It had previously been announced that Silfide No.1 was to be drilled by Saxon's Rig No. 222. However the increased activity in the worldwide rig market has driven rig day rates to a level where the operational advantages of using an existing contractor's rig did not compensate for the additional costs of using an over sized rig to drill to the relatively shallow depths for the proposed well. Under the contract with Ismocol the rig day rate and mobilization charges are substantially less that those proposed by Saxon.
The Company is currently producing in excess of 4,300 barrels of oil per day from 5 of its 7 production wells; the remaining 2 wells will be put on production as the construction of enlarged surface production facilites is completed.
Alastair Beardsall, Emerald's Chairman, said: 'Silfide No.1 is the 1st exploration well to be drilled into the Lisama sands on the Fortuna block and will fulfill this years drilling commitment under the Fortuna Association Contract.'
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