EMERALD RESOURCES NL — Capital/Financing Update 2007

Nov 25, 2007

==> picture [459 x 21] intentionally omitted <==

PANCONTINENTAL OIL & GAS NL

ASX Release

26 November 2007

==> picture [132 x 98] intentionally omitted <==

www.pancon.com.au

Stokes Bay-1 Exploration Well Drilling Update

MARKET DATA

ASX: PCL

12 month high: $0.085 12 month low: $0.047 Market cap: $ 21M Issued shares: 444M

PROJECTS

� Australia Onshore Canning Basin Offshore Carnarvon Basin

� Kenya Offshore Lamu Basin

� Malta Offshore Chebba Marin Basin

� Namibia Offshore, Walvis Basin

DIRECTORS & MANAGEMENT

David Kennedy Chairman

Peter Munachen Finance Director Barry Rushworth New Ventures Director

Ian Cornelius Non-executive Director

Andy Svalbe Non-executive Director Matthew Battrick General Manager

CONTACT DETAILS

Pancontinental Oil & Gas Ground Flr 288 Stirling St Perth Western Australia T: +61 8 9227 3220 F: +61 8 9227 3211 E: info@pancon.com.au

Pancontinental Oil and Gas NL (ASX: PCL) wishes to advise that Joint Venture (JV) Operator Arc Energy (ASX: ARQ) advises that operations at the Stokes Bay-01 have currently been suspended due to heavy rain and will be resumed when weather allows.

Since the last report on November 15[th] announcing that testing had recommenced, swabbing operations have continued through the week, and as of 6:00am, 22[nd] November 2007, the swabbing operations had recovered 624bbls of drilling fluid lost to the formation during drilling, This brings the total fluids recovered to 3644bbls, and represents some 29% of the estimated 12,400bbls of drilling fluid lost.

Recent testing operations have utilised a specialised testing crew that was more cost efficient than having the Century Rig 18 on location. At this point, the nature of the reservoir fluid and the source of the pressure within the reservoir are still undetermined.

Equity positions in the Stokes Bay-1 well are now:

• ARC Energy Limited 38.95% (Operator)

• • Empire Oil and Gas NL 14.80% • Emerald Oil & Gas NL 12.75% • Pancontinental Oil & Gas NL 10.00% • Phoenix Resources PLC 10.00% • First Australian Resources Limited 08.00% • Indigo Oil Pty Ltd 05.50%

Enquiries: Matthew Battrick, General Manager Tel: 08 9227 3220, Fax: 08 9227 3211, Email: info@pancon.com.au

The summary report on the oil and gas projects is based on information compiled by Mr M A Battrick, BSc, MAAPG, MPESA, MAICD, MPESGB, General Manager of Pancontinental Oil & Gas NL. Mr Battrick has the relevant degree in geology and has been practising petroleum geology for 26 years. Mr Battrick is a full-time employee of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the information stated in the form and context in which it appears.