Tuesday 21 July 2009

Has Emerald Got Consent to Explore the NE part of Ombu/Capella?

According to page 6 of this link, (http://www.minambiente.gov.co/documentos/Hidrocarburos_100709.pdf), it appears as though Emerald Energy received consent on 9 July 2009 to explore the northern part of the Ombu block.

Previously, Emerald had received environmental consent to drill an 8,000 acre area in the mid-part of the Capella discovery. This is where wells C1 to C6 have been drilled.

They had applied for a further Environmental Permit Area towards the NE of the structure (as explained here: http://www.emeraldenergy.com/documents/EENInvestorPresentationMay2009.pdf Slide 16).

Of course, we have to wait for confirmation of this from the company. However, if confirmed, this permit paves the way for the planned further drilling campaign this year, which ought to prove up a significantly greater portion of the acreage and pave the way for a material reserves upgrade.

Investors must hope that if any takeover offer comes in before the extra drilling takes place, they receive fair value for the whole asset.

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