Emerald Bay to sell first 700 bbl of oil produced from Kuhn 3, Kuhn 4 wells

CALGARY -- Emerald Bay Energy Inc. has announced that the Company is selling the first loads of oil production from the Kuhn 3 and Kuhn 4 wells. Since pumping began at Kuhn 3 last week the well has produced over 500 bbl of oil and is averaging 62 bpdof oil production. At Kuhn 4, over 200 bbl of oil was produced during the intermittent testing of the 1-ft interval in the Buda formation. The additional 5-ft perforating operation was successfully completed last week and the Kuhn 4 well is now flowing back the water and acid from the operation at a rate of 40 bpd.

Shelby Beattie, president and CEO of the Company, commented, “We acquired the Wooden Horse property as an Austin Chalk and Edwards play. During our exploration drilling to date we have also identified other possible hydrocarbon bearing zones in the Buda, Georgetown and Pecan Gap formations. We are very pleased with the production rates we are seeing from the Kuhn 3 well and we are moving forward with plans to drill our next two wells at Wooden Horse as Austin Chalk targets. Our geophysical team is in the final stage of positioning the Kuhn 5 and Kuhn 6 locations updip from the Kuhn 3 well and closer to the fault system. We drilled Kuhn 4 as an Austin Chalk target, but the well has been completed to this point in the Buda formation. We have had some positive initial tests results from the Buda in Kuhn 4 and we perforated an additional five feet of the zone last week. We are currently flowing the acid and water back from the perforating operation at a rate of 40 bpd. We are anxious to see what Kuhn 4 will produce in the coming weeks. With the current oil price over $64/bbl, and the low operating costs we have at Wooden Horse, these wells will provide an excellent return on investment to the Company.”