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Emerald Energy Announces Khurbet East No.2 Well Results, Block 26, Syria

Source: www.gulfoilandgas.com 7/27/2007, Location: Middle East

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Emerald Energy Plc provides the following update on activities in Block 26, Syria. The Khurbet East No.2 appraisal well has reached a total depth of 2,050 metres. The well was drilled to appraise the Khurbet East No.1 discovery, located approximately 1.2 kilometres to the southwest of Khurbet East No.2, and was planned to penetrate the Tertiary Chilou and Cretaceous Massive formations.

The Cretaceous Massive formation was encountered at 1,931 metres. Wireline logs indicated a gross hydrocarbon interval of 49 metres and a net hydrocarbon interval of 29 metres. No clear oil/water contact was seen on the logs and therefore the thickness of the oil interval may be greater than currently interpreted. A formation pressure sampler confirmed the hydrocarbon gradient that was encountered in the Massive formation in the Khurbet East No.1 well.

Well testing operations were conducted over the upper 10 metres, approximately, of the Massive formation. During a 16 hour flow period, oil flowed to surface under natural flow through a 32/64 inch choke at an average rate of 710 barrels per day, increasing to a final rate of 820 barrels per day. The oil was of approximately 26 degrees API gravity with a gas-to-oil ratio of approximately 15 standard cubic feet per barrel. The results of the testing operation indicate very good formation permeability and it is believed that this production rate would be materially enhanced with artificial lift methods.

The Tertiary Chilou formation was encountered at 1,317 metres. The results of a formation pressure sampler indicated this formation to be mainly water bearing at this location and it is therefore considered unlikely to contain hydrocarbon in sufficient quantities to support commercial development.

The Khurbet East No.2 well has been suspended, retaining the options of further testing or future production from this location, and the rig has been de-mobilised from the location.

Further appraisal of the Khurbet East discovery will now continue with the acquisition of a 3D seismic survey over the structure, planned to commence in September 2007. The results of this survey will be used to plan further well locations.

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

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