Emerald Energy Plc provides the following update on operations in Block 26, Syria.

The Yousefieh No.1 exploration well, located approximately 3 kilometres from the early production facilities in the Khurbet East field, has encountered 63 metres of net oil pay in the target Cretaceous aged formations and flowed oil to surface, under natural flow, at approximately 900 barrels of oil per day.

The Yousefieh No.1 well was drilled to a total depth of 2,139 metres and based on preliminary wire-line log and core evaluation, encountered at a depth of around 1,940 metres an oil column of approximately 64 metres in the target Cretaceous aged formations, with approximately 63 metres of net oil pay having an average porosity of 18.6%.

A flow test was conducted over the top 19 metre interval, flowing oil of approximately 23 degrees API gravity to surface, under natural flow and through a 48/64 inch choke, at an average rate of approximately 900 barrels per day over a 3 hour period with no water produced. While preparing for the natural flow test, the well produced, with the assistance of gas lift, at an average rate of approximately 1,450 barrels per day through a 95/64 inch choke over a 3 hour period. The preliminary results of the test indicate very good reservoir permeability.

Coring operations were conducted across the complete reservoir interval with very good recovery. This information, together with that obtained from the logging and testing operations will be used to evaluate the discovery and prepare an appraisal programme.

The Yousefieh No.1 well was designed to evaluate a new exploration play identified on the 3D seismic data acquired in 2007 over and around the Khurbet East field. Following this early success on the play, the joint venture is planning to acquire additional 3D seismic data to assist in the identification of further prospects and leads in this play in the areas surrounding the Khurbet East field and Yousefieh discovery.

The Yousefieh No.1 well will be suspended and the rig moved to drill a delineation well at the north end of the Khurbet East field with the aim of establishing the oil water contact and also with the potential to be used later as a water disposal well.

Following the evaluation of the data acquired on the Yousefieh No.1 well, a smaller workover rig may be moved to this well to conduct more extensive well testing.

The Khurbet East field continues to produce at an average daily oil rate of approximately 11,500 barrels per day from 5 wells (2 vertical and 3 horizontal producers) with only trace water production and cumulative oil production from the field has now exceeded one million barrels.

Pressure monitoring operations conducted in producer wells in October indicate that there has been only minimal reservoir pressure reduction in the Khurbet East field. This information, along with the production history and data acquired in the field to date will be included in the field reserves updated planned to be completed in the first quarter of 2009.

Emerald’s Chief Executive Officer, Angus MacAskill, said, “We are delighted with the results of the Yousefieh No.1 well, the first on this exciting new exploration play and look forward to the results from both the appraisal of this discovery and from the acquisition of further 3D seismic data in the area. We are also very pleased with the excellent performance of the Khurbet East field and the achievement of the milestone of the first million barrels from this field.”

Tags: Emerald Energy Plc