6th Aug 2009 07:00
Emerald Energy Plc
6 August 2009
Operations Update - Syria, Block 26
Emerald Energy Plc ("Emerald" or the "Company") is pleased to provide the following update on operations in Block 26, Syria.
Expansion of Khurbet East Field Early Production Facility
The expansion of the fluid processing capacity of the early production facility to 18,000 barrels per day has been completed.
Khurbet East No.9 and Khurbet East No.10, two of the three development wells drilled to support the additional capacity, have commenced production through the expanded facility. The current gross daily field oil production rate is approximately 14,700 barrels per day, with Khurbet East No.9 and Khurbet East No.10 contributing approximately 2,100 and 1,900 barrels per day, respectively.
Drilling operations have been completed on the Khurbet East No.11 horizontal well, the third of the three development wells drilled to support the additional fluid handling capacity, and this well is awaiting connection to the production facilities.
Khurbet East No.11 has a surface location approximately 700 metres east of the Khurbet East No.1 discovery well, and enters the Cretaceous Massive reservoir approximately 400 metres to the east of the surface location. The well was drilled to a total measured depth of 2,235 metres with an equivalent true vertical depth of 1,962 metres. The top of the oil bearing Cretaceous Massive reservoir was encountered at a true vertical depth of 1,945 metres and a horizontal section of approximately 60 metres was drilled within the uppermost part of the reservoir.
Khurbet East No.12 Delineation Well
Drilling operations have commenced at Khurbet East No.12, a vertical delineation well located approximately 3.2 kilometres south of the Khurbet East No.8 well, previously the most southerly well drilled in the field, which encountered a 15 metre net oil column within the Cretaceous Massive reservoir. The well is designed to provide geologic information on the southern limits of the Khurbet East field, establish the oil-water contact and to have the potential to be used as a water disposal well in the future. The Khurbet East No.12 well is expected to take approximately 45 days to drill and evaluate.
Yousefieh Field
A workover rig has been contracted to conduct operations in the Yousefieh No.1 and No.2 wells in the Yousefieh field, commencing with the Yousefieh No. 2 well.
Acid stimulation and flow testing operations are planned to be conducted in the Yousefieh No.2 well following the successful application of this technology in the Khurbet East No.8 well which, like Yousefieh No.2, did not flow continuously to surface prior to acid stimulation during flow testing operations. If this operation is successful, there may be potential for contingent resources within the Yousefieh field to be re-classified as reserves.
In the Yousefieh No.1 well re-entry, remedial cementing and completion operations are planned to be conducted in preparation for production from the well in the future.
Khurbet East No.7 Well Re-entry
Following workover operations in the Yousefieh field, the workover rig is planned to conduct one further operation under the current contract.
The Khurbet East No.7, drilled in the north of the field, encountered reservoir porosity in the range of 5% to 10%, significantly lower than encountered in the central portion of the field, and wireline logging was unable to directly identify an oil-water contact. The re-entry programme in Khurbet East No.7 is planned to establish the well's potential for either oil production or water disposal.
Emerald's Chief Executive Officer, Angus MacAskill, said:
"We are very pleased with the increased oil production levels resulting from the expansion of the early production facility, currently up over 35% from the June average, and look forward to the results of the tie-back of the Khurbet East No.11 well and the upcoming well re-entry programme."
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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