EMERALD RESOURCES NL — Interim / Quarterly Report 2008

Apr 29, 2008

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Level 2, 16 Altona Street West Perth WA 6005 Ph: 08 9482 0500 Fx: 08 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

30 April, 2008

Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000

QUARTERLY ACTIVITIES AND CASHFLOW REPORT - MARCH 31, 2008

Please find attached the Quarterly Activities Report and Appendix 5B Quarterly Cashflow Report for the quarter ended March 31, 2008.

Yours sincerely,

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JOHN HANNAFORD Director – Finance

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ASX Release

30 April 2008

EMERALD OIL & GAS NL Level 2, 16 Altona Street West Perth WA 6005 Tel: +61 8 9482 0510 Fax:+61 8 9482 0505

Contact:

BOB BERVEN Technical Director bberven@emeraldoilandgas.com

JOHN HANNAFORD Finance Director jhannaford@emeraldoilandgas.com

MORGAN BARRON Company Secretary mbarron@emeraldoilandgas.com

E-MAIL:

info@emeraldoilandgas.com

WEBSITE: www.emeraldoilandgas.com

Directors/Officers:

Jeremy Shervington (Chairman) John Hannaford Bob Berven

Issued Capital:

84,619,373 Shares (EMR) 58,105,627 Listed options (EMRO) 6,486,639 Unlisted options

Market Capitalisation: Undiluted $8.9 m (10.5 cents)

Cash on hand 31.3.08 $2.1m

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 March 2008

Highlights

USA

• Appalachian Basin Gas Development, North Eastern USA. Signed Drilling and Operating Agreement to develop up to 90,000 acres in West Virginia and Kentucky USA whereby Emerald can earn 80% working interest in all wells drilled. 130+ drilling locations already identified, several productive gas horizons from existing producing wells, with deeper shale gas potential. and Project located close to markets and existing infrastructure is in place. Premium gas prices of ~US$11/mcf. Currently in advanced negotiations to secure long term funding.

• NW Alice, Jim Wells County, Texas. The operator Noble Energy has advised that the 3-D seismic data are now being processed and interpreted. A new well and possible recompletion of the RJ Hunter #1 well are anticipated for the third quarter of 2008.

• Greenbush, Ward & Renville countries, North Dakota. The operator Golden Eye Resources has advised that a Bakken shale play has recently developed with a number of new nearby leases being acquired by outside parties. A well is planned for July, 2008 to test a Devonian-aged pinnacle reef defined by 3-D seismic. This well will also test the overlying Bakken shale for its oil potential.

Canning Basin WA

• Emerald’s New Blocks –Investigating native position on new applications for EPL07-6 and T071 (Lacapede Islands). Emerald’s strategic holdings along the structurally significant Pinnacle Fault Zone (PFZ) and its projection offshore continues to expand.

• Stokes Bay #1 - ARC Energy will resume production testing of the porous and permeable Nullara reefal carbonate zone and the overlying Anderson Formation sandstone, which is oilbearing, during Q3 2008. Several ways of evaluating the bottom-hole Nullara carbonates continue to be investigated.

EMERALD OIL & GAS NL – MARCH QUARTERLY REPORT 2008

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Overview

The Board of Emerald Oil & Gas NL hereby presents its quarterly activities report for the quarter ended 31 March 2008.

During the quarter the Company continued to review its existing projects in the USA and to evaluate new exploration and production opportunities. On 30 April, Emerald announced it had signed a Drilling and Operating Agreement with P&J Resources Inc (“P&J”) covering two 45,000 acre lease areas throughout the Big Sandy area of southern West Virginia and Eastern Kentucky.

This project heralds a new direction for Emerald focusing the company’s activities on development of a cashflow generating production base and establishment of a significant resource/reserve inventory. Emerald is very excited by this uniquely structured opportunity to enter into a highly prospective area with exposure to a potentially huge project area.

The 3-D seismic at NW Alice has been completed and is now being processed and interpreted by the operator, Noble Energy. A well is planned for the third quarter possibly close to the RJ Hunter #1 discovery well drilled in March, 2007. At the Greenbush project in North Dakota a Bakken shale play has developed around our acreage holdings with many new leases being acquired by outside parties. A well is planned in July to test the Devonian Pinnacle reef defined by 3-D seismic. This well will pass through the Bakken fractured shale play at the same location. Bakken exploration in the Williston Basin is focused on Montana, North Dakota and southern Saskatchewan in Canada to the north.

In the Canning Basin, Western Australia the Company completed its farm in to earn 12.75% interest in the EP104/R1 JV. In November 2007 the Stokes Bay #1 well was drilled and completed as a potential producer from the Anderson formation and the Devonian Nullara “reefal” carbonates. It will be tested sometime during the third quarter of 2008.

The Company is looking forward to more positive drilling results during the next 3-6 months at the Appalachian Basin, Stokes Bay-1 (possible discovery), NW Alice (discovery/appraisal) and Greenbush.

EMERALD OIL & GAS NL – MARCH QUARTERLY REPORT 2008

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USA Projects

Appalachian Basin, Kentucky and West Virginia (Emerald earning 80% Working Interest; Operator: P&J Resources Inc)

Drilling and Operating Agreement

The Company announced the signing of a Drilling and Operating Agreement with P&J Resources Inc (“P&J”) covering two 45,000 acre lease areas throughout the Big Sandy area of southern West Virginia and Eastern Kentucky. Under the agreement, Emerald, through a US subsidiary will have the right to

earn an 80% working interest for payment of 100% of the drilling and completion costs of each well. Emerald will own a 90% interest in the subsidiary. Under the agreement Emerald will earn its interest in the well plus a 4,000 foot radius spacing unit which will include several additional drilling locations surrounding each well drilled.

P&J as operator will undertake the drilling and completion on a turnkey basis for each well and has allocated two Ingersoll Rand drilling rigs for the program.Wells are drilled on either 20 acre spacing (shallow zones up to 3,500 feet) or 40 acre spacing (deeper zones from 4,000 to 5,000 feet). Both areas have historical shallower production, plus some recent deeper producing wells. This agreement provides Emerald with exposure to over 1,000 well potential program once deeper development and infill of shallower zones is realized over the 10 year term of the agreement.

Emerald has committed to the first well of an initial five well program in the West Virginia leases. The Company has also committed to fund completion and hookup of an existing discovery well in Kentucky to earn an 80% working interest.

Under the agreement P&J have agreed to re-drill any non-commercial wells, solely at P&J’s cost, effectively ensuring a very high success rate for all Emerald wells. This underscores P&J’s and Emerald’s belief in the continuous nature of the productive formations across the acreage.

Appalachian Basin - Geology and Exploration History

The Appalachian Basin in Eastern USA has had a long history of hydrocarbon production, and contains many of the oldest oil & gas fields in the world. This Basin extends from New York State (Northeast) to Alabama (Southwest) a distance in excess of 1,000 kilometres. Much of the early production, which began in the mid-1800’s, has not been systematically recorded. Therefore, there are no independent commercial sources that record a complete production history for the over 1,000 named fields within the Basin. The Appalachian Basin still remains an important part of the USA domestic petroleum industry today, with thousands of oil & gas wells still producing and numerous new wells currently being brought on stream monthly. Rig activity has soared in recent

times due to the current product price environment with both oil & gas prices at record levels. The main focus for many years in the Appalachian Basin has been for natural gas with the majority of wells targeting shallow, low risk, blanket-type pay zones above 5,000 feet depths. However, with suitable sedimentary rocks existing for several thousands of feet in various parts of the Basin, it will have many decades of remaining exploration & productive life. Some factors contributing to the continued interest & success in this Basin are:

• High success rate due to several thick & geographically extensive “blanket” formations throughout large portions of the basin which are productive.

• Geological diversity evidenced by reported production from over 100

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statigraphically discrete intervals and formations, with most wells having several target pay zones.

• Proximity to large eastern USA population centers with high gas prices due to demand in part and low transportation charges.

• Shallow depths to reservoirs means that the majority of production to date has come from reservoirs above 6000 feet, which results in short drilling times and lower costs.

• Premium pricing is obtained for most Appalachian Basin gas due high British thermal unit (BTU) content over most other gases, resulting in a 8-10 percent per MCF revenue increase over Henry Hub base pricing.

A recent article in the March edition of the American Association of Petroleum Geologists (AAPG) Explorer magazine highlights a whole new exploration play that is opening up in Appalachian Basin targeting the Devonian-aged “Marcellus Shale” potential reservoir. It is an “unconventional” fracturedshale play which is deeper than most previous wells but could have huge potential due to its thickness and area extent according to the AAPG article. Horizontal drilling is the key and a press release in the USA from Range Resources in December, 2007 reported gas flow rates between 1.4 & 4.7 mmcf/day from five horizontal wells it had drilled to the “Marcellus”. It is being compared to the famous “Barnett Shale” play in the Fort Worth Basin of Texas where 100’s of horizontal wells are currently being drilled and completed.

The exploration and production program being initiated by Emerald Oil & Gas NL covers a portion of the “Rome Trough”, a northeast-southwest trending tectonic unit, postulated as part of a major Precambrian “rift” system that covers northeastern Kentucky & southwestern West Virginia. The Rome Trough has since been filled with up to 20,000+ feet of sedimentary rocks ranging in age from Cambrian through Pennsylvanian, many of which now form

the reservoirs and target zones for previous, current and future exploration and production efforts. Emerald will initially concentrate on natural gas drilling in eastern Kentucky and southern West Virginia where its partner, P&J Resources, holds most of its exploration and production leases. A number of independent Geological and Engineering consultants have reviewed the P & J Resources’ lease holdings in recent years and all have recommended further work programs. These would consist of field extensions and infill drilling, redrills, replacement wells, twinned wells and deeper exploration to target both conventional reservoirs (sandstones, carbonates), and unconventional reservoirs such as the “Marcellus Shale”. Emerald believes that the “Marcellus Shale” is present under P & J Resources leases in West Virginia.

P & J Resources is well advanced with the construction of new infrastructure facilities such as pipelines, treatment plants and terminals, which will give immediate access to gas markets and open up further acreage blocks to new exploration & development locations.

Potential Gas Resources

Several engineering & geological firms have made estimates of the gas resources that could potentially be developed under the P & J Resources (leases), in Kentucky and West Virginia. The methods used have been reservoir volumetrics and production histories & decline curve analysis. The numbers vary greatly since reservoir volumetrics are limited by data quality (ie logs, cores, sidewall cores, fluid analysis, PVT info, etc), and production histories are limited by lack of information from wells during early producing periods. However, given the size of the lease holdings (90,000 acres) and the multiplicity of potential reservoirs down to 6,000 feet (including the untested “Marcellus Shale”), it is not inconceivable that this area will

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eventually be drilled out on 40-acre spacing with multiple zone completions or twinned wells to tap various horizons. Potential producing zones include the Mississippian Berea Sandstone, the Devonian Shales including the “Marcellus”, the Silurian Big 6 sandstone and the Ordovician Trenton/Black River. This could potentially lead to over 2,000 wells on these leases. If we assume 80-acre spacing this would equate to over 1,000 wells. There are numerous wells in this Basin that have produced for up to 60 years and are still producing at economic rates. Most of these wells have produced a minimum of 0.5 Bcf gas over that period. Assuming an ultimate recovery of 0.5 Bcf gas for a minimum of 1,000 wells then the potential resource could be as much as 500 Bcf of gas.

Infrastructure

Both acreage blocks have pipeline infrastructure servicing existing production. P&J Resources has been extending its gathering line system during the past year including additional pipelines linking up to regional pipelines operated by Columbia Energy, Equitrans and Jefferson Energy.

P&J Resources is in the process of completing installation of an Amine plant on each of the Kentucky and West Virginia acreage areas allowing treatment of impurities including H2S and CO2. No water disposal equipment is required at each of the wells as the gas is dry.

Both wells in the initial program commencing this week can be hooked up to production lines immediately and may be flowing once the Amine plants have been successfully installed in the next few months.

Markets & Pricing

Gas is distributed through Tenneco’s major eastern USA distribution network. Gas is also sold to local communities in the immediate region, with a P&J subsidiary currently servicing approximately 700 retail customers in eastern Kentucky.

The gas produced in these project areas is of high BTU content of approximately 1,200 BTU per cubic foot receiving a premium to market prices. The reference price is the TICO gas price which is generally at a premium to the Henry Hub price due to its closer proximity to markets. Current TICO prices are in the region of $11.00 per Mcf of gas.

All wells will be hooked up to production progressively with gas to be sold under P&J’s existing contracts.

Strategy

This project heralds a new direction for Emerald focusing the company’s activities on development of a cashflow generating production base and establishment of a significant resource/reserve inventory. Emerald is very excited by this uniquely structured opportunity to enter into a highly prospective area with exposure to a potentially huge project area.

Recent activity in the area by Appalachian leaders such as Range Resources (NYSE:RRC, US$9.1Bn), Equitable Resources (NYSE:EQT, mkt cap US$7.0 Bn) and Chesapeake Energy (NYSE:CHK, mkt cap US$24 Bn) highlights the use of horizontal and lateral completions as well as fracture stimulation techniques in the region leading to higher production rates and better recoveries.

Emerald’s strategy is to work together with P&J Resources and funding partners to establish gas development projects with associated “Proven Developed” (PDP, 1P) reserves and ~200 un-drilled locations that can be awarded “Proven Undeveloped” status (PUD, 2P). Once the production has settled and reserves estimated the well package may be onsold with un-drilled locations to regional utilities.

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Drilling Program

P&J Resources as Operator anticipates completing the first Kentucky well this week, following which they will commence drilling the first West Virginia well.

Emerald is in advanced discussions with several parties in relation to funding a long term drilling program. P&J are in the process of permitting additional drilling locations.

Palito Blanco Project, Duval and Jim Wells Counties, Texas (Emerald earning 15% Working Interest; Operator: Oso Exploration)

The Palito Blanco Prospect is located in the South Texas Basin within Duval and Jim Wells Counties some 120 miles south of San Antonio. Unfortunately, recent completion attempts from the various sand horizons at the Jamie Garcia #2 well have produced mainly formation water with little or no gas.

The well has been shut by the operator Oso Exploration pending a re-evaluation of all well data. A third party is considering re-entering this well and attempting a recompletion in the lower sand zones.

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NW Alice
Discovery
Palito Blanco
Discovery
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Figure 1: Regional trend map showing Palito Blanco and NW Alice projects in close proximity on Yegua trend in Duval and Jim Wells Counties Texas, surrounded by producing fields.

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North West Alice, Jim Wells County, Texas (Emerald 10% Working Interest; Operator: Noble Energy Inc.)

Noble Energy has advised that the 3D seismic survey over the NW Alice project Area of Mutual Interest (AMI) has been completed. The seismic data will then to be processed and interpreted by the operator. Initial work is being concentrated around the RJ Hunter #1 discovery well drilled in March, 2007.

The seismic data will further enhance and delineate the structure to enable better understanding of the fault trends to identify future well locations. It is anticipated that a

new well will be drilled in the third quarter of 2008.

This continues to be Emerald’s key project in the USA with potential 7 BCF gas and 175,000 barrels condensate resources net to Emerald.

Project Status: awaiting seismic interpretation and recommendation for appraisal well / development. A sidetrack and recompletion of the RJ Hunter #1 well is also anticipated.

Greenbush Project, Ward & Renville Counties, North Dakota (Emerald 15% Working Interest; Operator: Golden Eye Resources)

Recent lease acquisition activity around Greenbush indicates that a Bakken shale oil play is emerging in the area.

A well to test the deeper Devonian-aged pinnacle reef, will also evaluate the overlying Bakken shale potential. It produces high quality oil from several parts of the Williston Basin including Montana,

North Dakota and SE Saskatchewan across the USA/Canadian border. Both prospects could have up to 1 million barrels potential oil resources and will be evaluated by one well

Project status: Emerald is currently awaiting a recommendation from the operator as to the forward drilling program planned for July, 2008.

Steamboat Prospect, Jim Hogg County, Texas. (Emerald 25% Working Interest)

The Steamboat prospect has Wilcox sand targets with a potential resource of 30-100 BCF gas. A four-party consortium (Emerald 25%) are farming out a 3-D seismic survey and one well possibly in Q4, 2008. Discussions are currently underway which could involve re-entering and testing an old well on the prospect.

Project status: The four party consortium is seeking a substantial carried working interest in this work program, and due diligence is underway by a potential farminee partner.

New Projects – USA

The Company continues to review and assess several new oil and gas exploration project opportunities in the USA which have been sourced through management’s extensive industry network.

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AUSTRALIAN PROJECTS

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Figure 2: Canning Basin showing Emerald’s EP104 / R1 (yellow, Emerald 12.75%) and EPA 4/05-6 (green, Emerald 100%) interests, and mapped prospects and leads. The new EP L07-6 & T07-1 (Lacapede Islands) blocks are shown in Yellow. The main feature on both leases is the Pinnacle Fault, the Conduit for much of the previous hydrocarbon production on the Lennard Shelf portion of the Canning Basin.

EP104/R1, Canning Basin WA (Emerald 12.75% Working Interest; Operator: Arc Energy Ltd)

The Stokes Bay 1 well was deepened to test the Nullana “reefal” carbonates. It drilled into a porous and permeable carbonate (bottom hole) and lost circulation in including some 12,000 barrels of drilling fluid into the formation.

Pressure gradient studies indicate that the Nullara reefal carbonates could be hydrocarbon-bearing. So far no actual indigenous formation fluid has been recovered, only drilling fluids which invaded the formation while drilling.

Project Status: It is anticipated that testing will recommence in July/August, 2008.

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EPA 4/05-6 Canning Basin, WA (Emerald 100% Working Interest and operator)

Emerald’s application EPA 4/05-6 lies immediately to the west of the EP104 permits and, is currently proceeding through the Native Title process.

Emerald’s mapping of leads and prospects on EPA 4/05-6 both along and near the Pinnacle Fault has identified several large structures that may host significant accumulations of hydrocarbons, some several times larger than the Stokes Bay prospect, as shown in Figure 2 below.

Emerald believes there is significant potential to discover several similar prospects to Stokes Bay on this large acreage block covering the western extension of the Pinnacle Fault.

Project Status: Native Title negotiations are proceeding.

EP L07-6 & T07-1 (Lacapede Islands) Offshore Canning Basin, WA (Emerald 100% Working Interest and operator)

The Pinnacle Fault is a key structural element between the Fitzroy Sub-Basin and the Lennard Shelf.

It is believed to be the conduit for oil and gas migration from the Fitzroy Sub-Basin into structural and stratigraphic traps on the adjacent Lennard Shelf to the north.

The award of new tenements L07-6 and T07-1 further consolidates Emeralds strategic holdings along the structurally significant Pinnacle Fault zone (PFZ) and its projection offshore.

In view of the successful discovery of Devonian “reefal” reservoir rocks in the Stokes Bay 1 well at EP104/R1, which is to be further tested in May 2008, Emerald believes there is significant potential to discover several similar prospects along the western extension of the Pinnacle Fault (map above) both onshore and offshore.

Project status: Investigating Native Title situation and awaiting possible early award.

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DRILLING PROGRAM

Emerald will begin drilling its Appalachian project shortly and will also continue its exploration program with testing the Stokes Bay#1- well in the Canning Basin during July, 2008. This is to be followed by development drilling anticipated at NW Alice and Greenbush, USA.

Project	Emerald	Emerald attributable	Timing
	Interest	potential resource
		(unrisked)
*Appalachian Basin, Drilling and Operating Agreement to develop up to 90,000 acres in West Virginia and Kentucky USA, Emerald to earn 80% working interest.	80%	TBA	Q2 08
* Stokes Bay #1 (Canning Basin WA) – re-testing well drilled in Nov 07	12.75%	20-40 BCF, condensate potential	Q2 08
* NW Alice (Texas USA) – seismic acquisition, further drilling	10.0%	7 BCF	Q3 08
* Greenbush (North Dakota, USA) - further drilling, possibly 2 wells	15.0%	50,000 – 150,000 BO	Q3 08
* Steamboat (Texas USA) – seismic acquisition then drilling	25% (pre farm out)	18.75 BCF	Q4 08

Corporate

At 31 March 2008 the consolidated entity had $2,151,000 cash on hand.

During the quarter the Company announced a capital raising to raise $2.015M at 9 cents per share with a one-for-one May 08 option, to be completed over two tranches. The shares and options were issued to sophisticated investors, existing shareholders and other clients of Capital Investment Partners Pty Ltd. The first tranche of 4,500,000 shares and 4,500,000 options were issued and allotted on 23 January 2008, with the second tranche subject to shareholder approval issued on 26 February 2008.

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The Company made the following announcements during the quarter and up to the date of this quarterly report:

Date Announcement Details 30-04-08 90,000 ACRE GAS DEVELOPMENT PROJECT, KENTUCKY/WEST VIRGINIA 28-04-08 Trading Halt 02-04-08 Becoming a substantial holder 14-03-08 PALITO BLANCO PROJECT UPDATE 05-03-08 NW ALICE PROSPECT UPDATE 27-02-08 Half Year Accounts 26-02-08 Notice Pursuant to Section 708A(5)(e) 26-02-08 Appendix 3B - Private Placement 26-02-08 Results of Meeting 25-02-08 Ceasing to be a substantial holder 31-01-08 QUARTERLY ACTIVITIES AND CASHFLOW REPORT 25-01-08 Change of Directors Interest Notice 25-01-08 Notice Pursuant to Sec 708A(5)(e) 25-01-08 Notice of Annual General Meeting/Proxy Form 24-01-08 Appendix 3B 24-01-08 Change of Directors Interest Notice 17-01-08 Placement to raise $2.025 million 15-01-08 Trading Halt 14-01-08 Project update 11-01-08 New Canning Basin Acreage Awards 04-01-08 Response to ASX Price Query

For more information please contact:

Emerald Oil & Gas NL Tel: +618 9482 0510

JOHN HANNAFORD Executive Director – Finance jhannaford@emeraldoilandgas.com

BOB BERVEN Executive Director – Technical bberven@emeraldoilandgas.com

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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 report 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 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.

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Appendix 5B

Mining exploration entity quarterly report

Name of entity

	Name of entity
	Emerald Oil & Gas NL
	ABN 009 795 046 Consolidated statement of cash flows
			31 March 2008
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (9 months) $A’000
		(424) (148) 29		(3,139) (507) 103
		(543)		(3,543)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)
		(543)		(3,543)

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1.13 Total operating and investing cash flows (brought forward)	(543)	(3,543)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Capital Raising Costs 1.20 Other	2,025 (176)	2,025 (362)
Net financing cash flows	1,849	1,663
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	1,306 845 -	(1,880) 4,031 -
	2,151	2,151

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

entities
1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	114
	Nil

1.25 Explanation necessary for an understanding of the transactions The amount above includes payments to directors and to a company associated with John Hannaford. The payments relate to the provision of consulting fees, company secretarial services, accounting and bookkeeping, secretarial services and the provision office accommodation on commercial terms.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows During the quarter the company cancelled 250,000 shares as part of the agreement revising the Pandura project participation terms.

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A

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Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		-	-
		-	-

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	350
	750
Total	1,100

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	2,151	845
	-	-
	-	-
	-	-
Total: cash at end of quarter (item 1.22)	2,151	845

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	T07-1 L07-6	Granted Granted	- -	100% 100%

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (cents)	Amount paid up per security (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	84,619,373	73,226,367
	22,500,000	22,500,000
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-
	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter	58,105,627 661,638 2,000,000 2,000,000 1,500,000 325,000	58,105,627	Exercise price 20 cents 17.68 cents 25 cents 30 cents 25 cents 25 cents	Exercise date 31/05/08 23/01/11 31/12/08 31/12/09 28/02/10 31/12/09
	22,500,000	22,500,000	20 cents	31/05/08
	-	-

EMERALD OIL & GAS NL - MARCH QUARTERLY REPORT 2008

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7.10 Expired during quarter	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes (totals only)	-	-

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement does ~~/does not~~ * give a true and fair view of the matters disclosed.

Sign here: (Director/Company secretary)

Date: 30 April 2008

Print name: John Hannaford

Notes

1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Cash Flow Statements apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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