Emerald Energy Regulatory News (EEN)

27 Jul 2007 07:00

Emerald Energy PLC27 July 2007 Emerald Energy Plc27 July 2007 Khurbet East No.2 Well Results, Block 26, Syria Emerald Energy Plc ("Emerald" or the "Company") would like to provide thefollowing update on activities in Block 26, Syria. The Khurbet East No.2 appraisal well has reached a total depth of 2,050 metres.The well was drilled to appraise the Khurbet East No.1 discovery, locatedapproximately 1.2 kilometres to the southwest of Khurbet East No.2, and wasplanned to penetrate the Tertiary Chilou and Cretaceous Massive formations. The Cretaceous Massive formation was encountered at 1,931 metres. Wireline logsindicated a gross hydrocarbon interval of 49 metres and a net hydrocarboninterval of 29 metres. No clear oil/water contact was seen on the logs andtherefore the thickness of the oil interval may be greater than currentlyinterpreted. A formation pressure sampler confirmed the hydrocarbon gradientthat was encountered in the Massive formation in the Khurbet East No.1 well. Well testing operations were conducted over the upper 10 metres, approximately,of the Massive formation. During a 16 hour flow period, oil flowed to surfaceunder natural flow through a 32/64 inch choke at an average rate of 710 barrelsper day, increasing to a final rate of 820 barrels per day. The oil was ofapproximately 26 degrees API gravity with a gas-to-oil ratio of approximately 15standard cubic feet per barrel. The results of the testing operation indicatevery good formation permeability and it is believed that this production ratewould be materially enhanced with artificial lift methods. The Tertiary Chilou formation was encountered at 1,317 metres. The results of aformation pressure sampler indicated this formation to be mainly water bearingat this location and it is therefore considered unlikely to contain hydrocarbonin sufficient quantities to support commercial development. The Khurbet East No.2 well has been suspended, retaining the options of furthertesting or future production from this location, and the rig has beende-mobilised from the location. Further appraisal of the Khurbet East discovery will now continue with theacquisition of a 3D seismic survey over the structure, planned to commence inSeptember 2007. The results of this survey will be used to plan further welllocations. Emeralds' Chief Executive Officer, Angus MacAskill, said: "We are very pleased with the results of the Massive formation which encountereda thicker oil bearing interval than seen in Khurbet East No.1 and establishedexcellent well productivity, both of which exceeded expectation. We now lookforward to progressing appraisal and development activities" Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNGOverseas Ltd. Enquiries: Helen Manning 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange