with more net pay thicknesses in the Une and Gatcheta reservoirs than were seen in the Vigia No.1 well, the previously best performing well in the field.
Vigia No.5 was completed in the Une reservoir and initially tested, under natural flow, at a rate of over 1,000 barrels of oil per day with only a small amount of water.
Following these encouraging results in the Vigia No.5 well, the Company has decided to drill a further development well, Vigia No.6, in the Vigia field. This well will commence as soon as the rig-move has been completed. The Company believes that there may be potential for at least one further development well in the field to optimise recovery.
Production Update
During the first half of 2008, gross production averaged 2,901 barrels of oil per day and net entitlement averaged 1,621 barrels of oil per day. Production was lower than expected due to a second failure of the electrical submersible pump in the Gigante No.1A well; the pump was replaced with a larger pump and the well was returned to production in late June. Gross production in early July has been over 4,000 barrels of oil per day as the Vigia No.5 and Gigante No.1A wells have been stabilising.
Emeralds' Chief Executive Officer, Angus MacAskill, said:
"We are delighted with the result of the Vigia No.5 well and the additional potential of the field identified by this well. We look forward to increased production from both the Vigia and Campo Rico development wells, planned for later in the year, contributing to strong second-half production in Colombia."
Enquiries: Lisa Hibberd 020 7925 2440
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