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Emerald Energy Provides Syria Operations Update

Source: www.gulfoilandgas.com 6/4/2007, Location: Middle East

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Emerald Energy Plc provided the following update on operations for the Khurbet East No.1 exploration well in Block 26, Syria. Well testing operations have been conducted on the Triassic aged Kurrachine Dolomite formation in the Khurbet East No.1 well. Oil of approximately 35 degrees API gravity flowed to surface through a 32/64 inch choke at a rate of up to 478 barrels per day, with a gas-to-oil ratio averaging approximately 2,000 standard cubic feet per barrel.

No further well testing operations are planned in the shallower formations in the Khurbet East No.1 well at this time, retaining the option for further testing or production operations in the Kurrachine Dolomite in the future.

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 structure, with the main objective of appraising and testing the potential hydrocarbon accumulations in the Chilou and Massive formations. Results are expected from the Khurbet East No. 2 well in early August.

The Khurbet East No.1 well encountered four hydrocarbon bearing formations.

The Tertiary aged Chilou formation at 1,319 metres contains a potential net hydrocarbon interval of approximately 26.4 metres. 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 Cretaceous aged Massive formation at 1,917 metres contains a net hydrocarbon interval of approximately 22.5 metres. A wireline formation sampler which recovered oil samples to surface confirmed the presence of hydrocarbon in the Massive formation. The oil, based on laboratory analysis, is approximately 24 degree API gravity.

The Triassic aged Butmah formation at 2,850 metres contains a net hydrocarbon interval, as estimated by the Operator, of approximately 16 metres. A wireline formation sampler which retrieved a gas sample to surface confirmed the presence of hydrocarbon in the Butmah formation.

The Triassic aged Kurrachine Dolomite formation at 3,098 metres encountered hydrocarbon shows over an interval of approximately 60 metres. The presence of hydrocarbon in the Kurrachine Dolomite formation was confirmed by the well test conducted with a 102 metre open-hole section. The net hydrocarbon interval is uncertain as well-bore conditions resulted in inconclusive wireline logs over this section.

Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNG Overseas Ltd.

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