Emerald Energy Awarded Fortuna Block in Ecuador

Emerald Energy has entered into an Association Contract for the Fortuna Block. Ecopetrol, the Colombian state oil company holds 30% interest, Emerald 63% and Geoadinpro 7%.

The Fortuna contract area is in the Middle Magdalena Basin of Colombia and covers 21,907 hectares. Emerald's initial work has identified a shallow (+/- 1,500m) Tertiary exploration target in the Lisama formation with a potential 18 mmbbls of recoverable oil. There is also a deeper (+/- 2,500m) Cretaceous accumulation of oil in the La Luna formation that has produced 0.8 mmbbl of oil and 0.3 bcf of gas to date. The La Luna is estimated to contain 19 mmbbls of recoverable oil.

The first years minimum work commitment is to reprocess 100 km of existing 2D seismic and acquire 50 km of new seismic which will cost $0.5m. If Emerald elects to enter the second year, the obligation will be to either acquire an additional 45 km of seismic or drill an exploration well to the Lisama at a cost of $0.5-$0.8m.

Alastair Beardsall, Emerald Energy's chairman said, "we are very pleased to have entered into this Association Contract. The Fortuna Block offers Emerald a low cost exploration opportunity with the advantage of discovered hydrocarbons in the deeper horizon."