EMERALD RESOURCES NL — Interim / Quarterly Report 2007

Jan 30, 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

31 January, 2008

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

QUARTERLY ACTIVITIES AND CASHFLOW REPORT - DECEMBER 31, 2007

Please find attached the Quarterly Activities Report and Appendix 5B Quarterly Cashflow Report for the quarter ended December 31, 2007.

Yours sincerely,

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JOHN HANNAFORD Director – Finance

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ASX Release

31 January 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:

66,619,373 Shares (EMR) 40,105,627 Listed options (EMRO) 6,486,639 Unlisted options

Market Capitalisation: Undiluted $6m (9 cents)

Cash on hand 31.12.07 $0.85m

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 DECEMBER 2007

Highlights

Canning Basin WA

• Emerald’s New Blocks – Emerald has expanded its strategic tenement holdings in the Canning Basin, WA (onshore and offshore) with the successful application for EPL07-6 and T07-1 (Lacapede Islands). The award of these tenements further consolidates Emeralds strategic holdings along the structurally significant Pinnacle Fault Zone (PFZ) and its projection offshore.

• Stokes Bay #1 - This well drilled to a total depth of 2589 metres has successfully discovered high quality porous and permeable Devonian-aged “reefal” reservoir rocks in the Nullara carbonate sequence. Described recently as the “Holy Grail” of reef exploration in the Basin, it has opened up a whole new exploration play along the Lennard Shelf portion of the Canning Basin. The operator ARC Energy will resume production testing of the Nullara and the overlying Anderson Formation sandstone which is oil-bearing once the wet season is over, probably mid-late April, 2008. Several ways of evaluating the Nullara carbonates are being investigated.

USA

• Palito Blanco Gas Discovery , Jim Wells County Texas. The operator Oso Exploration has recently completed the Y-14 sandstone from 7,326 to 7,330 feet. The well is flowing dry gas at approximately 300-500 mcf per day.

• Hope Prospect – The Main Energy Marek # 1 well in Lavaca County Texas came in structurally high, however only residual hydrocarbons were present in the target Wilcox sands. This was interpreted to be due to lack of good seal probably related to nearby faulting.

EMERALD OIL & GAS NL – DECEMBER QUARTERLY REPORT 2007

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Overview

The Board of Emerald Oil & Gas NL is pleased to present its quarterly activities report for the quarter ended 31 December 2007.

During the quarter the Company continued its active exploration drilling program in the USA that commenced in March 2007. The Company participated in 2 wells in USA of which the Jaime Garcia Gas Unit #2 well discovered gas bearing sands from several Yegua zones. This well has recently being completed from the Y-14 sand and is flowing dry gas at 300-500 mcf per day. The Marek 1 well at the Hope prospect was spudded on 30 October 2007 and was plugged and abandoned on 18 November. The well came in structurally high but lacked “seal”, encountering only residual hydrocarbons.

In the Canning Basin, Western Australia the Company completed its farm in to earn 12.75% interest in the EP104/R1 JV by participating in the Valentine 1 exploration well. The follow up 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 next April after the Kimberley region wet season.

Emerald management is somewhat disappointed with the results of its multi-well drilling program in the USA and the Canning Basin. The Company is looking forward to positive results during the next 3-6 months at Stokes Bay-1 (possible discovery), NW Alice (discovery/appraisal) and Palito Blanco (discovery/production). Several new projects in the USA and elsewhere are also currently being evaluated.

USA Projects

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. It is located within the prolific Yegua multiple-sand, gas-producing fairway within Braman, Four Seasons and Palito Blanco fault – separated fields, which to date have produced 45+ BCF gas and 1.0+ million barrels of condensate. Approximately 400 acres are currently under lease within a larger AMI. The operator Oso Exploration has recently perforated the Y-14 zone from 7,326 to 7,330 feet, which is the main zone of interest. This was the main producing zone Jaime Garcia # 1 well and the Jaime Garcia # 2 well is 7-10 feet

structurally high this old well where the casing collapsed. The well is currently flowing dry gas at approximately 300-500 mcf per day.

Structurally there appears to be room for 3- 4 development wells around the original Jamie Garcia #1 well. Total potential resources are approximately 10 BCF gas and 100,000+ barrels of condensate. Further development potential might emerge from the larger AMI (area of mutual interest) with Oso Exploration.

The well is producing into a nearby pipeline.

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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.
----- End of picture text -----

North West Alice, Jim Wells County, Texas

(Emerald 10% Working Interest; Operator: Noble Energy Inc.)

The Operator has advised that the 3D seismic survey over the NW Alice project Area of Mutual Interest (AMI) will be completed in February 2008. The seismic data will then to be processed and interpreted by the operator. Drilling recommendations will follow for the second quarter of 2008.

The size of the structure as currently mapped from 2-D seismic and well control as stated previously could host up to 100 BCF gas and 2.5 million barrels of condensate.

The seismic data will further enhance and delineate the structure to enable better

understanding of the fault trends to identify future well locations. This continues to be Emerald’s key project in the USA with 7 BCF gas and 175,000 barrels condensate potential resources net to Emerald following the discovery at the RJ Hunter # 1 well in March 2007.

It is anticipated the Operator will undertake an appraisal well in Q2 of 2008.

Project Status: awaiting completion of seismic survey and processing and interpretation prior to recommendation for appraisal well / development.

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 3 –

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Hope Prospect, Lavaca County, Texas

(Emerald 6.87% Working Interest; Operator: Main Energy)

The Hope Prospect is located in the South Texas Basin in Lavaca County, Texas, 80 miles east southeast of San Antonio. It is on trend with prolific Upper and Lower Wilcox Sand production. Approximately 1,300 acres are currently under lease and the proposed total depth is a 10,500 feet well which is a “non-pipe” test.

Reserve Potential

Seismic data shows a 50-foot structural gain to a previous well, yielding potentially 65 feet of hydrocarbon column. Reserve potential for the Hammon sand is 25 BCF. Potential resources for the Roeder sand at Hope Prospect exceed 40 BCF. Total resources for Roeder and Hammon sand is 65 BCF of gas.

The well reached total depth of 10,517 feet on 14 November 2007 encountering reservoir sands as per pre-drill expectations. Analysis of all data indicated only residual hydrocarbons were left in the target Wilcox sands sequence. The structure drilled did not have an effective seal and the hydrocarbons have leaked out through faults or associated fracture zones. A secondary target Yegua Sand from 4,749 to 4,751 feet contained gas but was too thin to be economically completed. The operator Main Energy plugged and abandoned the well in November 2007.

Project status: Plugged and abandoned. No further exploration planned.

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

A review of the 3-D seismic data has revealed that two excellent oil prospects still exist within the acreage under lease.

One prospect is a conventional oolite mound build up within the Sherwood formation while the second is a deeper Devonian-aged pinnacle reef. This deeper test will also evaluate the overlying Bakken shale potential which 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.

Project status: Emerald is currently awaiting a recommendation from the operator as to the forward drilling program to test these two oil prospects, anticipated in Q2 2008.

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

The Steamboat prospect has Wilcox sand targets with potential reserves of 30-100 BCF gas. A four-party consortium (Emerald 25%) has secured lease options covering approximately 1,800 – 2,000 acres over this prospect. The consortium is farming out a 3-D seismic survey and one well possibly in Q4, 2008.

Project status: The project will be marketed at the NAPE Conference in Feb 2008 in Houston, Texas to potential investors to fund the 3D seismic survey and one well. The four party consortium is seeking a substantial carried working interest in this work program.

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 4 –

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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.

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 L076 & 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.

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007

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EP104/R1, Canning Basin WA

(Emerald 12.75% Working Interest; Operator: Arc Energy Ltd)

VALENTINE 1 WELL

Valentine 1 is located approximately 20 kilometres north of the township of Derby in northwest Western Australia’s Kimberley region. The primary reservoir objective was the Late Devonian-aged Virgin Hills Formation.

ARC Energy drilled Valentine 1 vertical well to a total depth of 3,430 metres in September – October 2007.

The well intercepted very strong gas shows and indications of porosity in the Anderson and Laurel Formations down-dip from the target interval in the Stokes Bay #1 well. This is an extremely positive indication for Stokes Bay #1 which was targeted to intersect these objectives within closure, some 90 meters up-dip from the Valentine #1 intersection.

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Figure 3: The Century 18 rig on location at the EP104/R1 project in the Canning Basin of Western Australia during drilling of the Valentine 1 and Stokes Bay 1 wells.

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 6 –

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EP 104/R1 STOKES BAY 1 WELL

The Stokes Bay 1 well was drilled as a sidetrack from the Valentine 1 wellbore after the completion of drilling operations at Valentine 1. Stokes Bay 1 was a test of the extent and reservoir development of the gas accumulation intersected by the Point Torment 1 well drilled in 1992. It was drilled as a deviated well with a final total depth of 2,777 metres below 7 inch casing.

The revised total depth was to test the gas potential of the Nullara reefal carbonates following gas shows in Valentine-1 well.

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: As previously announced the operator has suspended swabbing operations until the end of the wet season, anticipated to be April 2008 at the earliest.

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 covers the west extension of the Pinnacle Fault, the location of much of the previous production in the Canning Basin. This permit application is currently proceeding through the Native Title process. The permit area contains several structural “look-alikes” to the Stokes Bay Prospect (in EP-104) along the Pinnacle Fault Zone. A discovery at Stokes Bay would add considerably to the exploration potential of this permit which will be held 100% by Emerald (subject to Native Title).

hydrocarbons, some several times larger than the Stokes Bay prospect, as shown in Figure 2 below.

In view of the successful discovery of porous, permeable “reefal” reservoir rocks in the Stokes Bay 1 well, Emerald believes there is significant potential to discover several similar prospects on this large acreage block covering the western extension of the Pinnacle Fault.

Project Status: Native Title negotiations are proceeding.

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

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 7 –

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

Emerald was recently notified by the WA Department of Industry and Resources (DoIR) that it has been named preferred applicant for exploration permits L07-6 and T07-1 over the Lacapede Islands, offshore Canning Basin WA. Emerald has accepted the new permits and will now commence Native Title negotiations with the Claimants. The award of these tenements further consolidates Emeralds strategic holdings along the structurally significant Pinnacle Fault zone (PFZ) and its projection offshore. 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 stratigraphical traps on the adjacent Lennard Shelf to the north.

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 April 2008, Emerald believes there is significant potential to discover several similar prospects along the western extension of the Pinnacle Fault (map above).

Project status: Awaiting award

DRILLING PROGRAM

Emerald will continue its exploration program commencing with testing the Stokes Bay#1well in the Canning Basin. This is to be followed by development drilling anticipated at NW Alice and Palito Blanco and at least three exploration wells in the USA.

Project	Emerald	Emerald attributable	Timing
	Interest	potential resource
		(unrisked)
*** 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	Q2 08
*** Palito Blanco(Texas USA)-** Further drilling / development	15.0%	~1.125 BCF	Q2 08
*** Greenbush**(North Dakota, USA) - further drilling, possibly 2 wells	15.0%	50,000 – 150,000 BO	Q2 08
*** Steamboat** (Texas USA) – seismic acquisition then drilling	25% (pre farm out)	18.75 BCF	Q4 08

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 8 –

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Corporate

At 31 December 2007 the consolidated entity had $845,000 cash on hand.

During the quarter the company had its AGM and resolved to cancel 250,000 Emerald shares held by Daytona as part of the revised Pandura participation terms.

After the quarter the Company announced a capital raising to raise $2.015M at 9 cents per share with a one-for-one May 08 options, to be completed over two tranches. The shares and options were to be issued 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 at a general meeting to be held on 26 February 2008.

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

Date	ASX Announcement
24/01/2008	Appendix 3B
24/01/2008	Change of Director’s Interest Notice
17/01/2008	Placement to raise $2.025 million
15/01/2008	Trading Halt
14/01/2008	Project update
11/01/2008	New Canning Basin Acreage Awards
4/01/2008	Response to ASX Price Query
27/11/2007	Results of Annual General Meeting and AGM Presentation
23/11/2007	Stokes Bay Testing Update
19/11/2007	Hope prospect progress report
16/11/2007	PALITO BLANCO PROJECT PRODUCTION UPDATE
15/11/2007	Stokes Bay 1 Testing Update
7/11/2007	Stokes Bay-1 Update
7/11/2007	USA UPDATE-HOPE PROSPECT AND PALITO BLANCO PROJECT
6/11/2007	Stokes Bay 1 update
5/11/2007	Stokes Bay 1 Testing Update
1/11/2007	Stokes Bay 1 Well Update
31/10/2007	FIRST QUARTER ACTIVITIES AND CASHFLOW REPORT
31/10/2007	Hope project update
26/10/2007	Notice of General Meeting/Proxy Form
26/10/2007	Annual Report to shareholders
26/10/2007	PALITO BLANCO GAS DISCOVERY-COMPLETION UPDATE
25/10/2007	Stokes Bay 1 Exploration Well update
18/10/2007	Stokes Bay-1 Exploration Well Update
11/10/2007	Stokes Bay-1 Exploration Well Update
8/10/2007	Change of Director`s Interest Notice
5/10/2007	Palito Blanco Gas Discovery Update
5/10/2007	Appendix 3B
4/10/2007	Valentine-1 Update and Spudding of Stokes Bay-1
3/10/2007	PALITO BLANCO GAS DISCOVERY UPDATE

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007

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2/10/2007	PALITO BLANCO GAS DISCOVERY
1/10/2007	Trading Halt

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

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.

Information in this report pertaining to exploration potential of the Pandura project was compiled by Marv Ginzel, a consultant to Emerald Oil & Gas NL who is a member of the American Association of Petroleum Geologists CPG#26818-3 and the Society of Exploration Geophysicists SEG #4430.

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.

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 10 –

Appendix 5B

Mining exploration entity quarterly report

Name of entity

	Emerald Oil & Gas NL
	ABN 009 795 046 Consolidated statement of cash flows
			31 December 2007
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 (6 months) $A’000
		- (1,642) - - (263) - 7 - - -		- (2,715) - - (359) - 74 - - -
		(1,898)		(3,000)
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)		- - - - - - - - -		- - - - - - - - -
		-		-
		(1,898)		(3,000)

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007 - 11 –

1.13 Total operating and investing cash flows (brought forward)	(1,898)	(3,000)
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	- - - - - (53) -	- - - - - (186) -
Net financing cash flows	(53)	(186)
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	(1,952) 2,797 -	(3,186) 4,031 -
	845	845

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

1.23 1.24	1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			115
			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 onconsolidated assets andliabilities but didnotinvolve cash flows During the quarter the company cancelled 250,000 shares as part of the Pandura participationterms. 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		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.
	During the quarter the company cancelled 250,000 shares as part of the Pandura participationterms.
	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 available $A’000	Amount used $A’000
		-		-
		-		-
	Estimated cash outflows for next quarter
	4.1 Exploration and evaluation 4.2 Development			$A’000
				200
				100
	Total			300
	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)	845		2,797
		-		-
		-		-
		-		-
	Total: cash at end of quarter(item 1.22)	845		2,797

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

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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	62,119,373	50,726,367
	(250,000)	-
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	35,605,627 661,638 2,000,000 2,000,000 1,500,000 325,000	35,605,627	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
	-	-

EMERALD OIL & GAS NL - DECEMBER QUARTERLY REPORT 2007

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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: Date: 31 January 2008 (Director/Company secretary)

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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