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Emerald Provides Khurbet East Operations Update, Block 26, Syria

Source: www.gulfoilandgas.com 9/24/2007, Location: Middle East

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Emerald Energy Plc provided the following update on activities on the Khurbet East discovery in Block 26, Syria. A further appraisal well, Khurbet East No.3, is planned to commence drilling in November 2007. This well will further appraise the Cretaceous Massive reservoir encountered by the Khurbet East No.1 and Khurbet East No.2 wells. Khurbet East No.3 is expected to have a total drilling depth of 2,150 metres and take approximately 45 days to drill and evaluate. The well is planned to be drilled using the MB3 drilling rig owned by MB Drilling Overseas Limited under the existing rig sharing contract in place with another operator in Syria.

A 3D seismic survey is scheduled to commence in October 2007. The survey will acquire 150 sq.km of seismic data across the Khurbet East structure and an additional 240 sq.km across exploration leads identified in the Khurbet East play to the south of the Khurbet East field. The 3D survey across the Khurbet East field will be used to plan well locations for field development. The seismic acquisition is planned to be completed in January 2008 with processing and interpretation completed in the first quarter of 2008.

Development planning activities have started for the commercial development of the Khurbet East field with initial production targeted for the second half of 2008. Rights to utilize the local pipelines and other infrastructure are granted as part of the Contract for the Exploration, Development and Production of Petroleum for Block 26.

A technical and commercial evaluation of the field, including initial development plans, is expected to be submitted to the Syrian Government and the Syrian Petroleum Company in the fourth quarter of 2007 for consideration and approval.

An evaluation of the reserves in the Khurbet East field is being conducted by an independent engineering firm, RPS Group plc, based in London. This evaluation is expected to be completed by the end of 2007.

The operator, Gulfsands Petroleum Syria Limited, has signed an amendment to an existing rig contract with Crosco, Integrated Drilling and Well Services, Company Ltd for the drilling of two wells by May 2008 and agreed in principle the terms of a further rig agreement in support of the Khurbet East field development.

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