stokes bay update

7 October 2008
STOKES BAY UPDATE
Emerald Oil & Gas NL (“Emerald”) is pleased to provide an update on activities at the Stokes Bay#1 well at the EP104/R1 project.

EP 104/R1 STOKES BAY 1 WELL
CANNING BASIN, WESTERN AUSTRALIA
(Emerald 12.75% Working interest, Operator: ARC Energy.)
Emerald Oil & Gas NL is pleased to announce that it has been advised by the Operator, Buru Energy Limited that equipment and crew are currently being mobilised to the Stokes Bay-1 well location to complete road works that will
enable testing of the cavernous reef system intersected in the well in November 2007.

Final technical work on the testing programme concluded that Nitrogen is the best fluid for circulation of the heavy muds above the reservoir section in the well. Nitrogen will be used to reduce the pressure on the formation in an effort to induce a flow and replaces the surfactant previously proposed to be circulated
in the well with fresh water.

The Stokes Bay-1 testing to date has not provided any formation fluids from the Nullara reefal carbonates. This Test Programme is designed to determine the
presence of hydrocarbons and the extent of the reservoir parameters for this cavernous, fractured formation.
Based on the completion of the road works and the availability of the Nitrogen equipment, testing on the well is now expected to occur in October 2008. Once
the results of this operation have been obtained and reviewed, the next steps in the programme will be considered by the Parties to the Joint Venture.