Emerald Energy Plc - 27 August 2004

Not for release, distribution or publication in whole or in part into the United States, Canada, Japan, South Africa, the Republic of Ireland, New Zealand or Australia

Result of Placing and Open Offer

On 29 July 2004, Emerald Energy Plc (“Emerald Energy”) announced details of a Placing of 4,591,667 New Ordinary Shares and an Open Offer of up to 5,969,557 New Ordinary Shares at £1.20 per share.

The Open Offer has now closed in accordance with its terms. The Board of Emerald Energy announces that valid acceptances under the Open Offer have been received from Qualifying Shareholders in respect of 3,149,427 Open Offer Entitlements. This represents approximately 52.76 per cent. of the Open Offer Entitlements offered pursuant to the Open Offer.

The Open Offer, as described in the prospectus dated 30 July 2004, was not underwritten and therefore the Open Offer Entitlements not taken up under the Open Offer will not be issued.

The Placing and the Open Offer remain conditional upon the passing of the Resolutions at the EGM to be held at 11.00am on 31 August 2004 and upon Admission.

It is expected that Admission will occur no later than 8.00 a.m. on 1 September 2004.

Press Enquiries:

Alastair Beardsall, Chairman and Chief ExecutiveEdward Grace, Finance DirectorEmerald Energy Plc Tel: 020 7925 2440

Chris Hardie / Mark DickensonTeather & Greenwood Limited Tel: 020 7426 9000

Teather & Greenwood Limited acted as Sponsor and Stockbroker in relation to the Placing and Open Offer.

Teather & Greenwood Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting solely for Emerald Energy in relation to the Placing and the Open Offer and no one else and will not be responsible to anyone other than Emerald Energy for providing the protections afforded to clients of Teather & Greenwood Limited nor for providing advice in relation to the Placing and the Open Offer.

None of the New Ordinary Shares has been or will be registered under the United States Securities Act of 1933, as amended, nor under the applicable securities laws of any state of the United States, any province or territory of Canada, Japan, South Africa, the Republic of Ireland, New Zealand or Australia. Accordingly, the New Ordinary Shares may not be offered, sold or delivered within the United States, Canada, Japan, South Africa, the Republic of Ireland, New Zealand or Australia.

This press announcement has been issued by Emerald Energy and is the sole responsibility of Emerald Energy.

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