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EMERALD RESOURCES NL — Capital/Financing Update 2008
Jan 16, 2008
64849_rns_2008-01-16_21473cf2-e383-4f5b-9b81-600d28ba1b0c.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
17 January 2008
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
PLACEMENT TO RAISE $2,025,000
The Directors of Emerald Oil & Gas NL (“ Emerald ” or “the Company ”) are pleased to advise that the Company has reached an in principle agreement with Capital Investment Partners Pty Ltd (“ CIP ”) to raise up to $2.025 million to provide additional funds for exploration and production activities in the USA and Canning Basin, WA.
Details of the placement
The issue of up to 22.5 million shares at $0.09 each with a free attaching 1 for 1 listed option expiring in May 2008, will be made predominantly to international and domestic clients of CIP.
The placement will be completed in two tranches:
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the tranche 1 placement of 4,500,000 shares at $0.09 and 4,500,000 options to raise $405,000 (within the 15% share issue capacity) is anticipated to close on or about 23[rd] January 2008; and
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the tranche 2 placement of 18,000,000 shares at $0.09 and 18,000,000 options to raise $1,620,000 which is subject to shareholder approval anticipated in late February 2008.
Use of proceeds
The funds will enable Emerald to progress its exploration and development projects in Australia and USA, as follows:
Australia
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Re-testing the Stokes Bay#1 well at the EP104/R1 project in the Canning Basin;
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Initial exploration at EP 4-05/6 licence (100% EMR) following completion of Native Title negotiations.
USA
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Increasing production activities at the Palito Blanco project in Texas;
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Participation in a 2nd well at the NW Alice project in Texas following 3D seismic survey;
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Participation in further exploration well at the Greenbush project, Nth Dakota;
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Evaluation of new projects and drilling opportunities, and for working capital.
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.
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]
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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