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EMERALD RESOURCES NL — Capital/Financing Update 2008
May 4, 2008
64849_rns_2008-05-04_e61dd3cf-fb4d-4de2-939c-fe43fa6b57cc.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
5 May 2008
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
APPALACHIAN VALLEY MOU FOR POTENTIAL DRILLING FUNDING
Memorandum of Understanding
Emerald Oil & Gas NL (“Emerald”) is pleased to announce it has signed a Memorandum of Understanding (MOU) with Florida based investment fund Avanti Corp LLC whereby Avanti has been granted the right for 60 days to arrange funding of up to US$25 million for drilling Emerald’s Kentucky and West Virginia project. Under the agreement Avanti will, by providing such funding, earn half of Emerald’s working interest in each well drilled for the payment of 100% of the drilling, completion and hook-up costs of the wells. Emerald will provide technical expertise, developmental acreage and will manage all aspects of the project.
On April 30, Emerald announced a drilling and operating agreement to earn an 80% interest in 90,000 acres of leases located in eastern Kentucky and southern West Virginia. The MOU with Avanti will be directed to development drilling on these leases. The MOU contemplates that if Avanti provides funding it will be in tranches of approximately US$4 million at a time for up to a total of $25 million upon presentation of drilling programmes and AFEs.
The MOU provides that the parties will use their best endeavours to execute a joint participation agreement to formalize the term of the MOU within 60 days.
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]
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 North Dakota and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on conventional reservoir targets for oil and gas prospects and 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.
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