Emerald Energy Plc

FOR IMMEDIATE RELEASE

Emerald Energy Plc

26 January 2007

Helen Exploration and Production Contract Award in Colombia

Emerald Energy Plc (“Emerald” or the “Company”) is pleased to announce that it has been awarded a new exploration & production contract (the “Contract”) in Colombia and has entered into an agreement with a co-venturer to jointly explore the contract area.

The Helen Contract, awarded by the National Hydrocarbon Agency of Colombia (“ANH”) is located in the Putumayo Basin in south-west Colombia and covers an area of 213 sq. km. The initial phase of the exploration period is up to 16 months and the minimum work programme comprises the acquisition of 30 km of new 2D seismic data and the re-processing of 120 km of existing 2D seismic data. If the second phase is entered, the minimum work programme includes the drilling of 1 well to an estimated depth of 10,000 ft.

Emerald has entered into an agreement with Vetra Energy Group LLC (“Vetra”), subject to approval by the ANH, under which Vetra will undertake 100% of the cost of the initial phase of exploration and will be assigned an 85% interest in, and operatorship of the Contract. Emerald will retain a 15% interest in the Contract and will be fully carried through the initial phase of exploration.

Emeralds’ Chief Executive Officer, Angus MacAskill, said:

“We are very pleased with the award of our third ANH E&P Contract in Colombia. The new contract builds our position in the Putumayo Basin and the deal with Vetra minimises our capital exposure while retaining a material interest. We look forward to working with our new partners in this area.”

Enquiries: Helen Manning 020 7925 2440

Background information :

Vetra Energy Group L.L.C. (previously Vetra Group A.V.V) is a private company registered in the United States. Vetra Group A.V.V. was created in October 2003 by a group of executives from Petróleos de Venezuela, S.A., (“PDVSA”), the Venezuelan state oil company, with the aim of building a portfolio of operated petroleum assets and providing consultancy services.

Vetra’s President, Chief Executive Officer and Chairman is Mr. Calderón Berti who has formerly held the positions of President of OPEC, President of PDVSA, Minister of Energy and Mines and Minister of Foreign Relations in Venezuela. .

Since 2003, Vetra has developed a portfolio of interests in three fields in Colombia (La Rompida, Sur Oriente, Arjona) and one multiple services contract in the Pirineos field in Mexico.