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EMERALD RESOURCES NL — Capital/Financing Update 2008
May 7, 2008
64849_rns_2008-05-07_59242fd6-f777-48be-a008-3a38f0734398.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
8 May 2008
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
Notice of Expiry of Options
The directors of Emerald Oil and Gas NL (‘the Company”) wish to advise that following listed options (ASX Code: EMRO) are due to expire on 31 May 2008.
| Description | Number |
|---|---|
| Options exercisable at 20 cents | 58,105,627 |
The Company has despatched a notice and Company Update letter (as attached) to holders of these options which provides details of the option expiry and instructions on how optionholders can exercise their options to subscribe for shares.
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]
Level 2, 16 Altona Street, West Perth WA 6005 PO Box 902, West Perth WA 6872 Ph: 08 9482 0510 Fax: 08 9482 0505 Web: www.emeraldoilandgas.com
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Dear Optionholder,
COMPANY UPDATE FOR OPTIONS HOLDERS
Emerald Oil & Gas NL (“Emerald” or “the Company”) wishes to advise that 58,105,627 listed options (ASX Code: EMRO) are due to expire on 31 May 2008.
Emerald has just announced an exciting new 90,000 acre Gas Development Project in Kentucky and West Virginia, USA. This Appalachian Basin project heralds a new direction for Emerald focusing the company’s activities on early development of a cashflow generating production base and establishment of a significant resource/reserve inventory. Emerald is very excited by this uniquely structured opportunity to enter into a highly prospective area for natural gas with exposure to a multi-well drilling and completion project. Under Emerald’s agreement with the leaseowner it will earn an 80% working interest in each well drilled. Emerald has also signed an MOU with a US investment fund to contribute up to US$25 million towards drilling on this project for half of Emerald’s working interest, for 100% of the drilling costs.
The Appalachian wells are relatively shallow (2,000 to 6,000) feet, gas prices are high ($US 10+/mcfg) and demand is high (Population in N/E USA) with abundant infrastructure (pipelines, treatment plants etc) in place.
At the Greenbush Prospect in North Dakota USA, a fractured Bakken shale oil play is developing in the vicinity of Emerald’s acreage holdings. Hess Corporation has just permitted a deep (8,000+ feet) Bakken test some seven miles west of Emerald’s land holdings. This is a very significant new development and follows Bakken successes to the West and South in North Dakota and Montana and to the North in Saskatchewan, Canada.
At North West Alice prospect in Texas, the 3-D seismic interpretation is progressing by the operator Noble Energy. Emerald anticipates new development well locations being recommended soon which will include a probable sidetrack and recompletion on the RJ Hunter #1 discovery well where the casing collapsed on completion in April 2007.
In the Canning Basin, ARC Energy plans to re-test the Nullara formation intersected in the Stokes Bay # 1 well, in August 2007, with significant potential upside for Emerald’s 12.75% interest.
The remainder of this year presents a real opportunity for Emerald to generate significant production revenues as well as to create an extensive reserve/resource base from its development and exploration projects, with the resultant increase in shareholder value. The funds raised by the exercise of options will allow Emerald to fast – track this development of the Appalachian project.
For more information please refer to the announcements on Emeralds website or on the ASX platform, or call John Hannaford or Bob Berven on (08) 9482 0510.
Yours sincerely,
For and on behalf of Emerald Oil & Gas NL
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John Hannaford Executive Director-Finance
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