Emerald Energy Plc

FOR IMMEDIATE RELEASE

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

16 July 2007

Operations Review and Update

Emerald Energy Plc (“Emerald” or the “Company”) is pleased to provide the following operations update for the period ending 30 June 2007:

Syria, Block 26 – Exploration and Appraisal

The Tigris No.1 exploration well was drilled to a depth of 4,500 metres in February. Hydrocarbon shows were encountered while drilling and wireline logs suggested that hydrocarbons may be present, but formation pressure sampling was unable to confirm the presence or mobility of any such hydrocarbons. Emerald concluded, on the basis of all the data available, that it is unlikely that commercial hydrocarbons can be produced from this well and elected not to participate in the running of a liner in the well.

The Khurbet East No.1 exploration well was drilled to a total depth of 3,800 metres in May and encountered multiple hydrocarbon bearing formations. The Khurbet East structure is located approximately 12 kilometres southwest of the Souedieh Oil Field and 12 kilometres south of the Roumelan Oil Field.

The top of the Tertiary aged Chilou formation was identified at 1,319 metres and wireline logs indicated a potential net hydrocarbon interval of approximately 26.4 metres. A wireline formation pressure sampler could not be run to confirm the presence of hydrocarbon due to the large diameter hole size at this depth.

The top of the Cretaceous aged Massive formation was identified at 1,917 metres on the wireline logs which also indicated a net hydrocarbon interval of approximately 22.5 metres. The presence of hydrocarbon was confirmed by a wireline formation sampler which recovered oil samples of approximately 24 degree API gravity to surface.

The Triassic aged Butmah formation top was encountered at 2,850 metres and the Operator has estimated a net hydrocarbon interval of approximately 16 metres. A wireline formation sampler which recovered a gas sample to surface confirmed the presence of hydrocarbon.

The top of the Triassic aged Kurrachine Dolomite formation was identified at 3,098 metres and hydrocarbon shows were observed across an interval of approximately 60 metres. The presence of hydrocarbon in the Kurrachine Dolomite formation was confirmed by a well test. The net hydrocarbon interval was uncertain as well-bore conditions resulted in inconclusive wireline logs over this section.

Well testing operations were conducted on a 102 metre open-hole section of the Kurrachine Dolomite formation. Oil of approximately 35 degrees API gravity was produced to surface under natural flowing conditions through a 32/64 inch choke at a rate of up to 478 barrels per day, with a gas-to-oil ratio averaging approximately 2,000 standard cubic feet per barrel. No further well testing operations were conducted on this well. The well has been suspended retaining the option for further testing or production operations in the Kurrachine Dolomite in the future.

The Khurbet East No.2 appraisal well, located approximately 1.2 kilometres to the northeast of the Khurbet East No.1 discovery well, was spud on 14th June with the objective of appraising the Tertiary Chilou and Cretaceous Massive formations encountered in the Khurbet East No.1 well. The total drilling depth of the Khurbet East No.2 well is expected to be approximately 2,100 metres and take approximately 45 days to drill and evaluate. Results from the Khurbet East No.2 well are expected in August.

Colombia – Exploration and Development

Drilling of the Aureliano No. 1 exploration well on the Fortuna block was completed in late January, with the target La Luna limestone formations being encountered as forecast. An extended phase of production testing was conducted, including the use of a workover rig for perforation and acid stimulation. Following these operations, a flow rate of 10 bopd of 25 degree API gravity oil was established. The recovery of oil confirmed the presence of hydrocarbons but the low flow rate indicates that communication with a fracture network was not established.

The Totumal No.4 well, in the Fortuna block, was re-entered in July with the aim of determining the potential to recommence production from the well. The Totumal field produced 0.8 million barrels from the La Luna formations prior to abandonment in 1993. The well bore was cleaned out and a production tubing string and mechanical pump were installed. Production commenced in July at an initial rate of approximately 40 bopd of 25 API gravity oil. The re-entry programme for a second abandoned well on the Totumal field is being evaluated.

A detailed study of the data acquired during the drilling and testing of the Aureliano No.1 well and the Totumal No.4 well re-entry is being undertaken to determine the future potential of the Totumal and Aureliano accumulations.

A fracture stimulation was conducted on the Silfide No.1 well, also in the Fortuna block, in May. The well had been shut-in since the middle of 2006 due to a mechanical failure of the down hole pump. The well commenced production after the workover with an initial rate of 35 bopd, a modest increase over the pre-workover rate.

The Campo Rico No.4 development well, drilled and completed in May, commenced production in June 2007 at an initial rate of approximately 360 bopd. The well is located in the north of the Campo Rico field to recover reserves from the Mirador formation that would not be recovered by the existing producing wells. Construction of the production pipeline between the surface location of the well and the Campo Rico field production facilities has been completed. Under the commerciality status granted by Ecopetrol for the Campo Rico field development, the drilling and pipeline costs are shared with Ecopetrol on a 50/50 basis, as is future production from the well.

The Centauro Sur field development was awarded commerciality status by Ecopetrol in May 2007 and joint operations commenced. The reimbursable costs on this field have been recovered and future costs and production for this field are shared with Ecopetrol on a 50/50 basis

The Company was awarded two new exploration and production contracts (Helen and Jacaranda) by the National Hydrocarbon Agency of Colombia (“ANH”). These are in addition to the two exploration and production contracts (Maranta and Ombu) awarded to the Company by the ANH in the second half of 2006. Exploration activities are now focused on these four new areas as prospectivity has been identified on each and the ANH contracts include attractive fiscal terms.

The Ombu Contract, in which Emerald has a 100% working interest, covers an area of 300 sq. km and is located in the Caguan Basin, to the south-west of the Llanos Basin. A single large prospect has been identified in the block. A well drilled on this prospect in 1975 encountered hydrocarbons at a number of levels in a 110 feet section and tested oil in the range of 11 to 14 degrees API gravity. The future programme will address the lateral extent and productivity of the accumulation. The initial phase of the exploration period expires in November 2007 when Emerald has the right to elect to enter the second phase, with a duration of 1 year and a minimum work programme including the drilling of 1 well.

The Maranta block, in which Emerald has a 100% working interest, covers an area of 365 sq. km and is located north-east of the main producing oil fields in the Putumayo Basin in south-west Colombia and adjacent to blocks in which Gran Tierra Energy Inc. and Solana Resources Limited recently announced two discoveries. A number of material prospects and leads have been identified and will be matured with the acquisition of new 2D seismic. The initial phase of the exploration period expires in March 2008 when Emerald has the right to elect to enter the second phase, with a duration of 1 year and a minimum work programme including the drilling of 1 well.

The Helen block, in which Emerald has a 15% working interest, is also located in the Putumayo Basin in south-west Colombia and covers an area of 213 sq. km. Emerald’s working interest is fully carried through the initial phase of exploration following an agreement with Vetra Energy Group LLC (“Vetra”) under which Vetra pays 100% of the cost of the initial phase of exploration and is assigned an 85% working interest in the block. The initial phase of the exploration period currently expires in October 2007 but may be extended to April 2008. At the end of this initial phase Emerald has the right to elect to enter the second phase, with a duration of 1 year and a minimum work programme including the drilling of 1 well.

The Jacaranda Contract, in which Emerald has a 100% working interest, covers an area of 235 sq. km and is located in foreland of the Llanos Basin, in Colombia, 130 km to the southwest of the Company’s Campo Rico operations. A single large prospect has been identified and will be matured with the acquisition of new 2D seismic. The initial phase of the exploration expires in March 2008 when Emerald has the right to elect to enter the second phase, with a duration of 1 year and a minimum work programme including the drilling of 1 well.

The Company estimates the mean unrisked prospective resources of the prospects and leads identified in these four blocks to be in excess of 40 million barrels, net to the Company. The Company intends to progress exploration activities in these areas with the objective of developing a drilling programme for 2008 to test this potential.

The Company has entered into an agreement with Compañia Geofisica Latinoamericana (CGL) to acquire new 2D seismic data on the Maranta, Jacaranda, and Ombu blocks. The acquisition programme is planned to commence in the third quarter and will satisfy the 2D seismic commitment of the initial phase of exploration in each block.

Colombia - Production

Daily gross production for the second quarter of 2007 averaged 3,808 bopd, compared to 3,508 bopd achieved in the first quarter of 2007.

During June 2007, the daily gross production averaged 3,859 bopd, comprising approximately 950 bopd from the Gigante field, 1,700 bopd from the Campo Rico field, 700 bopd from the Vigia field, 500 bopd from the Centauro Sur field, and the remainder from the Fortuna block.

In Colombia, the Company aims to maintain gross production levels in the existing fields through the use of workovers and, where appropriate, well sidetracks, and to add to production levels through new discoveries, predominantly from the new blocks currently being explored.

In July 2007, Ecopetrol’s share of production from the joint operations area in the Gigante field was increased from 25% to 50% as part of the cost reimbursement arrangements under the Matambo Association Contract. Ecopetrol will pay 50% of future operating and capital costs in the joint operations area.

General

On 13th July the Company announced the closing of the agreement with Credit Suisse Securities (Europe) Limited (“Credit Suisse”) announced on 4th July 2007. For a total consideration of US$30 million, the Company has issued and Credit Suisse has subscribed for Series A and Series B senior unsecured convertible bonds which were issued, and may be redeemed at par value.

Series A bonds, due January 2012, issued at an aggregate principal amount of US$15 million, will pay a coupon of 5.875 per cent and 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 the announcement.

Series B bonds, due January 2013, issued at an aggregate principal amount of US$15 million, will pay a coupon of 4.875 per cent and 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 the announcement.

These funds will be used as general working capital.

Angus MacAskill, Emerald’s Chief Executive Officer, said:

“We are very pleased to have increased the production level from the existing fields in Colombia, to have had success with exploration in Syria, and to have put in place a finance package enabling us to progress opportunities to materially enhance future production.”

Company web site may be found at www.emeraldenergy.com

Emerald holds a 50% interest in Block 26 through its fully owned subsidiary SNG Overseas Ltd.

Enquiries: Helen Manning 020 7925 2440