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EMERALD RESOURCES NL — Capital/Financing Update 2008
Mar 13, 2008
64849_rns_2008-03-13_d18dbe2f-657d-443b-bc7c-de7acf62940a.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
14 March 2008
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
PALITO BLANCO PROJECT –UPDATE
Emerald Oil & Gas NL (“Emerald”) is pleased to provide an update on activities at the Palito Blanco project in Jim Wells and Duval Counties, Texas.
PALITO BLANCO PROJECT DUVAL AND JIM WELLS COUNTIES, TEXAS (Emerald earning 15% Working interest, Operator: Oso Exploration.)
Current Activity:
The operator OSO Exploration has advised that activities at the Jamie Garcia #2 well have been suspended pending a review of the production attempts from the Yegua 14 through 21 sand zones since November 2007. Gas production from the recently fracture treated Y-14 zone has dropped to nil and water production has risen to some 528 bbls/ day. Flowing tubing pressure (FTP) was 1500#.
The Y-14 sand which produced 0.3 BCF gas from the nearby Jamie Garcia #1 well (casing collapsed) is extremely porous and permeable as evidenced from water flow rates in excess of 500 bbls/ day. It is possible that water has been “coned” from below the gas/ water contact or the original gas/ water contact has moved up (due to nearby production) therefore precluding a water-free completion at Jamie Garcia #2 well, even though it is structurally high to the Jamie Garcia #1 well.
Future Plans:
A recommendation is anticipated from the operator OSO Exploration to either attempt a recompletion from the lower Y-18 and Y-19 sands or plug and abandon the well. This decision will be made early next week. Due to adverse hole conditions it is not possible to complete the overlying Frio, Jackson and Hockley sands (5000-6000 ft depths) from this well bore. A shallow well might be drilled at a later date pending a technical review.
Emerald Interest:
Emerald has a 15% working interest in this prospect.
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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