Emerald updates Colombian operations

Emerald Energy Plc has entered into a farmout agreement with Canacol Energy Inc., which allows Canacol to earn a 10% interest in the Ombu block by paying 100% of the cost of drilling and testing the Capella No.1 exploration well.

Furthermore, Canacol have an option to earn an additional 5% interest in the block by paying 100% of the cost of two further wells plus the cost of a 2D seismic survey over the prospect.

Canacol may earn a further 15% interest in the block by paying 100% of the cost of drilling twelve further wells together with the cost of a 3D seismic survey over the prospect.

Emeralds’ Chief Executive Officer, Angus MacAskill, said we are delighted to be drilling a well on the Capella prospect which has the potential to add material reserves to our Colombian portfolio and a further development well on Vigia which we expect to add to production in the near future.

We are also pleased to welcome Canacol, with their experience in heavy oil recovery projects, as a partner to this project, concluded Mr. MacAskill.