Corporate Objective

In pursuing the Company’s principal objective to become a growth focused oil and gas producer and explorer with operations based in the USA and Western Australia, the Board is committed to:

• Applying the Company’s funds prudently and efficiently to provide positive and sustainable returns to Shareholders in accordance with robust and well considered business plans;
• Maintaining the highest levels of corporate governance in conducting Emerald's business
• Adopting high standards of occupational health and safety, environmental management and ethics;
• Recognising and honouring all legal obligations to non-Shareholder stakeholders including employees, joint venture partners, customers, traditional owners and the community as a whole;
• The investment objective of the Board is to identify opportunities that will enhance long term shareholder value.

Strategy
Emerald's company strategy is to establish a substantial revenue stream with production from its current assets and to build on this base by selectively adding quality exploration and development assets in a closely managed growth portfolio. 

We intend to accomplish this by identifying areas of interest, joint-venturing with similarly-minded industry partners and then leveraging local sub-surface understanding acquired to consolidate substantial equity positions in these areas.
Emerald has secured a number of gas and oil interests ranging from producing assets to exploration acreage in several proven hydrocarbon producing regions of the USA and in Western Australia. The Company now seeks to quickly consolidate its production base from current gas and oil development assets and to create growth potential by selective exploration and development opportunities in defined areas of interest.
The Company currently holds interests in a number of assets across various phases of the petroleum asset life cycle:
1. Exploration opportunities:

• Canning Basin Permits, Western Australia - EP104/R1 (12.75% WI); EP463 & TP24 (100% WI); WA-419-P (100% WI)
• NW Alice area

2. Field Appraisal/Development opportunities:

• Kentucky Gas Development project, Kentucky
• Big Sandy Gas Development Project, West Virginia
• NW Alice discovery appraisal and field development, Texas

3. Producing assets:

• 8 gas well re-completion program (4 wells currently producing), Kentucky

Emerald's currently producing assets in Kentucky are expected to deliver value in the short term, with a focus on building cashflow with production from re-completed gas well. Subsequent development of a substantial gas reserve base in Kentucky is planned from further development drilling under existing agreements. 
The next stage in Emerald's growth plans will be to deliver one or more of the Field Appraisal /Development opportunities through 2010 and 2011. 
Emerald's portfolio is currently weighted toward gas and the Company is actively seeking to selectively take positions in high quality, low risk, oil plays.

 

Glossary of terms

Bcf:	billion cubic feet
Bbl:	barrel of oil
BTU:	British Thermal Unit
ft:	feet
Km:	kilometres
Mcf:	thousand standard cubic feet of gas
Mcfd:	thousand standard cubic feet of gas per day
MMcf:	million standard cubic feet of gas
MMcfd:	million standard cubic feet of gas per day
NRI:	Net Revenue Interest = WI x RI
RIL	Revenue Interest - the % interest in production revenue available after deduction of  royalties and overriding royalty interests
TD:	total depth of well
WI:	Working Interest