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

Khurbet East No.4 Well:

Drilling of the Khurbet East No.4 well in the Khurbet East field has commenced. It is the first well to be drilled in the development phase of the field following the recent approval of commercial development of the field.

Khurbet East No.4 is expected to have a total drilling depth of approximately 1,950 metres and take approximately 30 days to drill and evaluate. It is planned as a production well close to the crest of the structure in the Cretaceous Massive reservoir, located approximately 150 metres away from the Khurbet East No.1 well. The Khurbet East No.1 well, drilled to a total depth of 3,800 metres, may be used to further appraise the deeper Triassic Kurrachine Dolomite and Butmah reservoirs and is therefore not currently included in the development plan for the shallower Massive reservoir.

Development Area Approval:

Following the granting of approval for the commercial development for the Khurbet East field, announced on 5th February 2008, the Syrian Ministry of Petroleum and Mineral Resources has granted the application for a Development Area of approximately 100 square kilometres covering the Khurbet East field. The Development Area will be operated, under the terms of the Contract for the Exploration and Development and Production for Block 26, by a joint operating company to be set up with the Syrian Petroleum Company.

3D Seismic:

The 240 km2 3D seismic acquisition programme to the south of the Khurbet East field, has been completed and is being processed with interpretation to follow. This data was acquired over an area where several leads had been identified and will be used to progress the exploration programme for Block 26.

Emerald's Chief Executive Officer, Angus MacAskill, said, "The spudding of this production well and the granting of the Development Area within only 2 weeks of receiving approval for the commercial development of the field marks continued progress towards first production from the field, targeted to take place later this year. The Khurbet East No.4 well will build the initial production capability of the field from the Massive reservoir, adding to that of the Khurbet East No.2 and Khurbet East No.3 wells."

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

Tags: Emerald Energy Plc