EMERALD RESOURCES NL — Investor Presentation 2008

May 6, 2008

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Emerald Oil & Gas NL

Appalachian Basin Gas Producer & Reserve / Resource Developer

May 2008

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Company Overview

• Perth based company, listed on ASX in June 2006 • New major US Appalachian Gas Development project – 90,000 acres in Kentucky and West Virginia – 3 conventional gas horizons – Deeper Marcellus & Knox shale potential – 50+ wells per year drilled and completed – 80% working interest – Third party MOU to provide up to US$25M funding • Exploration Assets in Australia & US

• 84.85m shares on issue (11m in escrow until June 08)

• • 58.13m listed options ($0.20; May 31, 08)

• • $2.0 million cash

• Market cap $12.7m (undiluted @ 15 cps)

• • ASX codes: EMR & EMRO

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A New Growth Strategy

• Development of production and reserve / resource base via 50 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 high 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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Appalachian Basin – Largest USA onshore potential

• Oldest producing basin in U.S.

• Long-life gas reserves

• • Huge potential

• • Proximity to markets

• Renewed Interest

• • Increased infill and deeper drilling and horizontal wells

• • New Frac Technologies

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Appalachian Basin, USA

West Virginia Acreage

Kentucky Acreage

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P&J Resources 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 surrounding PUDs

• • 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

• TICO price currently US$11.00 per Mcf.

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Spacing unit
Well
Well
• Each P & J well
earns acreage
within 4,000ft
PUD
radius spacing
unit (8,000’ dia)
•
Includes 4x
4,000ft
Well deep locations
PUD PUD plus PUDs
•
PUD’s
included in
PUD
reserve estimate
Well
Well
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Infrastructure (P&J)

• 2 new amine plants installed (Ky. and W.V.)

• • 4 compressors

• Completion May 08

• No cost to Emerald

• Transmission costs approx $0.60/Mcf

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

• All gathering lines in place

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New Compressor (P.&J. Owned)

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Existing production

• Shallow wells

• Long life, +60 yrs!

• Offset locations available • Deeper horizons untapped

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DTI W. Virginia Acreage Kentucky Acreage

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Drilling program & Funding

• P&J providing 2 rigs for continuous drilling program

• Emerald to commit to 50 well program

• Emerald to drill mix of

– Shallow

– Deep vertical

– Deep horizontal

– Shale (vertical & horizontal)

• Re-works

• MOU signed with US investment fund Avanti to contribute up to US$25M to drilling

• Avanti to earn half of Emerald’s working interest for payment of 100% of the drilling costs.

• Other non-dilutionary funding avenues being evaluated

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Greenbush Project North Dakota

Location:

Ward & Renville Counties North Dakota

Objectives:

Well depth: Emerald interest:

Primary: Sherwood & Mohall Formation Carbonates Secondary: Kisbey sandstone & Devonian Reefal Carbonates, Bakken Shale (fractured) 6200+ FT (MISS) 9000+ FT (DEV)

Earned 15% WI

Royalties: Hydrocarbon Potential:

20.00% (approx 9,000 acres under lease)

– Bakken 63 MMBO (OOIP), 4.5MMBO + 6 BCF gas recoverable – Reef +/- 1 MMBO recoverable

Timing:

3-D Seismic interpreted; – 2[nd] well Q3 2008 (Deep - Bakken) – – – 3[rd] well Q3 2008 (Shallow oolite mound)

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Greenbush Project North Dakota

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NW Alice Project, South Texas

• 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 in two intervals, technical issues hampered completion and flow testing. Well suspended. 3-D seismic completed, interpretation underway.

• Follow up well anticipated in July / August 2008.

• • Possible sidetrack and recompletion of RJ Hunter #1 well in July/August, 2008.

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RJ Hunter #1 well location

Delta-Gulf well drill in 1954

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Australia - Canning Basin Acreage

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Stokes Bay – 1 well, EP104
Stokes Bay #1 well was
deepened to the Nullara
formation at 2,755m.
Further testing July /
Aug 08.
Valentine #1 vertical
well tested the Virgin
Hills formation. P & A.
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EP104 - Stokes Bay Prospect

• Location: EP104, Canning Basin, WA

• Objectives: All sands within Anderson formation / Nullara Carbonates

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

• • Hydrocarbon potential:

Top Deltaic member: Unit ‘A' Sand: Unit ‘B’ Sand: Unit ‘C’ Sand:

4.3 Mmbo

33.5 Bcf gas 6.0 Mmbo 47.4 Bcf gas

• Operator: ARC Energy

• Valentine 1 – Drilled Sept 07 - dry hole

• Stokes Bay 1 - Drilled Oct 07 – Testing Reefal Nullara Carbonates, in July / August 2008.

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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

• 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

• Canning Basin: EP6/07-8 , IT07-8 and application for W07-12

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	Drilling Program July 08 Bakken – 0.5 MMBO 0.5 Bcf Reef– 0.15 MMBO 15% Greenbush*(N Dakota USA) - Deep Bakken well - Shallow reef well First well (acquired) hooked up Deep well May 08 Commence ~50 well program upon funding Approx 0.4 Bcf per well 80% Appalachian Development – continuous drilling upon funding July / Aug 08 18 BCF 1.2 MMBO 12.75% EP104/R1 – (Canning Basin WA) - Stokes Bay well testing Q3 - 08 7 BCF 175,000 BO 10.0% NW Alice* (Texas USA) –drilling second well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project**	Drilling Program July 08 Bakken – 0.5 MMBO 0.5 Bcf Reef– 0.15 MMBO 15% Greenbush*(N Dakota USA) - Deep Bakken well - Shallow reef well First well (acquired) hooked up Deep well May 08 Commence ~50 well program upon funding Approx 0.4 Bcf per well 80% Appalachian Development – continuous drilling upon funding July / Aug 08 18 BCF 1.2 MMBO 12.75% EP104/R1 – (Canning Basin WA) - Stokes Bay well testing Q3 - 08 7 BCF 175,000 BO 10.0% NW Alice* (Texas USA) –drilling second well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project**	Drilling Program July 08 Bakken – 0.5 MMBO 0.5 Bcf Reef– 0.15 MMBO 15% Greenbush*(N Dakota USA) - Deep Bakken well - Shallow reef well First well (acquired) hooked up Deep well May 08 Commence ~50 well program upon funding Approx 0.4 Bcf per well 80% Appalachian Development – continuous drilling upon funding July / Aug 08 18 BCF 1.2 MMBO 12.75% EP104/R1 – (Canning Basin WA) - Stokes Bay well testing Q3 - 08 7 BCF 175,000 BO 10.0% NW Alice* (Texas USA) –drilling second well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project**	Drilling Program July 08 Bakken – 0.5 MMBO 0.5 Bcf Reef– 0.15 MMBO 15% Greenbush*(N Dakota USA) - Deep Bakken well - Shallow reef well First well (acquired) hooked up Deep well May 08 Commence ~50 well program upon funding Approx 0.4 Bcf per well 80% Appalachian Development – continuous drilling upon funding July / Aug 08 18 BCF 1.2 MMBO 12.75% EP104/R1 – (Canning Basin WA) - Stokes Bay well testing Q3 - 08 7 BCF 175,000 BO 10.0% NW Alice* (Texas USA) –drilling second well Timing Emerald attributable potential resource (unrisked) Emerald Interest Project**
	Project	Emerald Interest	Emerald attributable potential resource (unrisked)	Timing
	*** Appalachian Development** – continuous drilling upon funding	80%	Approx 0.4 Bcf per well	First well (acquired) hooked up Deep well May 08 Commence ~50 well program upon funding
	*** Greenbush**(N Dakota USA) - Deep Bakken well - Shallow reef well	15%	Bakken – 0.5 MMBO 0.5 Bcf Reef– 0.15 MMBO	July 08
	*** EP104/R1** – (Canning Basin WA) - Stokes Bay well testing	12.75%	18 BCF 1.2 MMBO	July / Aug 08
	*** NW Alice** (Texas USA) –drilling second well	10.0%	7 BCF 175,000 BO	Q3 - 08

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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

• Project level funding 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:

• 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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