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Emerald Provides Khurbet East No.1 well in Syria Exploration Update

Source: www.gulfoilandgas.com 5/18/2007, Location: Middle East

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The Khurbet East No.1 exploration well was spud in mid-February 2007 on the Khurbet East prospect, a fault-bound structural culmination, with closure mapped at several potential reservoir levels including Cretaceous, Triassic and Palaeozoic ages. The Khurbet East prospect is located approximately 12 kilometres southwest of the Souedieh oil field and 12 kilometres south of the Roumelan oil field.

Hydrocarbon shows were encountered while drilling the Tertiary Chilou and Cretaceous Massive formations. Wireline logs indicated a gross hydrocarbon interval of 31 metres and a net hydrocarbon interval of approximately 22.5 metres in the Massive formation. The presence of hydrocarbon in the Massive formation was confirmed by a wireline formation sampler which retrieved a sample of 21 degree API gravity oil to surface. Wireline logs indicated a potential net hydrocarbon interval of approximately 26.4 metres in the Chilou formation of which some 19 metres are contiguous in the top of the Chilou 'B' formation. A wireline formation pressure sampler could not be run to confirm the presence of hydrocarbon in the Chilou formation as the sampler tools available were not suitable for large diameter well bores.

The well has reached a total drilling depth of 3,800 meters. Wireline logging indicated additional potential hydrocarbon intervals in the Triassic formations. Several intervals have been identified in the well for potential production testing which is expected to commence shortly. However, there is a possibility that the shallow zones may not be production tested in this well due to a combination of the mechanical configuration of the shallow casing strings and the rig availability which may require the Crosco 602 rig to be demobilised from the Khurbet East No.1 location prior to testing all the intervals identified for potential production testing. Any intervals not tested in this well may be production tested at a later date using a workover rig.

Immediately after completing operations on Khurbet East No.1, the Crosco 602 rig is planned to drill an appraisal well, Khurbet East No.2, on the Khurbet East prospect, with the main objective of appraising and testing the potential hydrocarbon accumulations in the Chilou and Massive formations. This well will also complete the minimum work obligation for the initial exploration phase in the block.

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