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EMERALD RESOURCES NL Capital/Financing Update 2007

Nov 4, 2007

64849_rns_2007-11-04_a5c77e97-672b-4dc5-80bd-e049b078bfab.pdf

Capital/Financing Update

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PANCONTINENTAL OIL & GAS NL

ASX Release

05 November 2007

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www.pancon.com.au

Stokes Bay-1 Exploration Well Drilling Update

MARKET DATA

ASX: PCL

12 month high: $0.085 12 month low: $0.054 Market cap: $ 25M Cash at bank: $3.9M Issued shares: 444M

PROJECTS

Pancontinental Oil and Gas NL (ASX: PCL) wishes to advise that Joint Venture (JV) partner and operator of the EP 104 & R1 Onshore Canning Basin project, Arc Energy (ASX: ARQ), has announced that the current operation at the Stokes Bay-1 well bore is running flow test.

Since the last report on 1[st] November, production tubing has been run in the well and a production flow test commenced at 17:00 hours on Sunday 4 November.

Australia Onshore Canning Basin Offshore Carnarvon Basin

Kenya Offshore Lamu Basin

Malta Offshore Chebba Marin Basin

Namibia Offshore

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

The well has been flowing at relatively steady rates of some 3,000 to 4,000 barrels of fluid per day at a well head pressure of some 30 psi. Fluids recovered to date appear from salinity and density measurements to be drilling mud and associated fluids. Equity positions in the deepened section of the Stokes Bay-1 well are now:

ARC Energy Limited 38.95% (Operator)
•• Empire Oil and Gas NLEmerald Oil & Gas NL 14.80%12.75%
•• Pancontinental Oil & Gas NLPhoenix Resources PLC 10.00%10.00%
First Australian Resources Limited 08.00%
Indigo Oil Pty Ltd 05.50%

In excess of [10,000] barrels of drilling fluids were lost during drilling and completion and some [1,500] barrels have been recovered. The test will be continued until formation fluids are identified. No hydrocarbons have been observed to date

Enquiries: Matthew Battrick, General Manager Tel: 08 9227 3220, Fax: 08 9227 3211, Email: [email protected]

CONTACT DETAILS

Pancontinental Oil & Gas Ground Flr 288 Stirling St Perth Western Australia T: +61 8 9227 3220 F: +61 8 9227 3211 E: [email protected]

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.