pandura to be p and a, page-9

PANDURA PROJECT DRILLING UPDATE
Emerald Oil & Gas NL (“Emerald”) hereby provides an update on drilling of the
Kathleen Marie # 2 well at the Pandura prospect in Webb County, Texas USA.
PANDURA PROSPECT
WEBB COUNTY, TEXAS
(Emerald earning 15% Working interest, Operator: Daytona Energy
Corporation.)
Progress report on the Kathleen Marie #2 well as at 9.00 pm 10 September
2007 (Texas time).
Current Depth: 8,500 feet (total depth).
Operation: Preparing to plug and abandon after review of
wireline logs.
Wireline logs confirmed the presence of several
thin (1-2 feet) gas bearing sands within the Lobo
primary and secondary objectives. However,
these thin sands do not appear to be sufficient to
support an economic well, when compared to
surrounding producing wells in the area.
The operator Daytona Energy Corporation has
therefore recommended plugging and abandoning
the well.
Emerald Interest: Emerald has earned a 15% working interest in the
well by paying 21.18% of the dry hole costs of
the well.
Page 2
Emerald advises that it will provide further progress reports as they are
available on its other drilling operations currently under way:
􀂙 Jaime Garcia gas unit #2 well at the Palito Blanco prospect located in
Duval and Jim Wells Counties, Texas, USA;
􀂙 Valentine 1 well, EP104/R1 project, Canning Basin WA.