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EMERALD RESOURCES NL — Capital/Financing Update 2008
May 25, 2008
64849_rns_2008-05-25_f6ba6ba5-ba60-4d45-807e-feb96d57c3f9.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
26 May 2008
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
GREENBUSH PROSPECT UPDATE
Emerald Oil & Gas NL (“Emerald”) is pleased to provide an update on its Greenbush Project in North Dakota, USA.
GREENBUSH PROSPECT, WARD & RENVILLE COUNTIES, NORTH DAKOTA (Emerald 15% Working interest, Operator: Golden Eye Resources Inc.)
Current Activity:
The operator Golden Eye Resources has advised that the spud date for the first well, J. Brekhus #2-14 has been brought forward approximately one month to around June 9, 2008. This first well will be a “deep” test (9000+ feet) to test the Bakken Shale formation and to evaluate a Devonian-age Pinnacle reef mapped from 3-D seismic data. The second, shallower well (Steinberger #1-16) will test the Mississippian-age Sherwood and Mohall oolitic buildups or mounds and the Kisbey Sandstones also mapped with 3-D seismic.
Emerald notes that heightened recent activity around the Greenbush project exploiting the Bakken formation has significantly enhanced the prospectivity of the Greenbush lease area, as announced on 13 May 2008. The first well in the upcoming drilling program will test the Bakken formation as well as the deeper Pinnacle Reef.
Future Plans:
Prepare for drilling two wells commencing around June 9, 2008.
Emerald Interest:
Emerald has a 15% working interest in this prospect.
For more information please contact:
Tel: +618 9482 0510
Emerald Oil & Gas NL
JOHN HANNAFORD Executive Director – Finance [email protected]
BOB BERVEN Executive Director – Technical [email protected]
About the Greenbush Project
Drilling activity in the Bakken Shale has recently significantly increased in North Dakota. On April 10, 2008 the United Sates Geological Survey (USGS) released a report estimating that recoverable oil “resources” from the Bakken within the USA portion of the Williston Basin could reach 3.65 billion barrels.
The significance of the above mentioned “deep” test on the Greenbush acreage is that it will evaluate the fractured, oil-bearing Bakken Shale which overlies the Devonian pinnacle reef. The Bakken is a prolific oil producer to the south and west in North Dakota and Montana and to the North in Saskatchewan, Canada. Recent lease acquisition activity and horizontal well drilling indicates that the Bakken oil play is moving eastwards towards Greenbush Prospect. Hess Corporation is currently completing a deep (8000+ feet) Bakken “horizontal” test well located only six (6) miles west of Emerald’s land holdings at the Greenbush Project.
Hess in its application to the State of North Dakota included the following Bakken “Resource” parameters
| ters | |
|---|---|
| Thickness | 32 feet (10 meters) |
| Porosity | 6% |
| Oil Saturation | 80% |
| Acreage | 1280 acres |
| Original Oil In Place OOIP | 9 million bbls |
| Solution Gas/Oil Ratio | 1300 SCF/STB |
| Recovery Factor | 7% of OOIP |
| Recoverable Resources | 674,000 BO, 876mmcf gas |
Emerald and Partners currently control some 8700+ acres at Greenbush Prospect. This represents some seven (7) 1280 acre spacing units under the above Bakken development scenario presented by Hess Corp for horizontal wells. The potential recoverable resource numbers within the Bakken at Greenbush has been estimated at 4.5+million barrels of oil and 5.5+Bcf gas. These are very significant potential resource numbers given the current record prices for both oil and gas in the USA. The key geological parameters to encountering “Fractured Bakken” is proximity to major structures such as faults, folds, drape over basement or reefal highs, differential compaction, etc. The Greenbush Prospect has a number of favourable structural elements that could help increase Bakken productivity due to enhanced fracturing. They can be better defined by the 3-D seismic data which was acquired over the Greenbush block some twelve months ago.
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 Kentucky, West Virginia, North Dakota and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on both conventional and non-conventional reservoir targets for oil and gas prospects. 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.