SURREY, United Kingdom, June 13, 2002 (PRIMEZONE) --Emerald Energy Plc:
AGM Statement
At today's Annual General Meeting of Emerald Energy, the U.K. based oil exploration company with activities in South America, Graeme Elliot, Chairman, made the following statement: "In my Chairman's statement in the 2002 Annual Report and Accounts, I highlighted the significant changes that have taken place over the year.
"We announced that agreement in principle had been reached with Ecopetrol, the Colombian state oil company, in respect of commerciality on the Gigante discovery. The application for commerciality was delivered to Ecopetrol last week and we await their approval within ninety days of the application date. When granted, this approval will result in Emerald Energy owning 100% of the Matambo Block, net of the 20% government royalty, until we have recovered 200% of our costs including, interalia, the cost of drilling Gigante2 and all subsequent field development, after which Ecopetrol will have the right to backin, in accordance with the Association Contract.
"We continue our farmin negotiations which may lead to one or more parties participating in the Matambo Association Contract. This process is taking longer than we had hoped, due, in part, to the current security situation in Colombia following the presidential elections.
"Our current producing well in Colombia, Gigante1A, continues to produce at around 650 bopd and we are evaluating the economic benefits of further chemical treatments to enhance production.
"Our dispute with the insurers over expenditure of U.S. $2.2 million incurred, in restoring the well to its status prior to the fire in May 2000, but which has not yet been reimbursed, will now result in a mediation process in London. Emerald has also lodged a petition seeking full recovery and costs in Hidalgo County Texas.
"The sale of the balance of our West Virginia fields is progressingand with heads of agreement signed, completion subject to regulatoryapproval is expected within the next four to five weeks."
ENQUIRIES:
Emerald Energy Plc Tel: 0208 823 9140 Iain Alexander, Chief Executive College Hill Tel: 0207 457 2020 Michael Padley / Nicholas Nelson