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Re: EMR - Emerald Oil and Gas

Morning All

16 August 2007

PANDURA PROJECT DRILLING CONTRACT SIGNED

Emerald Oil & Gas NL (“Emerald”) is hereby announces that the operator of the

Pandura Prospect, Daytona Energy Corporation (TSX Venture: DTE) has signed a

drilling contract with Pioneer Drilling Co (PDC-Amex) to drill the Kathleen Marie

#2 well in Webb County, Texas. This well will be drilled to 8,500 feet to test

prospective Wilcox age sands and is expected to spud in late August 2007.

Emerald is pleased that drilling at the Pandura project, located in Webb County

USA, will soon be under way, with a reputable drilling contractor. Pioneer Drilling

will drill the well through open-hole logging on turnkey contract basis. This

approach reduces the mechanical drilling risk to the partners in the well, and at

the same time, is significantly less expensive than our estimated costs to drill on

day rate basis at the beginning of 2007.

Emerald will have earn a 15% working interest in the well by paying 21.18% of

the dry hole cost and 15.75% of the completion costs of the first well on the

project.

For more information please contact:

Emerald Oil & Gas NL Tel: +618 9482 0510