EMERALD RESOURCES NL — Capital/Financing Update 2008

May 14, 2008

==> picture [190 x 58] intentionally omitted <==

Level 2, 16 Altona Street West Perth WA 6005 Ph: +618 9482 0500 Fx: +618 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

15 May 2008

Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000

APPALACHIAN PROJECT - FIRST WELL COMPLETED

Highlights

• First well completed, tied in to flow lines

• 26 feet of gas pay in Big Six Sandstone at 2,344 feet depth

• Well flow tested at 2 MMcf gas per day absolute open flow (AOF)

• Estimate stabilised production rate of 350 – 400 Mcf per day on 70 lbs line pressure

• Gas to be sold into ‘grid’ upon completion of Amine treatment plant

Emerald Oil & Gas NL (“Emerald”) is pleased to announce that the first well in its Appalachian Project has been completed and hooked up to production facilities.

The JD Vanderpool #5 well, located in eastern Kentucky was drilled in 2001 but not tied in to production facilities due to small amounts of Hydrogen Sulphide (H2S) in the gas. Emerald has acquired an 80% interest in the well from the Operator, P&J Resources for a total cost of US$250,000 as its first stage of gas production under Emerald’s Drilling and Operating Agreement announced on April 30, 2008. P&J are currently completing installation of an Amine plant (at its sole cost) to remove the H2S, which will allow the well to be hooked into the pipeline grid for production and sales.

The well intersected the Big Six formation at 2,344 feet, and after logging flow tested at 2 MMcf gas per day AOF. This is a natural flow with no fracture treatment. It is estimated that the well will flow at a stabilised production flow rate of approximately 350 – 400 Mcf per day once choked back on current line pressure of 70 lbs.

Several Productive and Prospective Formations

The Kentucky and West Virginia acreage includes several productive formations including shallow (Berea, Big Injun sandstones), deeper (Big Six sandstone) and unconventional (Ohio shale, Devonian Marcellus shale, and

Camb-Ordovician Knox shale). The acreage has existing production predominantly from shallower producing zones drilled from the 1940’s onwards. These wells still have deeper potential plus re-work and offset location opportunities.

Completed well costs will vary from approximately US$300,000 for shallower wells, $600,000 for deeper vertical wells and to up to $1,000,000 for deeper horizontal wells. Wells in West Virginia are more expensive due intermediate casing being set through a water zone.

Emerald’s initial drilling program will include a mix of shallow, deep and unconventional targets. Subsequent programs will include horizontal completions.

First West Virginia well

The Operator is currently staking a location for the first deep well of the program to be drilled on the West Virginia acreage. Spudding of the well is anticipated within 7 days.

For more information please contact:

Emerald Oil & Gas NL

Tel: +618 9482 0510

JOHN HANNAFORD BOB BERVEN Executive Director – Finance Executive Director – Technical jhannaford@emeraldoilandgas.com bberven@emeraldoilandgas.com

About the Appalachian Gas Development Project

Emerald announced on April 30, 2008 that it had entered into a Drilling and Operating Agreement to develop two 45,000 acre lease areas in eastern Kentucky and western West Virginia. Under the agreement Emerald will earn an 80% working interest in a 4000 foot radius spacing unit for each well drilled for 100% of the drilling costs of each well. Both acreage areas have significant potential for infill drilling on 40 acre spacing, as well as several productive horizons.

The Appalachian Valley is USA’s oldest oil and gas producing area. Recent discoveries in the Marcellus Shale have now focused renewed exploration activity on the region. Combined with high gas prices, extensive infrastructure, enhanced drilling and completion techniques the area now offers extensive upside potential and compelling economics.

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.

Page 2

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.

Page 3