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EMERALD RESOURCES NL Capital/Financing Update 2007

Sep 5, 2007

64849_rns_2007-09-05_5544dc96-e258-425a-9acd-85531984cb7f.pdf

Capital/Financing Update

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==> picture [88 x 71] intentionally omitted <==

EMPIRE OIL & GAS NL

(ACN 55 063 613 730)

SUITES 7 & 8 154 HAMPDEN ROAD NEDLANDS 6009 WESTERN AUSTRALIA TELEPHONE 61 8 6389 2687 FACSIMILE 61 8 9386 6812 EMAIL [email protected] WEBSITE www.empireoil.com.au\

6 September 2007

ASX Limited Company Announcements Office Level 4 20 Bridge Street SYDNEY NSW 2000

Dear Sirs

RE: EP 104/R1 CANNING BASIN, WESTERN AUSTRALIA – UPDATE ON THE VALENTINE-1 WELL

Please find attached a release providing Empire’s summary on the progress of the drilling of the Valentine-1 exploration well, Canning Basin, Western Australia..

Drilling to date to 2589 metres has revealed elevated gas readings in the well bore. Electric wireline logs have been run in the Valentine-1 well and as of 6.00 am on 6 September 2007 interpretation of these logs and their significance is currently being undertaken.

I look forward to providing the interpretation of the wireline logs over all the hydrocarbon indications recorded in the Valentine-1 well to date.

Regards

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J L CRAIG MARSHALL Managing Director EMPIRE OIL & GAS N.L.

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VALENTINE-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date: 6 September 2007 6 September 2007
Permit: R1
Well Location: Lat : 17o08’ 23.46”S
Long: 123o42’ 32.40”E
Directional offset to target: 0 metres
Elevation: Ground Level is 12.4mAMSL
RotaryTable is 18.1mAMSL
Prognosed Depths
(measured KB):
Top primary objective Total depth
3,222 metres 3,407 metres
Prognosed drilling time: 25 days
Spud Date: 1230 hrs,WST 12 August 2007
Present Depth: 2,589mMD
Time of Reporting: 0600 hrs,WST 6 September 2007
Operations Since Last
Report:
Wiper trip to condition the hole prior to present wireline
loggingsuite.
Current Operations: Wireline Loggingthe interval 808m to 2589m MD.
Hydrocarbon indications: Previouslyannounced: Beingevaluated bywireline logging.
Participants in the well
(post earning):
Empire Oil and Gas NL - 14.8%
ARC Energy Limited - 38.95% (Operator)
Emerald Oil & Gas NL - 12.75%
Pancontinental Oil & Gas NL - 10.0%
Phoenix Resources PLC - 10.0%
First Australian Resources Limited - 8.0%
Indigo Oil PtyLtd - 5.5%
Comment: N/A

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