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EMERALD RESOURCES NL Capital/Financing Update 2007

Aug 29, 2007

64849_rns_2007-08-29_5c52765c-4b03-4f14-9d9b-e6bd8f548259.pdf

Capital/Financing Update

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EMPIRE OIL & GAS NL

ACN 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 [email protected] WEBSITE www.empireoil.com.au\

30 August 2007

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

Dear Sirs

RE: EP 104/R1 CANNING BASIN, WESTERN AUSTRALIA – UPDATE ON THE VALENTINE-1 WELL

Please find attached a release on the progress of the Empire Oil & Gas N.L. Canning Basin exploration programme with the drilling of the Valentine-1 exploration well.

Regards

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J L CRAIG MARSHALL Managing Director

VALENTINE-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

CANNING BASIN, WESTERN AUSTRALIA BASIN, WESTERN AUSTRALIA
Date: 30 August 2007
Permit: R1
Well Location: Lat : 17o08’ 23.46”S
Long: 123o42’ 32.40”E
Directional offset to
target:
0 metres
Elevation: Ground Level is 12.4mAMSL
RotaryTable is 18.1mAMSL
Prognosed Depths
(measured KB):
Top primary objective Total depth
3,222 metres 3,407 metres
Prognosed drilling time: 25 days
Spud Date: 1230 hrs,WST 12 August 2007
Present Depth: 2,340mMD
Time of Reporting: 0600 hrs,WST 30 August 2007
Operations Since Last
Report:
Drilled 8 ½” hole from 1,566 to 2,340mMD
Current Operations: Drillingahead in 81/2” hole at 2,340mMD
Hydrocarbon indications: Elevated gas levels above background gas
levels were detected over a 2 to 3 metre
interval at approximately 2,250mMD whilst
drilling interbedded Claystone and dense well
cemented sandstones of the marine member
of the Anderson Formation. The significance
of these gas readings will be determined once
the well has reached total depth and wireline
logginghas been completed
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%
Comment: N/A

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