EMERALD RESOURCES NL — Regulatory Filings 2007

Oct 3, 2007

4 October 2007

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ASX ANNOUNCEMENT AND MEDIA RELEASE

ACTIVITY UPDATE

- Stokes Bay 1, Onshore Canning Basin, Western Australia (FAR 8%) Sidetrack commences - Drilling ahead at 1,226mMD

FAR has been advised by ARC Energy Limited that, after setting cement plugs, Valentine-1 was sidetracked as Stokes Bay-1 at 0930 hrs on 3 October from 975mMD. Current operations at the well comprise drilling ahead in 8 ½” hole at 1,226mMD.

The Stokes Bay-1 well is planned as a test of the extent and reservoir development of the gas accumulation intersected by the Point Torment-1 well and will be drilled as a deviated well with a total depth of approximately 2,500 metres. Point Torment-1 was drilled in 1992 and subsequently flowed gas at a rate of up to 4.3 million cubic feet of gas per day from the Carboniferous aged Anderson Formation sandstones. Subsequent tests of these sands produced ambiguous information on potential volumes and reservoir quality and the Stokes Bay-1 well is designed to provide a definitive test of the reservoir quality and extent of the accumulation.

The Valentine-1 well intersected very strong gas shows and indications of porosity in the Anderson and Laurel Formations downdip from the target interval in the Stokes Bay-1 well. This is a very positive indication for Stokes Bay-1 which is targeted to intersect these objectives within closure, some 90 meters updip from the Valentine-1 intersection.

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

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FAR ASX Release 4 Oct 2007 P.2

STOKES BAY-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date:	4thOctober 2007
Permit:	R1
Well Location:	Lat : 17o08’ 23.46”S Long : 123o42’ 32.40”E
Directional offset to target:	1024 metres
Elevation:	Ground Level is 12.4mAMSL Rotary Table is 18.1mAMSL
Proposed Total Depth (measured KB):	2505 metres
Prognosed drilling time:	15 days
Spud Date:	0930 hrs, WST 3 October 2007
Present Depth at 0600 hrs:	1226 mMD
Time of Reporting:	0600 hrs, WST 4thOctober 2007
Operations Since Last Report:	Electric wireline logging operations on Valentine-1 was completed at 23:30 hrs on 28th September. Cement plugs were set to abandon the Valentine-1 borehole and enable a sidetrack of the well to the Stokes Bay-01 target location. The rig was released from Valentine-1 at 18:00 hrs on 30th September. A kick off cement plug was then set with top at 906mMD at the base of the Noonkanbah Formation. Valentine-1 was sidetracked as Stokes Bay-1 at 0930 hrs on 3 October from 975mMD.
Current Operations:	Drilling ahead in 8 ½” hole at 1226mMD
Hydrocarbon indications:	None
Comment:
Participants in the well (post earning):	Empire Oil and Gas NL - 14.8% ARC Energy Limited - 38.95% (Operator) Emerald Oil & Gas NL - 12.75% Pancontinental Oil & Gas NL - 10.0% Phoenix Resources PLC - 10.0% First Australian Resources Limited - 8.0% Indigo Oil PtyLtd - 5.5%

A time versus depth chart follows:

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FAR ASX Release 4 Oct 2007 P.3

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

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