EMERALD RESOURCES NL — Regulatory Filings 2007

Nov 4, 2007

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EMPIRE OIL & GAS NL

ABN 55 063 613 730 SUITES 7 & 8 154 HAMPDEN ROAD NEDLANDS 6009 WESTERN AUSTRALIA TELEPHONE 61 8 6389 2687 FACSIMILE 61 8 9386 6812 EMAIL info@empireoil.com.au WEBSITE www.empireoil.com.au\

5 November 2007

ASX Limited Company Announcements Office Level 4 20 Bridge Street SYDNEY NSW 2000

Dear Sirs

RE: EP 104/R1 CANNING BASIN, WESTERN AUSTRALIA – COMPLETION AND TESTING OF THE STOKES BAY-1 WELL, NULLARA FORMATION

Please find attached the initial results of the testing of the Nullara Formation from the Stokes Bay-1 well.

The Company will advise when formation fluids have been identified flowing from the well over the next day.

Yours faithfully

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J L CRAIG MARSHALL Managing Director EMPIRE OIL & GAS N.L.

STOKES BAY-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

	Date:	5 November 2007	5 November 2007	5 November 2007	5 November 2007	5 November 2007	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 12.4mAMSLRotaryTable 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 5 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:	Runningflow test
	Hydrocarbon indications:	N	o hydrocarbo	ns have been	observed to dat	e
	Comment:	In	excess of [10	000] barrels	of drilling fluids	ere lost durin	g re
		drre	illing and comcovered. The	,pletion and stest will be c	ome [1,500] barrontinued until for	els have beenmation fluids a
		id	entified.
		EA	mpire Oil andRC Energy Li	Gas NLmited	1 38	.80%.95% (Operat
	Participants in the Permit	EP	merald Oil &ancontinental	Gas NLOil & Gas NL	12 10	.75%.00%
	(post earning):