EMERALD RESOURCES NL — Investor Presentation 2008

Nov 27, 2008

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Emerald Oil & Gas NL

Emerging Appalachian Basin Gas Producer

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November 2008

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Company Overview

• Perth based company, listed on ASX in June 2006 • Gas Develo p ment Pro j ect in A pp alachian Basin , USA • Exploration Assets in Australia & USA • 115.48m shares on issue • 6 . 48m unlisted options ($0 . 25/$0 . 30; Dec 08/09) • $5.0 million cash

• Market cap $6.9m (undiluted @ 20 cps)

• ASX code: EMR

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The New Emerald Oil & Gas

• Strategy -

• I mp ementat on - l i

• • Development of production and reserve / resource base via multi well Appalachian basin drilling programme in 2008/09

• • Proven undeveloped Reserve status (PUD) for undrilled locations (shallow and deep) surrounding each well.

• • Staged divestment of developed reserves/resources to industry participants at current firm market prices.

• • Continual drilling program fully funded through US subsidiary. +1000 potential wells.

• • Upside through use of horizontal drilling, new frac techniques and emerging Marcellus shale play

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USA Appalachian Basin,

W es t Vi rg n a i i Acreage

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• Oldest producing basin in U.S.

• Long-life gas reserves

• Huge potential

• Renewed Interest

• Increased infill and deeper drilling and horizontal wells • New fracing technologies

Kentucky Acreage

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P&J Resources – who are they?

• Agreement:

• Access to 45,000 acres in Eastern Kentucky, 45,000 acres in western West Virginia under 10 year agreement (AMI)

• Continuous drilling to earn 80% working interest

• Turnkey well pricing

• Each unit earned includes 4,000 foot radius spacing including several locations and surroundin g Proven Undevelo p ed Reserves ( PUD )

• Existing gathering line system owned by P&J including various compressors and two Amine plants to remove impurities.

• Access to El Paso, Jefferson and Chesapeake major regional infrastructure

• Price premium due to high BTU content and proximity to markets

• • Appalachian price currently US$7.00 per Mcf.

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EMR Infrastructure (P&J)

• 2 new amine plants i nsta ll e d W . V . d (K y. an )

• • 4 compressors

• • 2 new pipelines

• • Completion Q4 08

• • No cost to Emerald

• Transmission costs $1 . 00/M c f

• Links to major lines operated by El Paso, Colombia , Jefferson , Chesapeake, Equitable

• • All gathering lines in place b mid Dec 2008 y

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Appalachian Pipeline Infrastructure
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•
Amine plants installed
-
Kentucky
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DTI W. Virginia Acreage Kentucky Acreage

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-
Fixed cost gathering
fee TGPL – Transcontinental Gas Pipeline
DTI – Dominion Transmission
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TCO – Columbia Gas Transmission
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Drilling program & Funding

• P&J p rovidin g 2 ri g s for continuous drillin g p ro g ram

• 6 wells ready (KY), 2 wells (WV)

• Emerald to commit to multi well program

• Emerald to drill mix of – Shallow – Deep vertical – Deep horizontal – Shale (vertical & horizontal) – Re-works • - Other non dilutionary funding avenues being evaluated

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	rng rogram Project Emerald Emerald Timing	rng rogram Project Emerald Emerald Timing	rng rogram Project Emerald Emerald Timing	rng rogram Project Emerald Emerald Timing	rng rogram Project Emerald Emerald Timing
	Project	Emerald	Emerald	Timing
		I t t **n eres **	tt ib t bl a r u a e potential resource (unrisked)
	*** Appalachian Development** – continuous drilling upon	80%	Approx 0.4 Bcf per well	8 wells completed & hooked up Commence multi - well program
	funding			upon funding
	*** Greenbush**(N Dakota USA) - Horizontal Bakken well	3.75% (current)	TBC	Q1 09
	*
	NW Alice (Texas USA) – drilling second well	10 0% .	7 BCF 175,000 BO	Q1 09

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Conclusion

To develop cashflow and reserves / resources in producing on-shore US Appalachian basin and establish positions in low risk onshore exploration assets in WA and the US

• High potential gas development play

• • Developing cashflow + resource/reserve base

• Pro j ect level fundin g non-dilutive

• • Capitalising on strong commodity prices, existing infrastructure and proximity to markets

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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: B o b B erven - E xecu ti ve Di rec or, ec t T h n ca i l 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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Appendix - Existing ongoing development projects:

• Greenbush Project – North Dakota • NW Alice Project - South Texas • Stokes Ba Pros ect – EP 104 y p • Canning Basin - EPA 4/05-6

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Greenbush Project North Dakota Location: Ward & Renville Counties North Dakota Objectives: Bakken Shale (fractured) at 6000 feet Well depth: Horizontal @ 6000 feet Emerald interest: 3.75% ( APO ) Royalties: 20.00% (approx +9,000 acres under lease) – Hydrocarbon Potential: Bakken 63 MMBO (OOIP), 4.5MMBO + 6

20.00% (approx +9,000 acres under lease) – Bakken 63 MMBO (OOIP), 4.5MMBO + 6 BCF recoverable gas

Farmed out Bakken to Encore Operating LLP; Drilling horizontal Bakken well in Q1 09

Timing:

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South Texas NW Alice Project,

• Jim Wells County, South Texas

• • Ob j ectives: Ye g ua Sands

• Emerald interest: 10% WI in project • Royalties: 23% NRI: 77% • Reserve potential: - 100 Bcf gas, 2.5 million bbls condensate • Operator: Noble Energy • Fi rst we ll d r ill e d M arc h 07 , scovere di d > 50 f eet o gas n two f i intervals, technical issues hampered completion and flow testing. Well suspended. 3-D seismic completed, interpreted. • F o ll ll an ti i t d i n Q1 2009 . ow up we c pa e • Possible sidetrack and recompletion of RJ Hunter #1 well

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NW Alice Project area
showing location of RJ
Hunter #1 well offsetting the
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D e ta- l G u lf 1954 we ll . arge L
anticline structure under
lease with potential for
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RJ Hunter #1 well location

• Delta Gulf well drill in 1954

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EP104 - Stokes Bay Prospect

• Location: EP104, Canning Basin, WA

• Ob j ectives: All sands within Anderson formation / Nullara Carbonates

• 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: 47.4 Bcf gas

• Operator: ARC Energy

• • Stokes Bay 1 - Drilled Oct 07 – Lost 12 , 000 bbls drilling fluid into porous Reefal Nullara Carbonates, tests have so far not recovered lost fluids and are inconclusive. Awaiting operator recommendation.

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Canning Basin - EPA 4/05-6

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

• • Objectives: All sands within Anderson formation / Nullara Carbonates

• E mera ld i n eres : t t 100%

• • Royalties: 10% Government, 2% other

• • Hydrocarbon potential (Eve Rose Prospect): Top Deltaic member: 20 Mmbo Unit ‘A’ Sand: 200 Bcf gas Unit ‘B’ Sand: 25 Mmbo U n it ‘C’ S an d : 250 B c gas f

• Currently negotiating Native Title

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Cann ng as n -i B i Offshore

EP6/07-8 IT 07-8 (Lacapede Islands)

• Objectives: All sands within Anderson formation and Nullara Reefal Carbonates

• Emerald interest: 100%

• Royalties: 10% Government , 2% other

Application 135L/07-8 (offshore)

• Objectives: All sands within Anderson formation and Nullara Reefal Carbonates

• Emerald interest: 100%

• Royalties: 10% Government, 2% other

Numerous prospects defined from old seismic along westerly extension (offshore) of Pinnacle Fault Zone (PFZ) a key structural element in the Canning Basin

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C i B i Onshore and Offshore
ann ng as n –
Emeralds current tenement holdings in the Canning Basin are:
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	E l ti P it / R t ti E ld N t xp ora on erm e en on Licence / Applications mera e Working Interest	P it Si erm ze (approx sq km) 700 290
	EP 104 (R5) Retention Lease R1 12.75% 1275%
	. Application L98-1 (option) Application EP 4/05-6 Application L07-6 Alii T071 12.75% 100% 100% 100%	200 4,600 200 400
	ppcatons - Application 13SL/07-8 (W07-12) 100% Total	8,000 14,390
E ld h d h t i ti k i mera as secure suc an ex ens ve con guous pac age cover ng several hundred kilometres of the Pinnacle Fault. Emerald will assess the optimal means to fund exploration programs following award of the permits after completingnative title negotiations.

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Canning Basin acreage

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