EMERALD RESOURCES NL — Investor Presentation 2011

Jul 24, 2011

22/07/2011

==> picture [595 x 384] intentionally omitted <==

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

Emerald Oil & Gas NL
Investor Presentation
July, 2011
----- End of picture text -----

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.

1

22/07/2011

==> picture [595 x 384] intentionally omitted <==

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

Emerald Oil and Gas - Summary
Exchange /Ticker: EMR
Recent Stock Price: $0.048
Issued Shares: 785m
Options: 263m
Market Cap: $38m
Cash: $8m
Debt: None
Assets/Projects:
1. Green River Basin Shale Oil & CBM (USA : Colorado/Wyoming)
45% interest in GRBJV – 60,000 [+] net (GRBJV) lease acres
covering Niobrara Shale Oil play, 500Mcfd CBM production, 29 km
gas gathering pipeline & gas production facilities
2. Appalachian Gas (USA : Kentucky)
75% interest in KEP – 2500 lease acres, 29 existing wells, 200Mcfd gas production, 13 km
gas gathering pipeline, gas conditioning facilities
3. NW Alice Onshore GOM Exploration (USA : Texas)
35% interest in 2500 lease acres covered by 27 mi [2] 3D seismic survey – shallow oil/gas
4. Canning Basin Offshore Exploration (Australia : WA)
100% interest in 9600 km [2] offshore exploration permits
----- End of picture text -----

==> picture [595 x 308] intentionally omitted <==

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

EMR Green River Basin (GRB) Acquisition
Acquired 45% interest in GRBJV from New Frontier Energy Inc for
$10m cash and 125m EMR shares:
Share Price Market Cap Shares
16 Feb Pre-deal $0.024 $6.5m 270m
17 Feb MOU announced $0.040 $10.8m
30 Mar Capital Raising @ $0.05 announced $0.045 $12.2m
2 May Transaction closed $0.052 $40.8m 785m
EMR Share
Price GRB Transaction Closed
Announced
Capital Raising @ $0.05
Announced NFE MOU
----- End of picture text -----

2

22/07/2011

==> picture [595 x 308] intentionally omitted <==

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

ASX Listed US Shale Players
Cretaceous Interior Seaway
DJ Basin
Niobrara
Green River Basin
Niobrara
Eagleford Shale
Modified from Roberts and
Kirschbaum1995
----- End of picture text -----

==> picture [595 x 106] intentionally omitted <==

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

Comparison of Shale Oil Pays
----- End of picture text -----

==> picture [595 x 269] intentionally omitted <==

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

Buck Peak Field Nolan #1 Slater Dome Field
IP 480 BOPD Drilled with Green River Basin D J Basin, Blake #33-1
air completed open hole ENTEK GRB, LLC IP 47 BOPD Jake 2-01 Eagle Ford Shale
Recovered > 1.3 MMBO Robidoux 13-15T offset well
DJ Basin 20-30’ of Pay EFS ~ 20-30’ of Pay
Green River Basin 300-500’ Of Potential Pay
Oil Pay Zones
----- End of picture text -----

3

22/07/2011

Niobrara Shale Oil Play Evolution

• DJ Basin Green River Basin

• • Vertical wells 10 to 50 • Vertical wells 10 to 500 bopd bopd

• • EOG horizontal well (Jake • Target Niobrara oil pay 2 - 01H) l ate 2009 – IP 1500 sections several times bopd, 150,000 bbl oil in 6 DJ Basin thicker than DJ months to “prove” the play • Horizontal wells yet to be

• • Several horizontal wells drilled to “prove“ the play drilled during 2010 Green River Basin •

• Horizontal wells yet to be drilled to “prove“ the play

• Increasing acreage competition as attention turns from DJ Basin to GRB

• Land grab through 2010

• Prospective Niobrara oil acreage now scarce in the DJ Basin

• $1300 per acre paid in

• Fed land sale Feb 2011

• $4800/ac + carry CNOOC’s Chesapeake acquisition Feb 2011

• Aggressive 2011 drilling around EMR acreage

==> picture [595 x 384] intentionally omitted <==

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

GRB 2011 Niobrara Drilling Activity
Planned/Permitted Niobrara wells
Green River Basin
Vertical 19
Directional 5
Horizontal 10
Total 34
North Park Basin
Vertical 4
Green River Basin Directional 10
Horizontal 19
Total 33
North
Park
Basin
Bonanza
HRM Resources, LLC. ProductionCypress Creek
GRB drilling success will drive acreage value up in 2011
----- End of picture text -----

4

22/07/2011

Green River Basin Joint Venture

==> picture [595 x 268] intentionally omitted <==

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

Ownership
55% Entek Energy (Operator)
45% Emerald
Mineral Lease Acreage
80,000 Gross acres
60,000 [+] Net GRBJV acres Green River Basin Outline
30,000 Net EMR acres
Wyoming
Oil and Gas Reserves/Resources
Niobrara shale oil & gas
Part developed CBM field (500Mcfd)
Conventional oil and gas
Infrastructure
29 km gas gathering pipeline
Gas compression
CBM production infrastructure
Colorado
----- End of picture text -----

GRB Niobrara Appraisal

Prospectivity

==> picture [373 x 166] intentionally omitted <==

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

• Niobrara Shale oil & gas, CBM, conventional oil & gas
• 3 Self sourcing hydrocarbon systems in oil window
• Multiple oil zones in 1100 ft thick Niobrara section
Horizontal Well 4 “benches” + fractured intrusives
• Oil and Gas/Condensate flows obtained from Niobrara
shale intervals and Frontier sand in GRBJV wells
Horizontal Well Development Potential
• 250 to 500 horizontal wells (160 to 320 acre well spacing)
• CBM expansion
Horizontal Well
Niobrara section showing carbonate rich
benches encased in oil prone black shale
----- End of picture text -----

2011 Appra sai l Program

• Which oil zones to target for development? Horizontal wells? Vertical wells?

• Frac designs? – Niobrara benches, intrusives, Frontier sands

• Reservoir fluids - oil? gas/condensate?

• Reservoir performance? Naturally fractured igneous intrusives

5

22/07/2011

2011 Niobrara Activity Plans

Objectives:

• Gather technical data to design 2012 horizontal development wells

• Assess Niobrara production potential

• Acquire additional acreage

Appraisal Wells:

• 3 vertical Niobrara wells

• Frac & test up to 3 zones per well

• Trial different frac treatments

• Flow tests to assess individual reservoir performance

• • Comingled production

Production Infrastructure:

• Gas gathering lines

• Central production facilities

• Gas treatment plant

Appraisal Well – Battle Mountain 14-10L

==> picture [595 x 94] intentionally omitted <==

18 Month GRBJV Work Program

	18 Month GRBJV Work Program	18 Month GRBJV Work Program
	2011 (July – Dec) Total EMR GRBJV (45%) 3 Vertical Niobrara wells $6.5 $2.9 Production infrastructure $2.0 $1.0 New acreage acquisition $3.0 $1.4
	$11.5 $5.2 2012 (indicative only) New acreage acquisition $3.0 $1.4 Seismic $3.0 $1.4 Vertical appraisal/Horiz devel wells $24.0 $10.8 CBM Well Workovers $0.5 $0.2 Production Infrastructure $5.0 $2.3
	$35.5 $16.1 Total 18 Month GRBJV Program $50.0 $22.5

6

22/07/2011

Premium Shale Oil Acreage Valuations In US Capital Markets

• Investors willing to assign strong valuations for undeveloped resource acreage in high profile shale oil plays (Niobrara, Bakken, Eagleford, Permian, Utica)

• • Institutions willing to pay $/acre premium based on intangible acreage value and future reserves to fund drilling and additional acreage acquisition (blind pool financing)

• • Valuations range from $2000-$4000 EV/Acre in US markets

==> picture [595 x 188] intentionally omitted <==

ASX Listed US Shale Players Valuation 8 July 2011

==> picture [595 x 121] intentionally omitted <==

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

EMR ETE SGY SSN SEA EKA TXN AUT
Bakken/ Bakken/
Shale Play Niobrara Niobrara Kreyenhagen Eagleford Eagleford Eagleford
Niobrara Niobrara
Williston/ Williston/
Location GRB GRB San Joaquin Texas Texas Texas
GRB & DJ DJ
Net Acres 27,000 33,000 10,000 35,200 23,600 6,236 5,900 15,600
Share Price 0.045 0.18 0.09 0.14 0.85 0.29 0.64 3.30
Shares 785 511 345 1732 277 237 243 410
Mkt Cap 35.3 91.9 31.1 242.5 235.2 68.7 155.2 1352.6
EV 27.3 71.9 * 22.1 183.5 215.2 58.7 141.2 1277.6
EV/Acre $1 013, $1 301, $2 208, $5 212, $9 119, $9 418, $23 937, $81 896,
----- End of picture text -----

• Niobrara EV only

7

22/07/2011

Immediate Plans

Work closely with ETE as partner in the GRBJV

• Agree strategy to deliver max value from current assets

• Consolidate and expand GRB position with additional acreage

• Develop & execute 2011 field activity program

• Plan 2012 horizontal/vertical development program

Explore cooperative value synergies with ETE

• Company interests and capital requirements aligned in GRBJV

• Maximise value of future dealings with combined 100% interest

• Access premium valuation opportunities in global capital markets

==> picture [595 x 375] intentionally omitted <==

8