COLOMBIA: EXPLORATION & NEW VENTURES

Emerald’s strategy for its exploration programme in Colombia is to focus on material prospectivity in contracts with attractive fiscal terms. Under this strategy, the Company has added new contracts to the portfolio, is currently conducting seismic acquisition in these contract areas, and is planning drilling activity in 2008. This strategy will increase the potential to add further production to the Group’s portfolio in the medium term, building on the success already achieved.

Emerald completed the evaluation of the Cachama and Las Brisas areas under the terms of TEAs with the ANH. The TEAs have now expired. The Jacaranda E&P contract was awarded following the Cachama TEA.