Emerald Wins Helen Contract in Colombia

Emerald Energy Plc said that it has been awarded a new exploration & production contract in Colombia and has entered into an agreement with a co-venturer to jointly explore the contract area.

The Helen Contract, awarded by the National Hydrocarbon Agency of Colombia ("ANH") is located in the Putumayo Basin in southwest Colombia and covers an area of 213 sq. km. The initial phase of the exploration period is up to 16 months and the minimum work program comprises the acquisition of 30 km of new 2D seismic data and the re-processing of 120 km of existing 2D seismic data. If the second phase is entered, the minimum work program includes the drilling of 1 well to an estimated depth of 10,000 ft.

Emerald has entered into an agreement with Vetra Energy Group LLC ("Vetra"), subject to approval by the ANH, under which Vetra will undertake 100% of the cost of the initial phase of exploration and will be assigned an 85% interest in, and operatorship of the Contract. Emerald will retain a 15% interest in the Contract and will be fully carried through the initial phase of exploration.

Emeralds' Chief Executive Officer, Angus MacAskill, said:

"We are very pleased with the award of our third ANH E&P Contract in Colombia. The new contract builds our position in the Putumayo Basin and the deal with Vetra minimizes our capital exposure while retaining a material interest. We look forward to working with our new partners in this area."