Emerald Bay announces initial test results at Kelsey & Medina County

Emerald Bay Energy Inc. today reported on recent testing activities at Kelsey, Alberta and Medina County, Texas.

KELSEY, ALBERTA

Emerald Bay has recently perforated and tested a New Pool, Basal Belly River natural gas well in Township 43, Range 18 at Kelsey, Alberta (projected 19% working interest). During the 48 hour flow test the Basal Belly River flowed approximately 265 thousand cubic feet of gas per day on a 32/64ths-inch choke with 1800 kPa flowing casing pressure. Recorders have been placed to measure build-up pressure for a 10 day cycle.

The tie-in location has been identified with plans for pipeline construction to begin immediately after surface rights and pipeline permit are acquired. The Upper Belly River formation will remain behind casing at this point for future development.

MEDINA COUNTY, TEXAS

Testing activities continue on the Oscar C 1EB well (projected 75% working interest) that was recently drilled to a measured depth of 1160 feet, and perforated in the Olmos formation at 952 feet. After perforation, the well was fracture-stimulated and started immediate flow-back. Conventional lifting equipment has been recently installed, along with surface facilities to recover fracture fluid and initiate production testing operations. After fracture fluid recovery, the well is expected to produce between 10 and 15 barrels of oil per day, putting The Company’s finding and development cost well under the projected $8,000.00 per boe. Nine additional wells are currently being surveyed by The Company for drilling permits off-setting the Oscar C 1EB wellbore.

Commenting on the testing results, Shelby Beattie, President of Emerald Bay, said: “We are definitely pleased with the early results of the Kelsey and Oscar C testing operations. These two wells would give us nine commercial wells in a row as we move to our fall drilling operations. We expect this trend to continue as we focus on low-risk, in-fill development projects in Alberta and Texas.”