Emerald Energy Plc - 24 May 2006
Operations Update – Colombia
Emerald Energy Plc (“Emerald” or the “Company”) is pleased to provide the following update:
Exploration
The Las Acacias No.1 exploration well has been drilled to a total depth of 10,930 ft. The Las Acacias prospect is located to the south of the Vigia field. Wireline logs identified a potential hydrocarbon zone, casing has been run and cemented and the well is being prepared for production testing. Saxon Rig 223 will then be moved to drill Las Acacias No.2 and drilling should commence early June 2006.
Centauro Sur No.1 exploration well continues to produce at approximately 250 bopd and a second well on the Centauro Sur field is being planned for later in 2006.
Production
Daily gross production for 1st quarter 2006 averaged 4,400 bopd. During April and May production continued to be impaired by the failures of rented surface hydraulic pumps at the Campo Rico and Vigia fields and, in addition, the failure of downhole pumps in Vigia No.1 and Campo Rico No.1 wells. These wells during 1st quarter 2006 produced at an average rate of 954 bopd and 760 bopd respectively and when removed from production had a significant impact. Average production for May to date is 3,400 bopd.
The downhole pump in Campo Rico No.1 has been replaced and the well returned to production. Vigia No.1 is being worked over and an electric submersible pump installed to replace the downhole jet pump; it is expected that the well will be returned to production by end of May. New surface hydraulic pumps have been purchased for the Campo Rico and Vigia fields as planned and will be installed during June 2006.
The Company is preparing to replace hydraulic jet pumps at Campo Rico No.1, 2 and 3 wells with electric submersible pumps to improve the reliability of production levels.
Alastair Beardsall, Emerald’s Chairman, said:
“We have started a programme to replace our production equipment, both at surface and downhole, to reverse the recent decline in production and to improve the reliability of our operations. This programme will take several weeks to complete and will result in a better operation of Emerald’s assets.”
Enquiries: Helen Manning 020 7925 2440
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