PALITO BLANCO PROJECT – PRODUCTION UPDATE
Emerald Oil & Gas NL (“Emerald”) is pleased to provide an update on Production
activities at the Jaime Garcia Gas Unit #2 well at Palito Blanco project in Jim
Wells and Duval Counties, Texas.
PALITO BLANCO PROJECT
DUVAL AND JIM WELLS COUNTIES, TEXAS
(Emerald earning 15% Working interest, Operator: Oso Exploration.)
Progress report on production operations at the Jaime Garcia Gas Unit #2 well as
at 10.00am 15 November 2007 (Texas time).
Current Activity: The well has being hooked up to production
facilities and commenced production from the
lower Yegua sands following fracture stimulation.
Fracture fluid is currently being recovered at a
rate of 175 BBL per day. The well is steadily
increasing flow rate to a current 480 MCF per
day using as fluid recovery declines with a
7/64ths inch choke at the wellhead and an
adjustable choke coming in to the production
equipment set at about the same size.
Future Plans: Continue to recover fracture fluid and monitor
flow rate until all fluid has been recovered and
the flow rate stabilizes.
Emerald Interest: Emerald has a 15% working interest in this
prospect.
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