2009-09-21-2009-08-12

Offered to acquire company, gaining interests in Syria, Colombia.

Chinese conglomerate Sinochem Corp., via subsidiary Sinochem Resources UK Ltd., has made an offer to acquire U.K.-based Emerald Energy Plc (London: EEN) in a deal that values the company at £532.1 million (US$880 million). Sinchem will pay 750 pence in cash per Emerald share, representing a premium of 34% to the closing price on July 10. Emerald holds interests in South America and the Middle East. As of year-end 2008, Emerald had proven and probable working interest reserves of 56.7 million barrels and contingent resources of 37.9 million barrels. Emerald has a 50% interest in Block 26 in Syria, which includes both the Khurbet East and Yousefieh fields. Khurbet East Field is currently on production at more than 14,000 barrels of oil per day gross with fluid processing capacity of the early production facility recently expanded to 18,000 barrels of fluid per day gross. A material oil discovery in Yousefieh Field is scheduled for appraisal drilling in the third-quarter. The company also holds interests in nine licenses in Colombia and one in Peru, covering Block 163. Its Colombian properties include significant interests in the Gigante, Campo Rico, Vigia, Centauro Sur, Silfide, Aureliano, Totumal and Capella fields and the Maranta, Agerato, Durillo and VSM32 exploration projects. Sinochem president Han Gensheng says, "Emerald's Syrian and Colombian assets have attractive growth potential and, by bringing Emerald into the Sinochem group, will reinforce our position in the Middle East and South America. The acquisition strengthens our operations and represents another step in our strategy of building a global energy company." Standard Chartered and The Balloch Group are financial advisors to Sinochem Resources UK Ltd. Harland Capital is financial advisor to Emerald.