Emerald Energy Makes Headway at Khurbet East

Emerald Energy has provided the following update on operations in Block 26, Syria.

Khurbet East Field Oil Production

Cumulative gross oil production from the Khurbet East field has recently reached 4.5 million barrels, with minimal water production and little pressure depletion observed to date. Current daily gross oil production is approximately 16,400 barrels per day.

Khurbet East No.7 Flow Testing

The Khurbet East No.7 well, drilled in January 2009, was re-entered in September 2009 to evaluate the flow potential of two intervals which, based on wire-line logging information, were interpreted to be of poor reservoir quality but may potentially contain oil. These intervals had not previously been flow tested.

Using a work-over rig, the intervals 1,979 meters to 2,004 meters (1,565 metres to 1,590 meters true vertical depth subsea ("TVDSS")) and 2,011 meters to 2,036 meters (1,597 metres to 1,621 meters TVDSS) were flow tested, with each of the intervals producing formation water only.

The well has been completed for future water disposal, a function that was envisaged for this well at the time it was drilled.

Khurbet East No.2 Cementing

A cementing operation was successfully conducted on the Khurbet East No.2 well to isolate the small amounts of water production that had been experienced in this well. Following this operation, the well has recommenced production at a substantially higher oil rate of approximately 1,700 barrels per day and with minimal water production.

Yousefieh No.3 Appraisal Well

Drilling operations have commenced on the Yousefieh No.3 appraisal well, located approximately 500 meters to the southeast of the Yousefieh No.1 discovery well. The Yousefieh No.3 well is planned to take approximately 45 days to drill and evaluate.

Emerald's Chief Executive Officer, Angus MacAskill, said, "We are very pleased with the progress in the Khurbet East field, with the continued excellent production performance, further advances in field delineation, and the successful development and implementation of well intervention capabilities. We also look forward to the results of the Yousefieh No.3 appraisal well."