Eromanga Hydrocarbons Limited (ASX: ERH, ERHOA) (Eromanga) is...

Eromanga Hydrocarbons Limited (ASX: ERH, ERHOA) (Eromanga) is pleased to provide the following update on its operations.
1. Continental USA
Klick 22-1H (ERH 49.2% WI) Horizontal Well
Analysis of the Baker RPM log has resulted in a decision by the Operator to have the lateral section perforated over 3,465 feet (1.06 kilometres) with ten planned fracture stages. Fracture tanks are being moved into place and work completed so that the well can be fractured during the first week of January 2011 and production commenced as soon as possible thereafter.
The operator has advised that to facilitate immediate revenue from production, it intends to have the well producing oil into stock tanks and natural gas sold (as oppose to vented) as soon as possible after hydraulic fracturing is completed. Accordingly, Atlas Pipeline is securing right-of-way and expects to have the gas line and meter in place for immediate sales post fracturing. The tank battery has been purchased and will be delivered and installed imminently. Saltwater lines are being laid and tied-into the main disposal line.
Kansas 4,000 Acre Horizontal Drilling Exploration Opportunity (ERH 50%)
The CMX-Eromanga Joint Venture is continuing to secure acreage with the intention of proving-up Horizontal drilling opportunities at an existing mature oilfield that includes the Mississippian Reservoir in Kansas, USA.
2. Harpia & Guara Oil Fields, Sergipe Alagoas Basin Brazil (ERH 40%)
The ANP, Brazils oil industry regulator, has approved the Guara field as a Production Phase, Development Stage field. Further technical information has been requested by the ANP prior to finalizing the production area ring-fence.
Discussions are continuing between Nord and Eromanga on the optimal development plan for the Guara and Harpia fields. The parties are committed to achieving technical and commercial alignment prior to commencing the full field development plan. A timetable has been agreed to resolve these matters, with third party arbitration being proposed by Nord if mutual agreement is not achieved within the proposed time frame.