Gulfsands Petroleum Syria (“Gulfsands”), the Operator of Block 26 has notified Syrian Petroleum Company that Gulfsands and Emerald have elected to enter the first extension of the exploration period of the Block 26 Production Sharing Contract which shall commence following the expiry of the initial exploration period on 23rd August 2007.

The first extension has a duration of three years and a minimum work obligation of 250 sq. km of 3D seismic and two exploration wells. The terms of the first extension include the relinquishment of an area equivalent to 25% of the area of Block 26, for which the partnership has selected an area considered to be of limited exploration potential.

Emeralds’ Chief Executive Officer, Angus MacAskill, said, “We are very pleased to be entering this next phase in Block 26 and look forward to progressing both the Khurbet East discovery and the remaining exploration potential within the block.”

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