Higher Output Helps Emerald H1 Profits Jump 37.4%
London-based hydrocarbons E&P company Emerald Energy, which has operations in Colombia, reported a profit of US$2.15mn in the first half of this year, up 37.4% from 1H05.
In the period, revenue from oil sales grew 71.9% to US$21.2mn and adjusted Ebitda closed at US$13.2mn compared to US$4.83mn in the year-ago period, the company said in a statement highlighting 1H06 interim results.
Emerald attributed the results to the "the increased level of production and the favorable economic environment."
The Centauro Sur 1 well, drilled in April 2006 on a prospect south of the Campo Rico field, discovered oil in the Mirador formation. A second well on the Centauro Sur field was drilled in July 2006. Both wells are producing.
The Las Acacias 1 well, drilled in May 2006 on a prospect south of the Vigia field, failed to recover hydrocarbons to surface. The well is being tested as a disposal well for water produced from the Vigia field.
Vigia 4 was drilled in August 2006 as a stepout appraisal well to test a westward extension to the Vigia field and was evaluated as non-commercial. The well has been plugged and abandoned.
The company is preparing a program to acquire 40 sq km of 3D seismic to cover the Gigante structure in the Matambo block. The program will help determine the location for drilling the Gigante 2 well.
The Silfide 1 well on the Fortuna block produced for several weeks at an average rate of 25 barrels a day (b/d) of oil. The company is analyzing geological, reservoir and production data to determine if the well would respond to a hydraulic fracture treatment to enhance the output rate.
The Agueda 1 exploration well, in which Emerald has a 50% working interest, was drilled in March 2006 on a prospect north of the producing Rancho Hermoso field in the Llanos basin. The well, in the El Algarrobo block, was evaluated as non-commercial and plugged and abandoned.
This month Emerald signed the Maranta block E&P contract with Colombia's hydrocarbons regulator ANH. The block is northeast of the Putumayo basin producing fields and covers some 365 sq km. The initial exploration phase will take 18 months.
The company also completed the evaluation of the Cachama and Las Brisas areas under the terms of technical evaluation agreements with ANH. The agreements have expired and Emerald is in talks with ANH for exploration rights over certain areas.
The drilling contract for Saxon's Rig 223 has been extended to January 2008 to ensure Emerald has drilling capacity available for its next drilling campaign.
Rig 223 is on loan to another operator to drill in the middle Magdalena valley basin, where Emerald's Fortuna block is located.
Emerald's next drilling campaign will include exploration and development wells and is expected to start with the drilling of the Aureliano 1 exploration well in November.
Daily gross production for the first six months of 2006 averaged 3,677b/d compared to 2,542b/d and 4,053b/d in the first and the second halves of last year respectively.
Emerald has 10 production wells with nine in production lifting about 4,200b/d in total.
Campo Rico has three wells in production at an aggregate rate of about 1,560b/d; Vigia has three wells at roughly 640b/d; and Centauro Sur has two wells at some 1,100b/d.
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