2nd Sep 2009 08:00
Emerald Energy Plc
2 September 2009
Colombia - Mirto No.1 Well Operations Update
Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the following update on operations in the Maranta block in Colombia.
The Mirto No.1 well was drilled to a total depth of 11,578 feet and, based on oil and gas shows while drilling and wire-line log evaluation, encountered four potentially hydrocarbon bearing intervals. Flow tests have been conducted on three of these intervals, with one interval flowing at a material oil rate. The fourth interval is currently being tested.
The Cretaceous aged Caballos sand interval of 120 feet gross (52 feet net), with an average porosity of 13%, was flow tested with only formation water recovered at an average rate of 112 barrels per day.
The Cretaceous aged Villeta T sand interval of 36 feet gross (27 feet net), with an average porosity of 17 %, was flow tested with an average oil rate of 8 barrels per day with a water cut of 97 %
The Cretaceous aged Villeta U sand was encountered at 11,030 feet with a gross interval of 80 feet (65 feet net sandstones) and an average net porosity of 17 %. An interval of 20 feet at the top of the sand was flow tested through a 128/64 inch choke, under artificial lift using a jet pump, at an average oil rate of 731 barrels per day of 32.5o API crude over a 48 hour period with an average water cut of 26 %, which may have been the return of fluids lost to the formation while drilling.
The Cretaceous aged Villeta N sand interval of 7 feet gross (7 feet net) was encountered at 10,405 feet with an average porosity of 14 % and is currently being tested.
Emerald's Chief Executive Officer, Angus MacAskill, said:
"We are very pleased to have discovered and flow tested oil in the Mirto No.1 well, the Company's first exploration well in the Putumayo region in the south of Colombia. We look forward to the results of the flow testing operations in Villeta N, the final sand to be flow tested in this well."
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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