Emerald Energy Plc - 10 January 2006

OPERATIONS UPDATE - SYRIA

Emerald Energy Plc (the “Company”Operations Update – Block 26, Syria

Emerald Energy Plc (“Emerald” or the “Company”) is pleased to provide the following update based on information released by Gulfsands Petroleum PLC (“Gulfsands”), the operator, for Block 26 (Syria) in which Emerald and Gulfsands each hold a 50% working interest:

Gulfsands has completed the acquisition of approximately 1,155 line kilometres of 2D seismic data within Block 26. This seismic programme exceeds the 500 line kilometre minimum work obligation for the Initial Exploration Period. The programme was designed to provide additional seismic data coverage over several previously identified leads as well as to identify new leads in selected prospective areas. In the northern portion of the Block, these leads include Cretaceous reservoir targets offsetting the large Souedieh, Rumailan, Hamzeh and Karatchok fields as well as the deeper and highly prospective Paleozoic reservoir targets. Data acquired in the southwest portion of Block 26 will provide additional seismic coverage over several previously identified Paleozoic reservoir leads. The acquired seismic data may also help to identify new exploration leads and prospects.

Gulfsands expects that the processing of the seismic data will be completed in the first quarter of 2006 and interpretation will commence immediately thereafter. The data will be used by Gulfsands and Emerald to jointly select and rank exploration drilling locations.

A copy of the presentation ‘Syria Block 26 2D Seismic Program’ prepared by Gulfsands can be found on our website at www.emeraldenergy.com/investor-presentations.htm.

Block 26 covers in excess of 11,000 square kilometres (2.8 million acres) and is located in the prolific El Hasekah region of Northern Syria. There are a number of large producing oil fields contained within Block 26, including Souedieh, Rumailan, Hamzeh and Karatchok. Production is primarily from Cretaceous age reservoirs, and the estimated ultimate recovery from these fields is in excess of 3 billion barrels of oil. Although the current producing intervals within these producing fields are not included within the Block 26 PSC, Gulfsands and Emerald, each with 50% working interest, do have the rights to reservoirs beneath the existing fields and to all depths outside of existing fields within Block 26. Based on existing seismic data and well control, 31 prospects and leads have been identified within Block 26 and Gulfsands and Emerald plan to drill a minimum of 4 wells within Block 26 by August 2007.

Alastair Beardsall, Emerald’s Chairman, said:

“Real progress has been made by Gulfsands, our partner, in the two months since we acquired our 50% interest in this project. We now look forward to the drilling of at least 2 exploration wells in 2006.”

Enquiries: Helen Manning 020 7925 2440

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