EMERALD RESOURCES NL — Investor Presentation 2011

Jul 12, 2011

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

Emerald Oil & Gas NL

Investor Presentation July, 2011

==> picture [792 x 75] intentionally omitted <==

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 a ff ected a v a ri o f v a ri ab l es a n d c h a n in u n de rl in assu m i o n s by ety ges y g pt 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.

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

Emerald Oil and Gas - Summary

Exchange /Ticker: EMR Recent Stock Price: $0.048 Issued Shares: 785m Market Cap: $38m Cash: $8.5m Debt: None

: Assets/Projects

1. Green River Basin Shale Oil & CBM (USA : Colorado/Wyoming) 45% interest in GRBJV - 60,000 net lease acres covering Niobrara Shale Oil play, 500Mcfd CBM production, 29 km gas atherin i eline & as roduction facilities

g g p p g p

2. Appalachian Gas (USA : Kentucky)

• 75% interest in KEP – 2500 net 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 net lease acres covered by 55 mi[2] 3D seismic survey

4. Canning Basin Offshore Exploration (Australia : WA) 100% interest in 9600 km[2] offshore exploration permits

==> picture [792 x 75] intentionally omitted <==

EMR Green River Basin (GRB) Acquisition Acquired 45% interest in GRBJV from New Frontier Energy Inc for $10m cash and 125m EMR shares:

• Approx 60 , 000 net acres mineral leases

• Niobrara shale oil play, CBM and conventional gas

• Existing gas production from partially developed CBM field

• • 18 m il i li l i e p pe ne to gas sa es po nt

• Entek Energy Ltd (ETE) holding corresponding 55% interest and operator

• • Transaction closed 2 May 2011

==> picture [792 x 298] intentionally omitted <==

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

EMR Share
GRB Transaction Closed
Price 785m shares, Mkt Cap $43m
Announced
Capital Raising @ $0.05
Announced NFE MOU
270m shares , Mkt Cap $6 . 8m
----- End of picture text -----

Niobrara Oil Shale Players

==> picture [792 x 512] intentionally omitted <==

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

Cretaceous Interior Seaway
Green River Basin
DJ Basin
Eagleford Shale
Modified from Roberts and
Kirschbaum1995
----- End of picture text -----

Comparison of Shale Oil Pays

Buck Peak Field Nolan #1 Slater Dome Field IP 480 BOPD Drilled with Green River Basin air completed open hole ENTEK GRB, LLC Recovered > 1.3 MMBO Robidoux 13-15T

D J Basin, Blake #33-1 IP 47 BOPD Jake 2-01 Eagle Ford Shale offset well

==> picture [792 x 75] intentionally omitted <==

DJ Basin 20-30’ of Pay

EFS ~ 20-30’ of Pay

==> picture [792 x 75] intentionally omitted <==

Green River Basin 300-500’ Of Potential Pay

Oil Pay Zones

==> picture [792 x 75] intentionally omitted <==

Niobrara Shale Oil Play Evolution

DJ Basin

Green River Basin

• Vertical wells 10 to 50 bopd

• EOG horizontal well (Jake 2-01H) late 2009 – IP 1500 bopd , 150 , 000 bbl oil in 6 months to “prove” the play

• Several horizontal wells drilled during 2010

• Land grab through 2010

• Pros ective Niobrara oil p

• acreage now scarce in the DJ Basin

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

==> picture [211 x 354] intentionally omitted <==

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

DJ Basin
Green River
Basin
----- End of picture text -----

• Vertical wells 10 to 500 bopd

• Target Niobrara oil benches 2x to 5x thi c k er th an DJ + fractured intrusives

• • Horizontal wells to be d r ill e d h e to “prove“ t

• play

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

• $1300 per acre paid in

• Fed land sale Feb 2011

==> picture [792 x 75] intentionally omitted <==

Green River Basin Niobrara Shale Oil

 GRBJV

• 55% Entek Energy (Operator)

• 45% Emerald

• 80 , 000 G ross acres, 60 , 000 N e t

• Niobrara oil and gas

• CBM 500Mcfd + conventional gas

• 29 km gas gathering pipeline

• Production infrastructure

• Niobrara Shale Oil play

• 800 to 1200 ft Niobrara oil section multiple reservoirs

==> picture [351 x 158] intentionally omitted <==

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

Green River Basin Outline
Green River Basin Outline
----- End of picture text -----

==> picture [74 x 18] intentionally omitted <==

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

Wyoming
----- End of picture text -----

• 3 Niobrara “benches”

• Igneous intrusives

 2011 Drilling Program

• 3 vertical Niobrara appraisal wells Multiple zone, frac stimulations ec ti ves:

• Obj

• Gather technical data for horizontal wells in 2012

• Establish Niobrara oil roduction p

==> picture [351 x 93] intentionally omitted <==

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

Colorado
----- End of picture text -----

Development Potential and Key Uncertainties

P tivit S rospec y ummary

• CBM, Niobrara oil & gas, conventional oil & gas

• 3 Self sourcing hydrocarbon systems in oil window

==> picture [276 x 149] intentionally omitted <==

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

Horizontal Well
Horizontal Well
----- End of picture text -----

• M u lti p e o l il zones n i 1100 ft thi c k Ni o b rara sec ti on

• 4 “benches” + fractured intrusives

• Oil and Gas/condensate flows obtained from Niobrara shale intervals and Frontier sand

• Indicative Development Potential : 250 to 500 wells assuming 160 to 320 acre horizontal well spacing

==> picture [79 x 9] intentionally omitted <==

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

Horizontal Well
----- End of picture text -----

Niobrara section showing carbonate rich benches encased in oil prone black shale

Key Development Issues - 2011 Appraisal Program)

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

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

• Reservoir fluids? – black oil , volatile oil , gas/condensate

Naturally racf tured igneous ni trus vesi

• Reservoir performance?

2011 Niobrara Activity Plans

Appraise Niobrara resource , prepare for development drilling & oil production

Objectives:

• Gather technical data to design horizontal wells in 2012

• 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

==> picture [792 x 75] intentionally omitted <==

GRB 2011 Niobrara Drilling Activity

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 342] intentionally omitted <==

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

2 vertical wells
3 vertical wells
6 vertical wells
15 vertical wells
----- End of picture text -----

GRB drilling success highly likely to drive acreage value up in 2011

18 Month GRBJV Capital Requirement

2011 (July – Dec) 3 Vertical Niobrara wells Production infrastructure New acreage acquisition 2012 (indicative only) New acreage acquisition Seismic Vertical appraisal/Horiz devel wells CBM Well Workovers Production Infrastructure Total 18 Month GRBJV Program	Total GRBJV $6.5 $2.0 $3.0 $11.5 $3 0 . $3.0 $24.0 $0.5 $5.0 $35.5 $50.0	EMR (45%) $2.9 $1.0 $1.4 $5.2 $1 4 . $1.4 $10.8 $0.2 $2.3 $16.1 $22.5

Premium Shale Oil Acreage Valuations In US Capital Markets

• Investors willing to assign strong valuations for undeveloped resource acrea g e in hi g h p rofile shale oil p la y s ( Niobrara , Bakken , Ea g leford , 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 [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

==> picture [792 x 75] intentionally omitted <==

ASX Listed US Shale Players Valuation 8 July 2011

EMR ETE SGY SSN SEA EKA TXN AUT Shale Play Niobrara Niobrara Kreyenhagen Bakken/ Bakken/ Eagleford Eagleford Eagleford Niobrara Niobrara Location GRB GRB San Joaquin Williston/ GRB & DJ Williston/ DJ Texas Texas Texas 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 27 3 71 9 22 1 183 5 215 2 58 7 141 2 1277 6 * EV . . . . . . . . EV/Acre $1,013 $1,301 $2,208 $5,212 $9,119 $9,418 $23,937 $81,896**

• Niobrara EV only

==> picture [792 x 75] intentionally omitted <==

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

• E l ti l i ith ETE xp ore coopera ve va ue synerg es w • Company interests and capital requirements aligned in GRBJV

• • Increase asset value through development drilling

• • Maximise value of future dealings with combined 100% interest

• Access premium valuation opportunities in global capital mar k ets

==> picture [792 x 75] intentionally omitted <==