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14 Jul 2009 07:00
Emerald Energy Plc
14 July 2009
Colombia - Gigante No.2 Well
Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the following update on well testing operations in the Gigante No.2 well in the Matambo Association Contract in Colombia.
The first flow testing operation in the Caballos formation has been successfully completed with 32 degree API oil flowing to surface, under natural flow, at a rate of approximately 185 barrels per day.
A flow test was conducted over a total perforated interval of 84 feet in the Caballos formation. Oil of approximately 32 degrees API gravity flowed to surface, under natural flow and through a 24/64 inch choke, at an average rate of 185 barrels per day over a 9 hour period with a water cut of approximately 3.5% which may have been the return of fluids lost to the formation during drilling operations.
An analysis of the pressure data acquired during the flow test indicates that formation damage has occurred during drilling. This data also indicates that the pressure in the Caballos formation has not been depleted by production from the Tetuan reservoir in the Gigante No.1A well.
The Company is now preparing to conduct a further flow test of the Caballos formation using an electrical submersible pump, a method of artificial lift currently used for production in the Gigante No.1A well.
The Caballos formation is the exploration target in the Gigante No.2 well, underlying the Tetuan formation which is the producing reservoir in the Gigante No.1A well and the development target in the Gigante No.2 well. The Caballos formation was encountered approximately 338 feet structurally higher in the Gigante No.2 well than in the Gigante No.1A well.
Emerald's Chief Executive Officer, Angus MacAskill, said:
"We are delighted to have demonstrated that the Caballos formation, the exploration target in this well, is oil bearing and look forward to the results of further testing of this formation before proceeding to the flow testing of the Tetuan reservoir."
Enquiries: Lisa Hibberd 020 7925 2440
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers (the "Code"), if any person is, or becomes, 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of the Company, all 'dealings' in any 'relevant securities' of the Company (including by means of an option in respect of, or a derivative referenced to, any such 'relevant securities') must be publicly disclosed by no later than 3.30pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which any offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the 'offer period' otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an 'interest' in 'relevant securities' of the Company, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant securities' of the Company by any offeror or the offeree company, or by any of their respective 'associates', must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose 'relevant securities' 'dealings' should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's (the "Panel") website at www.thetakeoverpanel.org.uk.
'Interests in securities' arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a 'dealing' under Rule 8 you should consult the Panel.
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