EMERALD RESOURCES NL — Regulatory Filings 2007

Apr 29, 2007

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

30 April 2007

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

QUARTERLY ACTIVITIES AND CASHFLOW REPORT MARCH 31, 2007

Please find attached the Quarterly Activities and Appendix 5B Quarterly Cashflow reports for the quarter ended March 31, 2007.

Yours sincerely,

. o. K

JOHN HANNAFORD Director - Finance

ASX Release

Monday 30 April 2007

EMERALD OIL & GAS NL

Level 2, 16 Altona Street West Perth WA 6005 Tel: +61 8 9482 0510 Fax: +61 8 9482 0505

Contact:

BOB BERVEN Technical Director bberven@emeraldoilandgas.com

JOHN HANNAFORD Finance Director jhannaford@emeraldoilandgas.com

E-MAIL: info@emeraldoilandgas.com

WEBSITE: www.emeraldoilandgas.com

Directors/Officers:

Jeremy Shervington (Chairman) John Hannaford Bob Berven

Issued Capital:

46,612,549 Shares (EMR) 27,237,451 Listed options (EMRO) Unlisted options 6,486,638

Market Capitalisation:

Undiluted \$11m (24 cents)

QUARTERLY ACTIVITIES REPORT

FOR THREE MONTHS ENDED 31 MARCH 2007

Highlights

USA

• W NW Alice Prospect, Jim Wells County, Texas, (Emerald 10%) RJ Hunter #1 well discovered 2 zones of gas bearing sands. Completed subsequent to the end of the quarter, and currently flow testing middle Yequa sand interval.
• Glamour Girl Prospect, Duval County, Texas (Emerald 15%) first well drilled subsequent to the end of the quarter. Logs and sidewall cores indicated poor quality, thin sandstones and uneconomic gas shows. Well plugged and abandoned.
• Hope Prospect, Lavaca County, Texas. (Emerald 6.87%) Emerald announced its participation in 3D seismic defined prospect with up to 65.0 Bcf gas potential. Project operator Main Energy plans to drill the first well in June 07.
• Greenbush Prospect, North Dakota (Emerald 15%), 3D seismic program complete, interpretation has highlighted several high quality oil targets; oil well (possibly horizontal) planned for June 2007.

Canning Basin, WA

• $\div$ EP104 JV, (Emerald 18.75%) ARC Energy appointed operator, plans to drill a deep vertical well in June 2007 to test the 1 Tcf gas potential Valentine prospect. Well will also test shallower lateral extension of the Stokes Bay prospect.
• $\div$ EPA 405/6, (Emerald 100%) native title negotiations on-going.

Overview

The board of Emerald Oil & Gas NL is pleased to present its quarterly activities report for the quarter ended 31 March 2007.

Emerald's main area of interest is in deep south Texas (South Texas basin), mainly in Webb, Jim Hogg and Hidalgo Counties (the main part of the Lower Wilcox and Lobo sand trends), and extending northward into Duval, Jim Wells and Lavaca Counties (the Frio, Wilcox and Yequa sand trends).

The Company's NW Alice, Glamour Girl and Hope projects were signed since the end of the last quarter. Emerald management sees these new projects as a continuation of the Company's South Texas strategy, being to take modest but meaningful positions in projects in known producing areas that may quickly be brought to commercial development. Both the Glamour Girl and NW Alice projects were drilled during and since the end of the quarter, as reported below.

The Company will continue to pursue new project opportunities in South Texas and onshore USA generally through its network and by acquisition to grow its reserve base, potential production and cash flow.

The next 3 months of 2007 will see a high level of activity with exploration wells planned in USA at Hope and Greenbush in the second quarter, and with the first well at EP104 in the Canning Basin of Western Australia to test the large Valentine prospect.

USA Projects

South Texas

Emerald is attracted to South Texas as its principal area of focus in the USA due to:

• prolific historical producing region;
• abundant new opportunities;
• extensive seismic and well data available:
• extensive available infrastructure;
• large E&P companies re-entering region;
• development friendly culture;
• abundant personnel and service companies.

The Company increased its interests in South Texas during the quarter with the NW Alice, Glamour Girl and Hope prospects being added to existing project interests.

Figure 1. South Texas map showing project locations.

North West Alice, Jim Wells County, Texas

(Emerald 10% Working Interest: Operator: Noble Energy, Inc)

The NW Alice prospect covers over 2,000 acres in Jim Wells County. Operator Noble Energy Inc. well spudded the RJ Hunter #1 well on March 11, 2007 and reached its prognosed target depth of 8,500 feet on March 28. The well discovered two main Yegua hydrocarbon bearing zones and smaller associated intervals for a total net interval of approximately 50 feet of gas and condensate-bearing sands. The primary objective Yegua-15 sand at around 7,700 feet encountered gas, while the secondary objective lower Yequa-21 sand at approximately 8,220 feet also encountered gas. After logging, production casing was run and cemented and the secondary objective the lower Yegua sand at 8220 feet, was perforated. A down-hole technical issue prevented flow testing of the lower sand in this well. It appears that the casing collapsed when perforated at the secondary objective, Yegua-21 sand. Partners in the well agreed to plug off the lower zone at approximately 8200 feet, move uphole and perforate the upper zone, which produced gas in the previous offset well to the south drilled by Delta-Gulf in 1954. It is possible that the Operator could sidetrack and re-complete the Yequa 21 zone at a later date or test it in subsequent development wells. The upper zone from 7696 to 7710 feet was completed, perforated and fracture treated and flow testing commenced. The Operator has carried out a tracer survey to determine the source of fresh water which is entering the well bore and inhibiting gas flow rates.

Project Status: Flow testing of the well continues. Results of the tracer survey will not be known until early May.

Glamour Girl Project, Duval County, Texas.

(Emerald 15% Working Interest; Operator: Anderson Oil Ltd)

The Glamour Girl prospect is a 2D seismic defined prospect of which leases currently cover 2,000 acres. Operator Anderson Oil spudded the Barfield #1 well on 4 April 2007 and reached target depth of 8,300 feet on 24 April 2007. The well offsets Arco Elizabeth Taylor Well (500 feet away) drilled in the early 1980's that had 23 net feet of calculated (from logs) gas/condensate pay that was not completed. The main objective Queen City "B" sand was encountered 40+ feet high to the offset, however the sand was found to be slightly thinner and the porosity had decreased from that in the Arco well. The final lot of sidewall cores from this sand interval showed formation water underlying the gas-bearing section. Log analysis showed the gas-bearing zone to be too thin and tight to be commercially viable. The partners in the well agreed to plug and abandon the well after disappointing wireline log and sidewall core results. Several other thin, gas-bearing sands were also encountered in the Queen City but porosities were too low to produce at commercial rates. The well was plugged and abandoned on 27 April 2007.

Project Status: The partners in the Glamour Girl prospect are yet to determine a future work program for the remainder of the area under lease.

Hope Prospect, Lavaca County, Texas

(Emerald earning 6.87% WI; Operator: Main Energy)

Emerald announced on April 30, 2007 that it had entered into an agreement to participate in a 6.87% interest in the Hope Prospect, to be drilled in June 2007. The operator Main Energy is an experienced South Texas explorer and producer.

The Hope Prospect is located in the South Texas Basin in Lavaca County, Texas, 80 miles east southeast of San Antonio. It is on trend with prolific Upper and Lower Wilcox Sand production. Fluvial, deltaic sand deposition generates growth faults and associated structures and reservoirs in the trend. In addition, the middle-Wilcox-age Yoakum Channel can add reservoir seal to the lower Wilcox sandstones under certain combination traps. Approximately 1,300 acres are currently under lease and the proposed total depth is a 10,500 feet well which is a "non-pipe" test.

Regional Prospectivity

Hope Prospect is a large structural feature with multiple reservoir objectives in the Lower Wilcox and Roeder sandstone horizons. The prospect has been mapped and is controlled by subsurface wells and 3-D seismic data. The timing of the trap indicates an early trap which should enhance reservoir quality and reserve potential. Generally, reservoir quality in the Wilcox Fields increase toward the top of the structure due to higher hydrocarbon saturation.

Prospect Geology

Hope Prospect is defined by 3-D seismic and subsurface well control. It is a large anticlinal structure (1256 ac) downthrown to two en echelon growth faults. Additional lateral seal on the northeast side is gained by shale fill in the Yoakum channel. The primary reservoirs are the Upper and Lower Wilcox deltaic sands at 9,900-10,000' and the Lower Wilcox Roeder sands at 10.000-10.500'.

There are three key show wells on the prospect all drilled by Mosbacher production. The first well, The Mosbacher #1 Deborah encountered a 20' delta bar sand productive at 9,340-9,370' (measured depth) which produced 0.6 BCF gas. An offset to the north, the Mosbacher Hammon well, found the Deborah pay sand shaled out but encountered the Hammon sand from 9,480-9,505'. An abbreviated core analysis of the sand noted blue fluorescence at 9.484' with low permeability. Electric logs showed five feet of resistivity with an inferred gas/water contact at 9,283' (subsea). The third offset, the Mosbacher #1 Jacobs was drilled 4,500 feet west southwest of the Hammon well. It encountered the Hammon sand at 9,486-9,515' measured depth. Electric logs indicated a gas/water contact at 9,281' (subsea). A formation test was taken at 9,490 and was analysed gas productive, however, the well was not produced.

Reserve Potential

The Jacobs well encountered the Hammon sand six feet high to the Mosbacher Hammon well with a gas/water contact within three feet of the Hammon well. Considering elevation and calibration measurements, the two wells apparently share the same qas/water contact. Seismic shows a 50-foot structural gain to the Jacobs well, yielding potentially 65 feet of hydrocarbon column. Reserve potential for the Hammon sand is 25 BCF (1,256 ac $\times$ 20 ft $\times$ 1,000 MCF/ac-ft).

The final reservoir, the Lower Wilcox Roeder sand, consists of a 600-acre four-way closure updip of the Mosbacher Hammon well. The closest Roeder sand analog to the Hope prospect is Koenig Field in Dewitt County. Koenig Field is along strike to the west and has produced 35 BCF from Roeder. Koenig is a 400-acre anticline with 50' of column. Hope prospect is a 600acre anticline with 50-60' of column. Potential reserves for the Roeder sand at Hope Prospect exceed 40 BCF.

Project status: Operator Main Energy plans to drill the first well in June 2007.

Greenbush Project, Ward & Renville Counties, North Dakota

(Emerald 15% Working Interest; Operator: Golden Eye Resources)

A new 3-D seismic survey has been completed over this oil play and the final interpretation of the data has recently been received by Emerald. A new vertical and/or horizontal well is proposed to test the carbonate build-ups and the Kisbey sandstone both of which produce oil nearby. It is anticipated the second well, possible a horizontal well, will be drilled in June, 2007.

Project Status: A well planned in June, 2007 using 3-D seismic data.

Pandura Project, Webb County, Texas

(Emerald earning 15% Working Interest; Operator: Daytona Energy Corporation)

Emerald has an agreement with Daytona Energy (operator) to participate in a 15% interest in the Pandura project, in Webb County Texas. The project has Lobo sand objectives and offsets a producing well (Kathleen Marie $#1$ ) that has produced over 1.2 BCF gas and 100,000 barrels of condensate. Daytona Energy has advised that it is in the process of renewing the leases over the project, a process that had been delayed by the difficulty in locating one of the lessor parties.

Project Status: Emerald is currently awaiting revised cost estimates for the first well from Daytona Energy once the leases have been renewed. It is expected the well will be drilled in Q3 2007.

Steamboat Prospect, Jim Hogg County, Texas.

(Emerald 25% Working Interest)

Steamboat prospect has Wilcox sand targets with potential reserves of 30-100 BCF gas. A four-party consortium has secured lease options covering approximately 1800 - 2000 acres over this prospect. The consortium is farming out a 3-D seismic survey and one well possibly in Q4, 2007.

Project Status: The project is being marketed to potential investors to fund the 3D seismic survey and well with the four party consortium seeking a carried working interest in the first well.

Progresso Project, Hidalgo County, Texas

(Emerald earning 30%)

Emerald's subsidiary Emerald Gas USA LLC, has an agreement with Daytona Energy to participate in a 30% working interest in the Progresso gas exploration project located in Hidalgo County Texas. No work was undertaken during the quarter. Following a change in management of the operator Daytona Energy, Daytona advised that it no longer wishes to pursue this project and has offered the existing lease package to Emerald. Emerald's technical consultants are currently reviewing the seismic data and remapping this project.

Project Status: Awaiting a recommendation from consultant Mary Ginzel in USA who is currently reviewing seismic data.

New Projects - USA

The Company continues to review and assess several new oil and gas exploration project opportunities in the USA which have been sourced through management's existing industry network.

Australian projects

EP104, Canning Basin WA

(Emerald earning 18.75% Working Interest; Operator: Arc Energy Ltd)

Arc Energy was appointed operator of the EP104 J.V. during the quarter. Arc has recommended drilling one vertical well to test both the Valentine and Stokes Bay prospects in Q2, 2007 once its Century Rig #7 mobilises to the Canning Basin.

It is estimated that the Stokes Bay prospect could hold up to 10 MMBO and 80 Bcf of gas. The deeper Valentine Prospect is estimated to hold more than 1 Tcf of gas. Emerald will earn its 18.75% interest in the permit through participation in the drilling of the Valentine prospect.

Project Status: ARC Energy plans to drill one well at EP104 as part of a multi well Canning Basin program with its Century #7 rig, commencing in June 2007.

EPA 4/05-6 Canning Basin, WA

(Emerald 100% Working Interest and operator)

This permit application is currently proceeding through the Nature Title process. The permit area contains several structural "look-alikes" to the Stokes Bay Prospect (in EP-104) along the Pinnacle Fault Zone. A discovery at Stokes Bay/Valentine would add considerably to the exploration potential to this 100% Emerald permit.

Emerald's mapping of leads and prospects on EPA 4/05-6 both along and near the Pinnacle Fault has identified several large structures that may host significant accumulations of hydrocarbons, some several times larger than the Stokes Bay prospect, as shown in Figure 2 below.

Project Status: The Native Title Right to Negotiate process is continuing.

Canning Basin showing Emerald's EP104 / R1 and EPA 4/05-6 interests, and Figure 2: mapped prospects and leads.

Corporate

At 31 March 2007 the consolidated entity had \$1.66 million cash on hand.

On 14 March 2007, the Company announced that it had completed the placement of 711,637 shares under the Small Share Parcel Sale Facility Agreement at a price of 13.0 cents per share. Cheques were mailed to 5,021 shareholders who participated in the facility.

As of 30 April 2007, Frank Silc will no longer be engaged as a consultant to Emerald in the USA. Emerald would like to thank Mr Silc for his contributions to the development of Emerald's USA projects over the past 12 months.

The Company made the following announcements during the quarter and up to the date of this quarterly report.

30/04/2007	Drilling update USA
30/04/2007	New USA project - Hope Prospect
24/04/2007	Drilling Update - Correction
24/04/2007	Drilling Update
19/04/2007	Drilling Update
13/04/2007	Change of Director's Interest Notice
10/04/2007	Glamour Girl Prospect Drilling Update
5/04/2007	Glamour Girl Prospect Prepares to Spud Initial Well
2/04/2007	Drilling Update - NW Alice project
27/03/2007	Drilling update
20/03/2007	Drilling Update - NW Alice project
14/03/2007	Small Share Parcel Sale Facility Completed
14/03/2007	Northwest Alice Depth correction
13/03/2007	NW Alice Prospect Spuds - Jim Wells County Texas
12/03/2007	Half Year Accounts
28/02/2007	North West Alice Update Announcement
22/02/2007	Pandura Update
21/02/2007	Small Share Parcel Sale Facility Update
2/02/2007	Amended Second Quarter Cashflow Report
31/01/2007	Second Quarter Activities & Cashflow Reports
18/01/2007	EGM Results
15/01/2007	Appendix 3B

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 forward-looking 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.

Rule 5.3

Year to date

$(9$ months) \$A'000

$\overline{a}$

$(928)$

$(903)$

$100$

$(1,731)$

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Emerald Oil and Gas NL
ABN	Quarter ended ("current quarter")
009 795 046	31 March 2007

Consolidated statement of cash flows

Current quarter Cash flows related to operating activities \$A'000 $1.1$ Receipts from product sales and related debtors $\overline{\phantom{a}}$ $1.2$ Payments for exploration $(701)$ $\left( a\right)$ and evaluation (b) development (c) production (d) administration $(411)$ $1.3$ Dividends received $\vert A$ Interest and other items of a similar nature $31$ received $1.5$ Interest and other costs of finance paid $1.6$ Income taxes paid $1.7$ Other (provide details if material) Net Operating Cash Flows $(1,081)$

1.8	Cash flows related to investing activities Payment for purchases of: (a)prospects investments	(b)equity
		other (c)	fixed
	assets
1.9	Proceeds from sale of:	(a)prospects (b)equity
	investments
		$(c)$ other	fixed
	assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows
1.13	Total operating and investing cash flows (carried forward)			(1,081)	(1,731)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1,081)	(1,731)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.		3
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other - Capital Raising Costs		(437)
1.20	Other - Corporate Fee		(110)
	Net financing eash flows		(544)
	Net increase (decrease) in cash held	(1,081)	(2,276)
1.20	Cash at beginning of quarter/year to date	2,745	3.940
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1,664	1.664

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

The amount above represents payments to directors and to a company associated with John Hannaford. The payments relate to the provision of consulting fees, company secretarial services, accounting and bookkeeping, secretarial services and the provision office accommodation on commercial terms.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$\rm N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available SA'000	Amount used \$A'000
3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	1,500
-4.2	Development
4.1	Exploration and evaluation	1,500
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter SA'000
5.1	Cash on hand and at bank	1.664	2.745
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1.664	2.745

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished. reduced or lapsed	n/a	Right to Acquire 25% in Sharon North project	n/a	n/a
6.2	Interests in mining tenements acquired or increased	n/a	Right to acquire 15% in Glamour Girl project Right to acquire 10% in NW Alice project	n/a	n/a

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price Issue per security (see note 3)	Amount paid up per security (see note 3)
				(cents)	(cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3	+ Ordinary securities	45,612,549	33,469,543
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs
7.5	+ Convertible debt
	securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	27,237,451 661,638 2,000,000 2,000,000 1,500,000 325,000	27,237,451	Exercise price 20 cents 17.68 cents 25 cents 30 cents 25 cents 25 cents	Exercise date 31/05/08 23/01/11 31/12/08 31/12/09 28/02/10 31/12/09
$7.8$	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

This statement has been prepared under accounting policies which comply with $\mathbf{1}$ accounting standards as defined in the Corporations Act or other standards acceptable to $\text{ASX}$ (see note 4).

$\overline{2}$ This statement does / does not* give a true and fair view of the matters disclosed.

Sign here:

Date: 30 April 2007

(Director/Company secretary)

Print name: John Hannaford

Notes

The quarterly report provides a basis for informing the market how the entity's $\mathbf{1}$ activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

$\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Cash Flow Statements apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

$\begin{tabular}{ll} \multicolumn{1}{l}{{\color{blue} \hbox{\scriptsize{max}}}} & \multicolumn{1}{l}{\multicolumn{1}{l}\hbox{\scriptsize{max}}}\end{tabular}$

⁺ See chapter 19 for defined terms.