Emerald Energy Plc - 27 May 2005

AGM Statement

The Company provided the following update on operations at its Annual General Meeting held today.

“We anticipate that the remainder of 2005 will see more positive news

• The workover of wells Campo Rico #2 and #3 to reduce the proportion of water produced will be undertaken in June. Both wells are expected to be operational in July adding some 2,000 barrels of oil per day to production.
• The final assembly of production facilities at Vigia is underway and production from the discovery well Vigia #1 should also commence in July. After the initial testing period this well is expected to produce at 1,000 barrels of oil per day.
• Well Vigia #2 is being drilled and is less than 1,000ft from reaching its planned total depth. The drilling should be completed and the well logged during June with first production anticipated in August.
• Sulfide #1, the first exploration well on the Fortuna block will be drilled and evaluated before the end of 2005.
• Drilling of the exploration well on the El Algarrobo block will commence by year end.
• Applications will be made to convert some of the acreage under the TEAs into Exploration and Production Contracts.

In November 2004 we announced that Emerald had entered into an agreement to acquire a 25% interest in the Russian Joint Stock Company Krasnoyarskgasprom, a company with licences to explore and develop 3 oil and gas fields in East Siberia. We remain committed to this transaction when the proposed capital re-structuring of Krasnoyarskgasprom by OAO Gasprom is completed.

I would like to thank all the members of the Emerald team in Colombia and London for their hard work and determination in achieving the results we see today.”

Enquiries: Alastair Beardsall 020 7925 244

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