Emerald Energy Regulatory News (EEN)

9 Mar 2005 07:00

Emerald Energy PLC09 March 2005 9 March 2005 Emerald Energy Plc Operations update and news on Russian transaction Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide thefollowing news on the Company's activities: COLOMBIA - Exploration Campo Rico Association Contract: Llanos Basin. •The Vigia #1 exploration well is currently drilling below 10,600 ft. When the well reaches its planned total depth of around 11,000 ft the well will be logged and its hydrocarbon potential evaluated. Algarrobo Association Contract: Llanos Basin. •The drilling of the El Algarrobo #1 exploration well has been unavoidably delayed due to unseasonable weather having prevented the construction of the drilling location and access road. The Company now expects this well to be drilled later in 2005. Fortuna Association Contract: Middle Magdalena Valley Basin. •The Company is finalising the choice of location and program to drill one or more exploration wells in the Fortuna block in 2005. COLOMBIA - Production Campo Rico Association Contract: Llanos Basin. •Campo Rico well #1 is currently producing oil at 1,750 bopd. •Campo Rico well #2 under test produced 16degrees API gravity oil at a rate of 650 bopd from the upper M1 zone of the Mirador sands, however it is believed that water production from the lower M2 restricted the test oil flow. When the Parker 222 drilling rig has completed work at Vigia #1, it will return to Campo Rico and re-complete the #2 well to reduce the water influx. •Campo Rico well #3 under test produced 16degrees API gravity oil from three separate zones in the Mirador sands; the M3 sand produced at a rate of 250 bopd, the M2 sand at a rate of 1,100 bopd and the uppermost zone, the M1 sand, at a rate of 1,700 bopd. Initially Campo Rico #3 will be produced from the M1 sand, the zone currently being produced at Campo Rico #1. The well will be placed on production by the end of March 2005. Matambo Association Contract: Upper Magdalena Valley Basin. •Gigante well #1A is currently producing at approximately 725 bopd. The Company's wells are currently producing oil at approximately 2,475 bopd. RUSSIA On 11 November 2004 the Company announced it had entered into a Sale andPurchase Agreement to acquire 25% of JSC Krasnoyarskgasprom from Star CapitalResearch Limited. The Company remains fully committed to acquire thissignificant interest in this project. However the Company has been advised byStar Capital of a potential capital restructuring of JSC Krasnoyarskgasprom byOAO Gasprom who hold 75% of JSC Krasnoyarskgasprom. Until the details of thisrestructuring are known, and the Company is completely satisfied with anypossible implications of the restructuring, the Company will not complete theproposed transaction. The Company and Star Capital have agreed to amend thelong-stop date to complete this transaction to 31 December 2005. 2004 RESULTS The Company expects to announce its results for the year ended 31 December 2004on 15 April 2005. Alastair Beardsall, Emerald's Chairman, said: "The drilling programme inColombia is producing positive results; the increased level of production atcurrent world price for oil is having a significant and positive impact on theCompany's cash flow. By the end of this month the Company's Colombian fields areexpected to be producing over 4000 bopd, with a further increase expected whenCampo Rico #2 has been re-completed." "bopd" means barrels of oil per day Enquiries: Alastair Beardsall 020 7925 2440 This information is provided by RNS The company news service from the London Stock Exchange