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EMERALD RESOURCES NL — Capital/Financing Update 2009
Aug 30, 2009
64849_rns_2009-08-30_00137f6f-feb5-4760-9e48-dafac75a09e0.pdf
Capital/Financing Update
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Level 2, 16 Altona Street West Perth WA 6005 Ph: +618 9482 0510 Fax: +618 9482 0505 Email: [email protected] www.emeraldoilandgas.com
31 August 2009
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
INITIAL RESERVES ESTIMATE
Emerald Oil & Gas NL (“Emerald” or “the Company”) is pleased to report reserves and valuation results from the first independent reserves estimate for Emerald's oil and gas assets in the Appalachians (Kentucky and West Virginia) and Texas. Reserves and Net Present Value estimates for Emerald's assets were prepared by Ralph E. Davis Associates, Inc., an independent oil and gas consultancy based in Houston Texas.
Emerald Oil and Gas NL Net Reserves and Valuation
| Reserves | ProvedP1 | ProbableP2 | PossibleP3 | P1 + P2 + P3 |
|---|---|---|---|---|
| Gas (Bcf) | 2.3 | 1.6 | 10.0 | 14.1 |
| Oil (Bbl) | 12,300 | 249,500 | 267,900 | |
| Valuation | ||||
| NPV 10% ($A million)* | 10 | 7 | 49 | 66 |
| Cents per Share** | 8 | 6 | 43 | 57 |
- assuming USD/AUD = 0.80
** 115.5 million shares outstanding
Reserves are based on Emerald's interests in 10 existing gas wells and 44 future development wells. Hydrocarbon reserves for two Appalachian gas wells are still subject to well assignment documentation being finalised and filed with the relevant authorities.
Valuation cash flows used published futures prices for Henry Hub natural gas (ranging between $US4.59 and 7.17) and West Texas intermediate oil (ranging between $US72 and $US87).
Emerald hopes to significantly increase reserves in all categories through activities planned in the current financial year.
For more information please contact:
Emerald Oil & Gas NL
Tel: +618 9482 0510
MIKE KRZUS Managing Director [email protected]
About Emerald Oil & Gas NL
Emerald Oil & Gas NL (ASX: EMR), listed on the ASX in June 2006, 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.
The information in this report that relates to reserves and valuation results is based on information compiled by Mr Allen Barron of Ralph E. Davis Associates Inc., an independent oil and gas consultancy based in Houston. Mr Barron is a consultant of the company and is a member of the American Association of Petroleum Geologists.. Mr Barron has sufficient and relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Barron consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Statements regarding Emerald’s plans with respect to its petroleum properties are forward-looking 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.