EMERALD RESOURCES NL — Regulatory Filings 2007

Aug 22, 2007

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23 August 2007

ASX ANNOUNCEMENT AND MEDIA RELEASE

ACTIVITY UPDATE

Lindsey 109A #1R, Dawson County, Texas (FAR 4.64%) Preparing to log and test.

The Lindsey 109A #1R well has reached 12,280 feet and is circulating up formation samples prior to running electric logs over the target Siluro-Devonian formation. The operator is planning to run an open hole Drill Stem Test of the formation during the next 24 hours.

The well is effectively a re-drill of the original discovery well in which FAR was a participant. The discovery well was drilled in 1997 and came on line at 186 barrels of oil per day before ceasing prematurely due to down hole mechanical issues. The operator is estimating 270,000 barrels of oil in total recoverable reserves for this location.

In the event of success the well can be quickly tied into existing production facilities.

The operator is RIM Operating, Inc. of Englewood, Colorado.

Kicker Prospect, Vermillion Parish, South Louisiana (FAR 5%) Fracture treatment in progress

Completion operations are continuing on the Marceaux #1 well.

Stimulation and flow back testing of the Alliance 3 Sand has commenced. The interval between 12,953 and 12,957 feet has been perforated and fracture treated following which the well commenced unloading fluid (on a 14/64 inch choke with 6,025 psi) at the rate of 1.5 barrels per minute recovering 267 barrels at report time and no sand.

Subject to further testing installation of production facilities will commence.

Earlier testing of the Marceaux #1 well confirmed a new oilfield discovery at the Kicker location. The Alliance 3 Sand tested up to 1,056 barrels of oil per day on a 10/64 inch choke prior to loading up with formation sand and mud.

The Operator is Sandalwood Exploration LP of Houston, Texas. FAR’s working interest reduces to 3.75% after payout. All other participants are North American entities.

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FAR ASX Release 23Aug 2007 P.2

Valentine-1, Onshore Canning Basin, Western Australia (FAR 8%) Drilling ahead at 1,566 metres

FAR has been advised by ARC Energy Limited that current operations at the well comprise drilling ahead at 1,566mMD in 8 ½ inch diameter hole.

Valentine 1 is located approximately 20 kilometres north of the township of Derby in northwest Western Australia’s Kimberley region.

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The primary reservoir objective is the Late Devonian aged Virgin Hills Formation. Valentine 1 is designed to intersect the interpreted Virgin Hills sandstones and carbonates near the structural crest of the prospect. The well will be drilled deviated to the 244mm (9 5/8”) casing point at approximately 800 metres measured depth, building to a maximum hole angle of 20[O] . The Valentine 1 well will then be drilled to return to vertical at the top of the main objective section at approximately 3,220 metres measured depth. The deviation at 800m will accommodate the planned subsequent sidetracking operations required to drill the Stokes Bay 1 well, which will be drilled immediately after Valentine 1.

The Valentine prospect is a large lowside fault closure that is mapped in both the EP104 and R1 permits and extends over an area of some 66 square kilometres along the Pinnacle fault system. The Valentine reservoir objective is interpreted to be a slope fan / marine sand body which has a very distinctive seismic signature. The principal risk on the prospect is interpreted to be the stratigraphic updip seal mechanism, but the distinctive seismic signature of the objective section and the proven good petroleum source potential of the underlying Gogo Formation shales, together with the large potential hydrocarbon volumes, make it an attractive target.

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FAR ASX Release 23Aug 2007 P.3

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The Stokes Bay 1 well is planned to be drilled by sidetracking from the Valentine 1 wellbore after the completion of drilling operations at Valentine 1. Stokes Bay 1 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.

Final interests in R1 and EP104 post the Valentine 1 well farmin earning program are:

ARC Energy Limited (Operator)	38.95%
Empire Oil and Gas NL	14.8%
Emerald Oil & Gas NL	12.75%
Pancontinental Oil & Gas NL	10%
Phoenix Resources PLC	10%
First Australian Resources Limited	8%
Indigo Oil Pty Ltd	5.5%

A Drilling Report on the well is contained in the attached well summary sheet.

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FAR ASX Release 23Aug 2007 P.4

VALENTINE-1 DRILLING REPORT CANNING BASIN, WESTERN AUSTRALIA

Date:	Date:	Date:	23 August 2007	23 August 2007	23 August 2007
Permit:			R1
Well Loc
	ation:		Lat : 17o08’ 23.46”SL 123o42’ 3240”E
			ong :.
Directiontarget:	al offset to		0 metres
Elevation	:		Ground Level is 12.4mAMSL
			Rotary Table is 18.1mAMSL
Prognos(measure
	ed Depthsd KB):		Top primary objective	Total depth
			3,222 metres	3,407 metres
Prognos
	ed drilling time:		25 days
Spud Dat	e:		1230 hrs, WST 12 August 2007
Present	Depth:		1566 mMD
Time of R	eporting:		0600 hrs, WST 23 August 2007
OperatioReport:	ns Since Last		Drilled 12 1/4” hole to 812mMD. Set 9 5/8”casing at 808mMD. Drilled 81/2” hole to1566mMD
Current(at 0600hrs,	Operations:23 August)		Drilling ahead in 8 1/2” hole at 1566mMD.
Hydrocar	bon indications:		N/A
			ARC Energy Limited - 38.95% (Operator)
Participa(post ear	nts in the well		Empire Oil and Gas NL - 14.8%Emerald Oil & Gas NL - 12.75%
	ning):		Pancontinental Oil & Gas NL - 10.0%Phoenix Resources PLC - 10.0%First Australian Resources Limited - 8.0%
			Indigo Oil PtyLtd - 5.5%
Commen	t:		N/A
For inform	ation on FAR’s dri	lling activities visit our website at www.far.com.au

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

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