EMERALD RESOURCES NL — Investor Presentation 2007

Jul 29, 2007

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Emerald Oil & Gas NL

July 2007

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Company Overview

• Perth based company, listed on the ASX in June 2006

• 12.5% interest in ARC operated EP104 Valentine prospect in the Canning Basin (WA)

• Assets in US (South Texas, North Dakota)

• 62.35m shares on issue

• 35.63m listed options

• AUS$3.5 million in cash

• Market cap $11.2m

• ASX codes: EMR & EMRO

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Business Strategy

To establish and develop positions in low risk onshore exploration assets in WA and the US

• Partner with established local operators • Exposure to multiple wells • Advance quickly to producer status

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Directors & Management

• Jeremy Shervington - Chairman Mr Shervington specialises in the laws regulating companies and the securities industry in Australia. Mr Shervington has almost 25 years experience as a lawyer, gained since his admission as a Barrister and Solicitor of the Supreme Court of Western Australia. Mr Shervington has since 1985 served as a director of various ASX listed companies as well as a number of unlisted public and private companies.

• Bob Berven - Executive Director, Technical Mr Berven is a professional Geologist originally from Canada, with over 40 years experience in the petroleum and mining industries in North America and Australasia. Mr Berven is a member of the Australasian Institute of Mining and Metallurgy, the American Association of Petroleum Geologists, the Petroleum Exploration Society of Australia and the Australian Institute of Company Directors.

• John Hannaford - Executive Director, Finance Mr Hannaford is a qualified Chartered Accountant who has worked in various corporate roles within the resources sector in Australia, Asia and Europe. He has been involved with a range of companies including listed oil and gas explorer and producers, oilfield construction groups and various gold and mineral exploration companies. In 2004, Mr Hannaford established Ventnor Capital, to provide specialist corporate advice to companies within the resources industries.

The directors and founders of Emerald own over 27% of the company

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	Drilling Program Q1 08 18.75 BCF 25% (pre farmout) Steamboat*(Texas USA) – seismic acquisition then drilling Q4 07– Q1 08 7 BCF 10.0% NW Alice (Texas USA) – seismic acquisition, further drilling September 07 2.2 BCF 15.0% Pandura (Texas, USA) – Kathleen Marie #2 well September 07 18 BCF 1.2 MMBO 12.75% EP104/R1* – (Canning Basin WA) - Stokes Bay well August 07 3.3 BCF 6.87% Hope – (Texas USA) - first well August 07 125 BCF 12.75% EP104/R1 – (Canning Basin WA) - Valentine well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project	Drilling Program Q1 08 18.75 BCF 25% (pre farmout) Steamboat*(Texas USA) – seismic acquisition then drilling Q4 07– Q1 08 7 BCF 10.0% NW Alice (Texas USA) – seismic acquisition, further drilling September 07 2.2 BCF 15.0% Pandura (Texas, USA) – Kathleen Marie #2 well September 07 18 BCF 1.2 MMBO 12.75% EP104/R1* – (Canning Basin WA) - Stokes Bay well August 07 3.3 BCF 6.87% Hope – (Texas USA) - first well August 07 125 BCF 12.75% EP104/R1 – (Canning Basin WA) - Valentine well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project	Drilling Program Q1 08 18.75 BCF 25% (pre farmout) Steamboat*(Texas USA) – seismic acquisition then drilling Q4 07– Q1 08 7 BCF 10.0% NW Alice (Texas USA) – seismic acquisition, further drilling September 07 2.2 BCF 15.0% Pandura (Texas, USA) – Kathleen Marie #2 well September 07 18 BCF 1.2 MMBO 12.75% EP104/R1* – (Canning Basin WA) - Stokes Bay well August 07 3.3 BCF 6.87% Hope – (Texas USA) - first well August 07 125 BCF 12.75% EP104/R1 – (Canning Basin WA) - Valentine well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project	Drilling Program Q1 08 18.75 BCF 25% (pre farmout) Steamboat*(Texas USA) – seismic acquisition then drilling Q4 07– Q1 08 7 BCF 10.0% NW Alice (Texas USA) – seismic acquisition, further drilling September 07 2.2 BCF 15.0% Pandura (Texas, USA) – Kathleen Marie #2 well September 07 18 BCF 1.2 MMBO 12.75% EP104/R1* – (Canning Basin WA) - Stokes Bay well August 07 3.3 BCF 6.87% Hope – (Texas USA) - first well August 07 125 BCF 12.75% EP104/R1 – (Canning Basin WA) - Valentine well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project
	Project	Emerald Interest	Emerald attributable potential resource (unrisked)	Timing
	*** EP104/R1** – (Canning Basin WA) - Valentine well	12.75%	125 BCF	August 07
	*** Hope** – (Texas USA) - first well	6.87%	3.3 BCF	August 07
	*** EP104/R1** – (Canning Basin WA) - Stokes Bay well	12.75%	18 BCF 1.2 MMBO	September 07
	*** Pandura** (Texas, USA) – Kathleen Marie #2 well	15.0%	2.2 BCF	September 07
	*** NW Alice** (Texas USA) – seismic acquisition, further drilling	10.0%	7 BCF	Q4 07– Q1 08
	*** Steamboat**(Texas USA) – seismic acquisition then drilling	25% (pre farmout)	18.75 BCF	Q1 08

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Australian Projects - Canning Basin WA

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Western Australia Canning Basin

“...more than 131 of the world’s giant and super giant oil and gas fields were discovered in the same geological setting (Palaeozoic source and reservoir) as the Canning. “The Canning may be the world’s least explored Palaeozoic basin with only four wells per 10,000 km2. Similar North American basins have more than 500 wells per km2.” APPEA Flowline Magazine, Issue 15, Dec 2006

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EP104 - Valentine Prospect

• Location: EP104, Canning Basin, WA

• Objectives: All sands within Virgin Hills formation

• Emerald interest: 12.75% WI (earning) by paying 13% of costs to casing point.

• Royalties: 10% Government

• Hydrocarbon potential: 1.09 Tcf Gas (P10) +/- oil/condensate

• No. of wells: ?

• Estimated flow rate: 4-5 mmcfd

• Operator: ARC Energy

• Est. drilling date: August 2007

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Proposed deviated Stokes Bay #1 well to re-enter the Anderson formation

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----- Start of picture text -----

Proposed Valentine
#1 vertical well to
test the 1 TCF
potential in the Virgin
Hills formation
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EP104 - Stokes Bay Prospect

• Location: EP104, Canning Basin, WA

• Objectives: All sands within Anderson formation

• Emerald interest: 12.75% WI Royalties: 10% Government

• • Hydrocarbon potential: Top Deltaic member: 4.3 Mmbo Unit ‘A' Sand: 33.5 Bcf gas Unit ‘B’ Sand: 6.0 Mmbo Unit ‘C’ Sand:

4.3 Mmbo 33.5 Bcf gas 6.0 Mmbo 47.4 Bcf gas

• Operator: ARC Energy

• • Timing: September 2007

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Canning Basin - EPA 4/05-6

• Location: EPA 4/05-6, Canning Basin, WA

• Objectives: All sands within Anderson formation

• • Emerald interest: 100%

• Royalties: 10% Government, 2% other

• Hydrocarbon potential (Eve Rose Prospect): Top Deltaic member: Unit ‘A’ Sand: Unit ‘B’ Sand: Unit ‘C’ Sand:

20 Mmbo 200 Bcf gas 25 Mmbo 250 Bcf gas

• Timing: Q2 2008

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US Exploration South Texas

“Texas has known petroleum deposits of about 8 billion barrels, approximately 1/3 of known US supply. It is the largest gas producing state in the US with onshore production increasing by 258 Bcf (approx. 5%) in 2006.” Natural Gas Year-In-Review, Energy Information Administration, Office of Oil and Gas, March 2007

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Benefits of Doing Business in USA

• Above average market prices for West Texas Intermediate (WTI) crude oil

• Fluid deal flow available in the US for acquiring oil & gas leases

• World’s biggest pool of petroleum industry expertise and established infrastructure

• • Availability of 3D seismic data allowing exploration beneath long established oil and gas fields

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USA: South Texas Project Locations

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US Partners

Noble Energy Noble Energy ranks as one of the largest independent exploration and production companies in the U.S. Noble Energy has had success expanding internationally in non-traditional markets with significant economic potential and long reserve lives. Noble Energy is based in Houston, Texas and employs over 700 people.

Main Energy Main Energy is a US oil and gas exploration and production company that was founded in 1987. Main has owned both operated and nonoperated properties in fourteen US states. Main is interested in property acquisitions and drilling prospects in value of up to $30 million.

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NW Alice Project

• Jim Wells County, South Texas

• • Objectives: Yegua Sands

• • Emerald interest: 10% WI in project

• • Royalties: 23% NRI: 77%

• • Reserve potential: - 100 Bcf gas, 2.5 million bbls condensate

• • Operator: Noble Energy

• • First well drilled March 07, discovered >50 feet of gas interval, technical issues hampered completion and flow testing. Well suspended. Operator to carry out 3-D seismic acquisition prior to next well.

• Follow up well anticipated in Q4 2007.

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RJ Hunter #1 well location

Delta-Gulf well drill in 1954

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Hope Prospect

• Lavaca County, South Texas

• Objectives: Wilcox Sands

• Emerald interest: 6.87% WI in project

• • Royalties: 23% NRI: 77%

NRI: 77%

• Reserve potential:

• 65 Bcf gas, 1 million bbls condensate

• Operator: Main Energy

• • First well anticipated August 07

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Pandura Project

• Webb County, South Texas

• Objectives:

• Primary - Lobo 1, 3 & 6 Sands;

• Secondary: Navarro Formation (Upper Cretaceous)

• Emerald interest: Pay 21.2% for 15.75% WI in first well

• Royalties: 28%

• • Hydrocarbon potential: - Lobo 1 (6400) sand: 7.2 Bcf; Lobo 3 Sand: 2.5 Bcf Lobo 6 Sand: 3.0 Bcf Navarro sand: 3.0 Bcf

• Estimated flow rate: 1-2 mmcfd per day

• • Est. drilling date: Sept 2007

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Pandura Project – location

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Conclusion

To establish and develop positions in low risk onshore exploration assets in WA and the US

• Proven management team

• Targeting specific high potential areas • Focusing on low cost underdeveloped reserves • Leveraging relationships with local operators • Capitalising on strong US commodity prices

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Contacts

• Office Address:

• Level 2, 16 Altona Street, West Perth WA 6005

• Phone: (+61 8) 9482 0510

• Fax: (+61 8) 9482 0505

• Web:

www.emeraldoilandgas.com

• Email:

• Bob Berven - Executive Director, Technical bberven@emeraldoilandgas.com John Hannaford - Executive Director, Finance jhannaford@emeraldoilandgas.com

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Thank you

Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectation reflected in the statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially to those stated, including but not limited to: product price fluctuations, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions, project delay or advancement, approvals and cost estimates.Investors should undertake their own analysis and obtain independent advice before investing in Emerald shares.All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

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