Emerald Energy Reports on Gigante No. 2 Development Well in Colombia

Emerald Energy Plc

Emerald Energy has provided the following update on operations in the Gigante No.2 well in the Matambo Association Contract in Colombia. Emerald is the Operator and Ecopetrol S.A, the Colombian national oil company, is a partner in these operations.

Drilling of the Gigante No.2 well has been completed and a production liner is being run in preparation for testing operations.

Gigante No.2 has been planned primarily as a development well in the currently producing Tetuan reservoir and also to evaluate the exploration potential of the deeper Caballos formation.

The well has been drilled to a total depth of 15,630 feet, encountering hydrocarbon shows in both the Tetuan and Caballos formations. The tops of the Tetuan and Caballos formations were encountered approximately 378 feet and 338 feet structurally higher, respectively, than in the Gigante No.1A well which is significantly better than the pre-drill estimate of 260 feet.

A preliminary analysis of the drilling and wireline logging data acquired to date indicates a potentially oil bearing sandstone interval of approximately 32 feet (gross and net) in the Tetuan formation with an average porosity of approximately 10%, similar to the porosity in the Gigante No.1A production well.

In the Caballos formation, a preliminary analysis of the data indicates a 163 feet gross (107 feet net) sandstone interval with an average porosity of approximately 9%. The analysis of wireIine logging data acquired to date has not been able to confirm if the Caballos formation is oil bearing.

Due to difficult open hole conditions in the well, the Operator has decided to curtail the wireline logging operations and to run a production liner across the open hole section of the well before proceeding with flow testing of both the Tetuan and Caballos formations.

Following the liner running operation, the Operator plans to demobilise the drilling rig from the location and mobilise a smaller, lower cost rig for the testing operations. This smaller rig is expected to be operational within two weeks and the subsequent flow testing operations are expected to take up to one month to conduct.

Emerald's Chief Executive Officer, Angus MacAskill, said, "We are very pleased with the progress in the Gigante No.2 well, having successfully drilled this deep and technically complex well, and having encountered the target formations significantly higher on the structure than in the existing Gigante No.1A production well. We now look forward with our partner, Ecopetrol S.A., to the results of the testing operations and future production from this well."