EMERALD RESOURCES NL — Regulatory Filings 2007

Oct 17, 2007

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Level 2, 16 Altona Street West Perth WA 6005 Ph: 08 9482 0500 Fax: 08 9482 0505 Email: info@emeraldoilandgas.com www.emeraldoilandgas.com

18 October 2007

Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000

STOKES BAY - 1 EXPLORATION WELL UPDATE

Please find attached a release on the progress of the Canning Basin exploration programme with the drilling of the Stokes Bay exploration well.

For more information please contact:

Emerald Oil & Gas NL

Tel: +618 9482 0510 www.emeraldoilandgas.com info@emeraldoilandgas.com

JOHN HANNAFORD Executive Director – Finance jhannaford@emeraldoilandgas.com

BOB BERVEN Executive Director – Technical bberven@emeraldoilandgas.com

STOKES BAY-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date:	18thOctober 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
Proposed Total Depth(measured KB):	2800 metres
Prognosed drilling time:	15 days
Spud Date:	0930 hrs, WST 3 October 2007
Present Depth at 0600 hrs:	2755mMD
Time of Reporting:	0600 hrs, WST 18thOctober 2007
Operations Since LastReport:	Since last report on Thursday October 11th, Stokes Bay 1 hasbeen deepened from 1841mMD to present TD of 2755mMD.Stokes Bay-1 was drilled to a depth of 2589 metres at 1930hours on 15 October 2007, having intersected the originalprimary objective; the carboniferous aged Anderson Formation.Subsequently, ARC Energy Limited (Operator) proposed to theEP 104/R1 Joint Venture that the well be deepened from 2589metres to approximately 2800 metres to evaluate the UpperDevonian aged Nullara carbonates. This recommendation wasbased on the favourable information gained from the recentValentine wellbore and recognition that the Nullara carbonatereef level produces oil at Blina, and had strong shows in thenearby Point Torment 1 well. Several JV parties have elected notto participate in the deepening operation, such that equity levelsin this part of the Stokes Bay 1 well (below 2589mMD) are:•ARC Energy Limited – 69.25% (Operator)•Emerald Oil & Gas NL - 12.75%•Pancontinental Oil & Gas NL - 10.0%•First Australian Resources Limited - 8.0%

					Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all	Interval to 2589mMD, (Full EP104 / R1 JV participation) :The well has encountered elevated mud gas and minor oil showsover the gross intervals 2455 to 2470mMD and 2510 to2535mMD in the lower Anderson Formation. On the basis ofinterpretation of data obtained from the low resolution LoggingWhile Drilling (LWD) tools these intervals have indications ofsome hydrocarbon saturations. Further analysis and a possibletesting decision will await higher resolution and more completelogging data to be acquired at the end of the well program.Interval 2589m to 2755mMD (participation by less than all
					ove	e go	s e		as		o			a
					2535m	MD in t	he low	e	r And	erson	For	mati	on.	On the	asis	o
					inter	etation	f data		btain	d fr	m t	e lo	r	solution	Loi
					p										gg
																ol
					While	Drilling	(LWD)		ools t	hese	inte	rvals	ha	ve indica	tions
						hd	b		ti	F	th		l	d	ib
					some	yrocar	on sa		uraon	s.	re	an	ys	s an a	oss
					testin	g decisio	n will a		ait hig	her	resol	ution	an	d more c	omple	t
					loggin	g data to	be acq		ired at	the	nd	f the	we	ll program	.
					Interv	al 2589	to 2		55mM	D (p	artic	pati	on	by less t	han a	l
					partie	s) :											efyf-nednt
					In thewell	past 24has enc	hours,untere		hilsta to	rillintal l	atoss	deof r	thetu	of 2755mrns indic	D, ttive	o
					penet	rating a p	orous	a	nd hig	hly p	erme	able	int	erval. Pre	limina	r
					correl	ation indi	cates th		ese lo	sses	occu	rred	at	or near th	e top	o
					the N	ullara F	m whic		h is t	entati	vely	pick	ed	at 2722	mMD	(
					2294m	TVDSS)	; some		86m sh	allow	er th	an a	t Pt	Torment	1.
					Effort	s to cont	rol the		fluid l	osses	we	re s	ucc	essful, an	d whe
					attem	pting to	rill ahe		ad at t	he s	ame	dept	h,	mud retur	ns we	r
					again	lost to th	e forma	t	ionTh	e los	ses	have	no	w been co	ntain
					b th	ttin	f LCM		. r	th	intr	l	nd	h ll	rti
					y	spog	o		acos	e	e	a,		e we o	ea
					is PO	OH for lo	gging a		nd pos	sible	drill	stem	te	st to asse	ss wh	a
					fluids	are prese	nt in th	e	forma	tion.
									f					f	f
		Current Operati	ons:		Mon	itoring st	tic wel		luid lowireli	ssesne lo	priorggin	to p	ullin	g out o h	ole or
												.
		Hydrocarbon in	dication	:	M	ud gas a	d show		s as n	ted i	n the	And	ers	on Forma	ion.
		Comment:								N/A
					Empir	e Oil and	Gas N		- 14.8	%
					ARC	Energy Li	mited -	3	8.95%	(Op	erato	r)
		Particiants in t	he Perm	it	Emer	ald Oil &	Gas NL		- 12.7	5%
		p
					Panc	ontinenta	l Oil &		as NL	- 10.	0%
		(post earning):			PhoeFirst	nix ResoAustralian	urces PResou		C - 10rces Li	.0%mited	- 8.	0%
					Indig	o Oil Pty	Ltd - 5.5		%

About Emerald Oil & Gas NL

Emerald Oil & Gas NL (ASX: EMR; EMRO) was listed on the ASX in June 2006, raising $4 million. Emerald is an oil and gas exploration and production company with project interests in North Dakota and Texas in the USA and in the Canning Basin of Western Australia. Emerald’s focus is on conventional reservoir targets for oil and gas prospects and its primary objective is to achieve near term production and cashflow to build shareholder value and provide funds to fuel further growth. Emerald’s strategy is to take modest but meaningful positions in low risk exploration projects that can be swiftly brought into production.

Information in this announcement pertaining to exploration potential was compiled by Robert Berven, Emerald Oil & Gas NL’s Technical Director who is a Member of the Australasian Institute of Mining and Metallurgy and the American Association of Petroleum Geologists CPG # 2498.

Statements regarding Emerald’s plans with respect to its petroleum properties are forwardlooking statements. There can be no assurance that Emerald’s plans for development of its petroleum properties will proceed as currently expected. There can be no assurance that Emerald will be able to confirm the presence of additional petroleum deposits, that any discovery will prove to be economic or that an oil or gas field will successfully be developed on any of Emerald’s petroleum properties.