Emerald Energy Plc

FOR IMMEDIATE RELEASE

Emerald Energy Plc (“Emerald” or “the Company”)

4 July 2007

ISSUE OF CONVERTIBLE BONDS

Emerald Energy Plc (the “Company”) has agreed with Credit Suisse Securities (Europe) Limited (“Credit Suisse”) that, subject to certain conditions, including completion of legal documentation, for a total consideration of US$30 million, the Company will issue and Credit Suisse will subscribe for Series A and Series B senior unsecured convertible bonds.

Series A bonds, due January 2012, will be issued at an aggregate principal amount of US$15 million, will pay a coupon of 5.875 per cent and will be convertible into ordinary shares of the Company at 290 pence per share, representing a 39 per cent premium to the volume weighted average price of the Company’s ordinary shares in the twenty trading days preceding the date of this announcement.

Series B bonds, due January 2013, will be issued at an aggregate principal amount of US$15 million, will pay a coupon of 4.875 per cent and will be convertible into ordinary shares of the Company at 270 pence per share, representing a 29 per cent premium to the volume weighted average price of the Company’s ordinary shares in the twenty trading days preceding the date of this announcement.

In the twenty trading days preceding the date of this announcement, the volume weighted average price of the Company’s ordinary shares was 209 pence.

The bonds will be issued and redeemed at par value. The bonds will be redeemable at the Company’s option, subject to certain conditions, from July 2010.

This announcement has been approved by Credit Suisse Securities (Europe) Limited.

Enquiries:

Emerald Energy Plc – Helen Manning 020 7925 2440

Credit Suisse Securities (Europe) Limited – Rebecca O’Neill 020 7883 7373