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EMERALD RESOURCES NL — Capital/Financing Update 2010
Jan 26, 2010
64849_rns_2010-01-26_873d54d4-67c0-43ac-9840-43df18bd97a8.pdf
Capital/Financing Update
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Suite 2, 12 Parliament Place West Perth WA 6005 Ph: +618 9482 0510 Fax: +618 9482 0505 Email: [email protected] www.emeraldoilandgas.com
27 January 2010
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
Emerald Acquires Additional Appalachian Gas Acreage and Wells in Kentucky
Kentucky Energy Partners; Magoffin County, Kentucky USA (Emerald 75% Working Interest)
Emerald is pleased to advise that it's 75% owned company, Kentucky Energy Partners LLC (KEP) has acquired two new gas leases in addition to leases previously obtained over Beetree project area in Magoffin County, Kentucky. This brings KEP's combined holdings to 12 gas wells, 2 oil wells and approximately 1350 acres in three separate gas projects.
The Appalachian basin is characterised by thousands of low productivity, shallow gas wells, typically capable of producing less than 100Mcfd. However, small, highly localised areas of relatively high productivity gas wells, typically covering no more than a few hundred acres, exist where certain geological characteristics are present. Emerald has conducted extensive subsurface studies over the Magoffin County area in Eastern Kentucky and formed Kentucky Energy Partners LLC in November 2009, specifically to identify and acquire leases and wells for gas projects targeting these high productivity areas.
Three separate gas projects are now being progressed concurrently by KEP. An aggressive well assessment program involving two well service rigs, two well testing packages and well logging is currently underway to individually assess the gas wells to determine their condition and production potential. In parallel with the well assessment program, production facilities are being installed and pipeline right of ways are being secured to connect the wells to sales gas gathering systems as soon as practical.
Well production rates will be the subject of further announcements over the coming weeks as information from the well assessment program becomes available. Initial gas sales are expected to commence in the first quarter of 2010.
Glossary Mcfd Thousand cubic feet per day MMcfd Million cubic feet per day
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, and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on both conventional and nonconventional 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.
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.