Emerald Energy Regulatory News (EEN)

5 Oct 2005 11:49

Emerald Energy PLC05 October 2005 Emerald Energy Plc Operations Update Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide thefollowing update: The Company has contracted Ismocol, a Colombian drilling contractor, to drillits exploration well, Silfide No.1, to a depth of approximately 5,000 ft in theFortuna Block in the Middle Magdalena Valley, Colombia. The rig is currentlybeing mobilized and plans to spud the well on 7 October 2005. The Silfide No.1exploration well will target the, as yet un-drilled, Lisama sands. It had previously been announced that Silfide No.1 was to be drilled by Saxon'sRig No. 222. However the increased activity in the worldwide rig market hasdriven rig day rates to a level where the operational advantages of using anexisting contractor's rig did not compensate for the additional costs of usingan over sized rig to drill to the relatively shallow depths for the proposedwell. Under the contract with Ismocol the rig day rate and mobilization chargesare substantially less that those proposed by Saxon. The Company is currently producing in excess of 4,300 barrels of oil per dayfrom 5 of its 7 production wells; the remaining 2 wells will be put onproduction as the construction of enlarged surface production facilites iscompleted. Alastair Beardsall, Emerald's Chairman, said: "Silfide No.1 is the 1stexploration well to be drilled into the Lisama sands on the Fortuna block andwill fulfill this years drilling commitment under the Fortuna AssociationContract." Please note the Company's web site at www.emeraldenergy.com has been updatedwith a copy of the new IFRS accounting policies and the presentation "InterimResults to 30 June 2005 & Operation Update". Enquiries: Helen Manning 020 7925 2440 05 October 2005 This information is provided by RNS The company news service from the London Stock Exchange