Emerald Oil & Gas NL is a petroleum exploration company with projects in the USA and Western Australia. Emerald holds interests in unconventional oil assets in the Williston Basin's Bakken/Three Forks play located in North Dakota and a large acreage holding over the Niobrara Continuous Shale Oil accumulation in Green River Basin in Colorado and Wyoming, as well as conventional oil and gas exploration and production operations in Kentucky and Texas.

Corporate Strategy

Emerald plans to drive company value growth through its US Shale strategy. This strategy involves growing EMR shareholder value by establishing its wholly owned US subsidiary as an active, operating, US oil company, focused on unconventional oil in the Rocky Mountain region. Through its subsidiary, Emerald plans to selectively pursue value accretive oil shale acquisitions, accessing US capital markets to fund these acquisitions and related drilling programs.

In the short term, the Company plans to increase value with drilling programs designed to build its reserves and production base with new wells and through additional oil and gas lease acquisitions to consolidate and grow its acreage position in the Rocky Mountains.

In the longer term, Emerald plans to use its positions in the Williston Basin and Sandwash Basin assets as a foundation on which to build a company focused on unconventional resource plays in Rocky Mountain region.

A key part of the US Shale strategy is to establish Emerald's subsidiary as an operating US oil and gas company. The initiation of an operated Bakken/Three Forks development drilling program on its Dunn County, North Dakota assets toward the end of 2012 will establish Emerald as an active US operating company in its own right. Together with its ongoing participation in non-operated Bakken/Three Forks wells in Dunn Co, this will provide a revenue stream from oil production, build the Company's reserves base and position the company to actively participate in unconventional oil and gas deal flow in US.

Emerald plans to appraise and develop its non-operated Sandwash Basin Niobrara shale oil assets located in the Greater Green River Basin, where it holds a 45% interest in the GRBJV, which controls approximately 110,000 gross acres of oil and gas leases (40,500 net EMR). Technological advances in drilling and completion techniques involving hydraulic and horizontal wells, recently applied by other operators in the Sandwash basin have demonstrated the production potential of the Sandwash Niobrara play, with flow rates of several hundred barrels of oil per day. Emerald's plans to apply these successful drilling and completion techniques in existing GRBJV wellbores during the 2012 operating season.