EMERALD RESOURCES NL — Regulatory Filings 2007

Nov 4, 2007

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5 November 2007

ASX ANNOUNCEMENT AND MEDIA RELEASE

STOKES BAY-1 ACTIVITY UPDATE

- Stokes Bay 1, Onshore Canning Basin, Western Australia (FAR 8%) Production flow test in progress

FAR has been advised by ARC Energy Limited that production tubing has been run in the well and a production flow test commenced at 17:00 hours on Sunday 4 November.

The well has been flowing at relatively steady rates of some 3,000 to 4,000 barrels of fluid per day at a well head pressure of some 30 psi. Fluids recovered to date appear from salinity and density measurements to be drilling mud and associated fluids. No hydrocarbons have been observed to date.

In excess of 12,000 barrels of drilling fluids were lost during drilling and completion and approximately 2,400 barrels have been recovered. The test will be continued until formation fluids are identified.

A Drilling Report on the Stokes Bay-1 well is contained in the attached well summary sheet.

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FAR ASX Release 5 Nov 2007 P.2

STOKES BAY-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date:	5 November 2007
Permit:	R1
Well Location:	Lat : 17o08’ 23.46”SLong : 123o42’ 32.40”E
Directional offset to target:	1024 metres
Elevation:	Ground Level is 12.4mAMSLRotary Table is 18.1mAMSL
Spud Date:	0930 hrs, WST 3rdOctober 2007
Present Depth at 0600 hrs:	2777m MD
Time of Reporting:	0600 hrs, WST 5 November 2007
Operations Since LastReport:	Since the last report on 1 November, production tubing hasbeen run in the well and a production flow test commenced at17:00 hours on Sunday 4 November.The well has been flowing at relatively steady rates of some3,000 to 4,000 barrels of fluid per day at a well head pressure ofsome 30 psi. Fluids recovered to date appear from salinity anddensitymeasurements to be drillingmud and associated fluids.
Current Operations:	Running flow test
Hydrocarbon indications:	No hydrocarbons have been observed to date
Comment:	In excess of 12,000 barrels of drilling fluids were lost duringdrilling and completion and approximately 2,400 barrels havebeen recovered. The test will be continued until formation fluidsare identified.
Participants in the Permit(post earning):	ARC Energy Limited38.95% (Operator)Empire Oil and Gas NL14.80%Emerald Oil & Gas NL12.75%Pancontinental Oil & Gas NL10.00%Phoenix Resources PLC10.00%First Australian Resources Limited8.00%Indigo Oil PtyLtd5.50%

For information on FAR’s drilling activities visit our website at www.far.com.au

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