EMERALD RESOURCES NL — Capital/Financing Update 2007

Nov 6, 2007

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PANCONTINENTAL OIL & GAS NL

ASX Release

07 November 2007

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www.pancon.com.au

Stokes Bay-1 Exploration Well Drilling Update

MARKET DATA

ASX: PCL

12 month high: $0.085 12 month low: $0.054 Market cap: $ 25M Cash at bank: $3.9M Issued shares: 444M

PROJECTS

� Australia Onshore Canning Basin Offshore Carnarvon Basin

� Kenya Offshore Lamu Basin

� Malta Offshore Chebba Marin Basin

� Namibia Offshore

DIRECTORS & MANAGEMENT

David Kennedy Chairman

Peter Munachen Finance Director

Barry Rushworth New Ventures Director Ian Cornelius

Non-executive Director

Andy Svalbe Non-executive Director Matthew Battrick General Manager

CONTACT DETAILS

Pancontinental Oil and Gas NL (ASX: PCL) wishes to advise that Joint Venture (JV) partner and operator of the EP 104 & R1 Onshore Canning Basin project, Arc Energy (ASX: ARQ), has announced that the CDL Rig #18 has been released from the Stokes Bay-1 well.

The EP104/R1 Joint Venture agreed to release CDL Rig 18 and the rig was subsequently released from Stokes Bay 1 at 0900 Hrs on 6[th] November, 2007.

Testing operations to determine reservoir fluid composition will continue once the rig has been moved from the location and the testing crew obtains access to the wellsite. It is expected to take from one to two weeks for testing operations to recommence.

Fluids recovered to date still appear from salinity and density measurements to be drilling mud and associated fluids. Some 24% of the 12,000 barrels of drilling fluids lost during drilling and completion operations has so far been recovered. Equity positions in the Stokes Bay-1 well are now:

• ARC Energy Limited 38.95% (Operator)

• • Empire Oil and Gas NL 14.80% • Emerald Oil & Gas NL 12.75% • Pancontinental Oil & Gas NL 10.00% • Phoenix Resources PLC 10.00% • First Australian Resources Limited 08.00% • Indigo Oil Pty Ltd 05.50%

Further Reports will be made when new information about the testing operations is available.

Enquiries: Matthew Battrick, General Manager Tel: 08 9227 3220, Fax: 08 9227 3211, Email: info@pancon.com.au

Pancontinental Oil & Gas

Ground Flr 288 Stirling St Perth Western Australia T: +61 8 9227 3220 F: +61 8 9227 3211 E: info@pancon.com.au

The summary report on the oil and gas projects is based on information compiled by Mr M A Battrick, BSc, MAAPG, MPESA, MAICD, MPESGB, General Manager of Pancontinental Oil & Gas NL. Mr Battrick has the relevant degree in geology and has been practising petroleum geology for 26 years. Mr Battrick is a full-time employee of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the information stated in the form and context in which it appears.