Emerald Energy Regulatory News (EEN)

24 Sep 2007 07:01

Emerald Energy PLC24 September 2007 Emerald Energy Plc 24 September 2007 Khurbet East Operations Update, Block 26, Syria Emerald Energy Plc ("Emerald" or the "Company") would like to provide thefollowing update on activities on the Khurbet East discovery in Block 26, Syria. A further appraisal well, Khurbet East No.3, is planned to commence drilling inNovember 2007. This well will further appraise the Cretaceous Massive reservoirencountered by the Khurbet East No.1 and Khurbet East No.2 wells. Khurbet EastNo.3 is expected to have a total drilling depth of 2,150 metres and takeapproximately 45 days to drill and evaluate. The well is planned to be drilledusing the MB3 drilling rig owned by MB Drilling Overseas Limited under theexisting rig sharing contract in place with another operator in Syria. A 3D seismic survey is scheduled to commence in October 2007. The survey willacquire 150 sq.km of seismic data across the Khurbet East structure and anadditional 240 sq.km across exploration leads identified in the Khurbet Eastplay to the south of the Khurbet East field. The 3D survey across the KhurbetEast field will be used to plan well locations for field development. Theseismic acquisition is planned to be completed in January 2008 with processingand interpretation completed in the first quarter of 2008. Development planning activities have started for the commercial development ofthe Khurbet East field with initial production targeted for the second half of2008. Rights to utilize the local pipelines and other infrastructure are grantedas part of the Contract for the Exploration, Development and Production ofPetroleum for Block 26. A technical and commercial evaluation of the field, including initialdevelopment plans, is expected to be submitted to the Syrian Government and theSyrian Petroleum Company in the fourth quarter of 2007 for consideration andapproval. An evaluation of the reserves in the Khurbet East field is being conducted by anindependent engineering firm, RPS Group plc, based in London. This evaluation isexpected to be completed by the end of 2007. The operator, Gulfsands Petroleum Syria Limited, has signed an amendment to anexisting rig contract with Crosco, Integrated Drilling and Well Services,Company Ltd for the drilling of two wells by May 2008 and agreed in principlethe terms of a further rig agreement in support of the Khurbet East fielddevelopment. Emeralds' Chief Executive Officer, Angus MacAskill, said: "We are very pleased to be progressing the Khurbet East field to development andlook forward to initial production from the field in 2008. We are optimisticthat the current exploration activities in Block 26 stepping out from theKhurbet East discovery will result in the generation of prospects ready fordrilling in 2008." Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNGOverseas Ltd. Enquiries: Lisa Hibberd 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange