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EMERALD RESOURCES NL — Capital/Financing Update 2007
Oct 1, 2007
64849_rns_2007-10-01_97ede796-d1b7-4201-a1d3-92c07a0bd8fa.pdf
Capital/Financing Update
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Level 2, 16 Altona Street West Perth WA 6005 Ph: +618 9482 0500 Fx: +618 9482 0505
Email: [email protected] www.emeraldoilandgas.com
2 October 2007
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
PALITO BLANCO GAS DISCOVERY
Emerald Oil & Gas NL (“Emerald”) is pleased to provide an update on drilling at the Jaime Garcia gas unit #2 well at the Palito Blanco prospect located in Duval and Jim Wells Counties, Texas USA. A gas discovery has been confirmed within multiple sands of the Yegua formation between 7,300 and 8,100 feet.
PALITO BLANCO PROJECT
DUVAL AND JIM WELLS COUNTIES, TEXAS
(Emerald earning 15% Working interest, Operator: Oso Exploration.)
Progress report at the Jaime Garcia Gas Unit #2 well as at 6.00pm 1 October 2007 (Texas time).
| Current Depth: | 8,250 feet. Total Depth. |
|---|---|
| Current Activity: | Recovering Schlumberger FIT tool from Yegua |
| 21 sand prior to running 4½ inch production | |
| casing after running wireline logs. | |
| Wireline logs show the Yegua formation sands to | |
| be approximately 47 feet structurally high to | |
| offset well, Jaime Garcia gas unit #1. | |
| The target Yegua 14, 15, and 19 sands between | |
| approximately 7,320 feet and 7,850 feet appear | |
| to be gas-bearing over a combined sand interval | |
| of approximately 32 feet. These three sands and | |
| the lowest Yegua 21 sand at 8,065 to 8,100 feet | |
| (35 feet gross sand interval) will be later | |
| perforated and tested through casing. | |
| Emerald Interest: | Emerald is earning a 15% working interest in |
| this prospect. |
About Palito Blanco Prospect: Palito Blanco Prospect is located in the South
Texas Basin within Duval and Jim Wells Counties some 120 miles south of San Antonio. It is located within the prolific Yegua multiple-sand, gas-producing fairway within Braman, Four Seasons and Palito Blanco fault – separated fields, which to date have produced 45+ BCF gas and 1.0+ million barrels of condensate. Some 400 acres are currently under lease within a larger AMI. The current 8,250 foot well has tested the Yegua formation multiple-sand package between 7,300 feet and 8,100 feet, the lowest of which was the Y-21 sand.
Structurally there appears to be room for 3-4 development wells around the original Jaime Garcia #1 well. Total potential resources are approximately 10 BCF gas and 100,000+ barrels of condensate. Further development potential might emerge from the larger AMI (area of mutual interest) with Oso Exploration.
For more information please contact:
Emerald Oil & Gas NL
Tel: +618 9482 0510
JOHN HANNAFORD Executive Director – Finance [email protected]
BOB BERVEN
Executive Director – Technical [email protected]
About Emerald Oil & Gas NL
Emerald Oil & Gas NL (ASX: EMR; EMRO) was listed on the ASX in June 2006, raising $4 million. Emerald is an oil and gas exploration and production company with project interests in North Dakota and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on conventional reservoir targets for oil and gas prospects and its primary objective is to achieve near term production and cashflow to build shareholder value and provide funds to fuel further growth. Emerald’s strategy is to take modest but meaningful positions in low risk exploration projects that can be swiftly brought into production.
Information in this announcement pertaining to exploration potential was compiled by Robert Berven, Emerald Oil & Gas NL’s Technical Director who is a Member of the Australasian Institute of Mining and Metallurgy and the American Association of Petroleum Geologists CPG # 2498.
Statements regarding Emerald’s plans with respect to its petroleum properties are forwardlooking statements. There can be no assurance that Emerald’s plans for development of its petroleum properties will proceed as currently expected. There can be no assurance that Emerald will be able to confirm the presence of additional petroleum deposits, that any discovery will prove to be economic or that an oil or gas field will successfully be developed on any of Emerald’s petroleum properties.
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