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EMERALD RESOURCES NL Regulatory Filings 2007
64849_rns_2007-05-21_9131000f-067c-4119-8db5-9e3cf09ed8c8.pdf
Regulatory Filings
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Level 2, 16 Altona Street West Perth WA 6005 Ph: +618 9482 0500 Fx: +618 9482 0505 Email: [email protected] www.emeraldoilandgas.com
22 May 2007
Centralised Company Announcements Platform Australian Stock Exchange 10th floor, 20 Bond Street Sydney NSW 2000
REPOSITIONS INTEREST IN EP104 JV
Highlights
- $\div$ Re-positions interest in EP104 / R1 JV, reduces exposure to 13% of drilling costs;
- ♦ Operator to drill two wells commencing in July 07:
Emerald Oil & Gas NL ("Emerald") hereby advises it has reached agreement in principle with ARC Energy Limited ("ARC") whereby Emerald will assign to ARC a part of its earn-in interest in the EP104/R1 licences in the Canning Basin. Under the terms ARC will pay 12% of the agreed earn-in expenditure for a 6% working interest in the licences. The agreement is subject to the finalisation of formal documentation and the consent and approval of other joint venture parties.
At the completion of the agreement, Emerald will retain the right to earn a 12.75% interest in the EP104/R1 licences for payment of 13% of the costs of the first well. Hence Emerald's exposure to drilling costs will reduce from 25% to 13% in the first well.
The Joint Venture has approved a program to drill two wells from the same location commencing in July 2007, as follows:
- $1.$ Valentine: vertical well to test the Valentine prospect which has the potential to contain up to 1 TCF of gas if hydrocarbons are present;
- $2.$ Stokes Bay: deviated well to test the Stokes Bay prospect which is following up the Point Torment gas discovery and has the potential to contain up to 80 BCF of gas and 10.3 m bbls condensate;
This agreement will significantly reduce Emerald's costs in the wells, whilst preserving a meaningful working interest level in this high reserve potential project.
Further information on the details of the drilling program will be released when available.
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.
For more information please contact:
Emerald Oil & Gas NL Tel: +618 9482 0510
JOHN HANNAFORD Executive Director - Finance [email protected]
BOB BERVEN Executive Director - Technical [email protected]
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.