Brazilian Oil - Operations Update Eromanga Hydrocarbons NL (ASX:...

Brazilian Oil - Operations Update Eromanga Hydrocarbons NL (ASX: ERH, ERHO, ERHCA) is pleased to provide an update on its Brazilian oil operations as follows:
1. Block 330 Sergipe Alagoas Basin (Gavea Joint Venture - ERH 40%)
The well was completed for future production on 25 March 2008. Application has been made to the ANP for an extended production test. Development planning has commenced and options for acid stimulations and horizontal wells are being assessed.
2. Block 430 Sergipe Alagoas Basin (Gavea Joint Venture - ERH 40%)
Cuttings and logs confirmed oil shows over a 143 meter interval, in basement and carbonate formations. Neighbouring fields produce extensively from both intervals. It is understood that up to half of the production from the neighbouring Angelim field has been from the fractured basement play alone, and this field has been in production since 1968. The Joint Venture has released the SONDA-ETX2 exploration rig so that flow tests can be undertaken using a work over rig. A second similar target has been identified on Block 430 based on re-processing of seismic data that was recently made available by the ANP. The Joint Venture is working to secure an exploration rig to test this target during the third quarter.
3. Block REC-T-138 Reconcavo Basin (Silver Marlin Joint Venture - ERH 50%)
Silver Marlin is negotiating with drilling contractors to complete a two well programme in the Reconcavo Basin which is expected to commence in the third quarter of 2008. Terminal Depth for the well at block REC-T-138 is expected to be 1710m with primary targets in the Agua Grande and Sergi formations. Secondary targets have also been identified from seismic in the Pojuca and Candeias formations. These formations are productive in the neighbouring fields with oil production ranging from 28 to 38 API.
4. Block REC-T-59 Reconcavo Basin (Silver Marlin Joint Venture - ERH 50%)
Terminal Depth for the well at block REC-T- 59 is expected to be 2100m with primary targets in the Agua Grande , Itaparica and Sergi formations. Secondary targets have also been identified from seismic in the Pojuca and Candeias formations.
Eromanga’s participation in the Silver Marlin Joint Venture has been approved by the ANP, and similar approval is expected for the Gavea JV shortly. Phil Galloway Chief Executive Officer Enquiries: Please