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EMERALD RESOURCES NL Capital/Financing Update 2007

Aug 15, 2007

64849_rns_2007-08-15_b964fc4e-3223-4f55-87de-34d6d56027fe.pdf

Capital/Financing Update

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Ground Floor 288 Stirling Street, Perth Western Australia 6000

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PANCONTINENTAL Oil & Gas NL ABN 95 003 029 543

P O Box 8260 Perth Business Centre Western Australia 6849

Tel: (61 8) 9227 3220 Fax: (61 8) 9227 3211 Email: [email protected] Web: www.pancon.com.au

ASX Release

16 August 2007

VALENTINE DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date: 16 August 2007 16 August 2007
Permit: R1
Well Location: Lat : 17o08’ 23.46”SLong: 123o42’ 32.40”E
Directional offset totarget: 0 metres
Elevation: Ground Level is 12.1mAMSLRotaryTable is 17.8mAMSL
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: 644 mMD
Time of Reporting: 0600 hrs,WST 16 August 2007
Operations Since LastReport: Set 13 3/8’ casing at 112m
Current Operations: Drillingahead 12 ¼” hole
Hydrocarbon indications: None
Participants in the well(post earning): ARC Energy Limited - 38.95% (Operator)Empire Oil and Gas NL - 14.8%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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PANCONTINENTAL Oil & Gas NL ABN 95 003 029 543

Ground Floor 288 Stirling Street, Perth Western Australia 6000

P O Box 8260 Perth Business Centre Western Australia 6849

Tel: (61 8) 9227 3220 Fax: (61 8) 9227 3211 Email: [email protected] Web: www.pancon.com.au

Enquiries:

Matthew Battrick General Manager Tel: 08 9227 3220 Fax: 08 9227 3211 Email: [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.