Perth, Feb 26, 2008 (ABN Newswire) - Empire Oil & Gas N.L. (ASX: EGO) Drilling Progress Report dated 26 February 2008 for the Period 0600 hrs 25 February 2008 to 0600 hrs 26 February 2008. During the 24-hour period drilled ahead 8 1/2" hole from 1490m to 1630m in the Yarragadee Formation. First reservoir objective predicted at approximately 2085 metres in the Cattamarra Coal Measures.


MORIARY-1 PETROLEUM EXPLORATION WELL EP 426 NORTH PERTH BASIN WESTERN AUSTRALIA

1. Well Name/Permit Moriary-1/EP 426, North Perth Basin, Western Australia

2. This Report is for the Period: The 24 hour period 0600 hours WST 25 February 2008 to 0600 WST 26 February 2008

3. This ASX Release Time and Date: 0930 hours 26 February 2008

4. Report No: 11

5. Spud Date/Rig: 1300 hours 12 February 2008/ADS Rig 6

6. Days since Spud: 14

7. Location of Well: Latitude 290 17' 01.469" S/Longitude 1150 20' 19.081" E

8. Elevation: G.L. 178.32 metres RKB: 182.64m

9. Total Depth: 2550m RKB

10. Targets: Cattamara Coal Measures - 2085m 'F' Sand, 2335m 'J' Sand and 2435m 'L' Sand.

11. Present Depth: 1630 metres at 0600 hours, 26 February 2008.

12. Geological Summary: At 2400 hours 25 February 2008 (the rig reporting period)

Yarragadee Formation:
1490m - 1580m Sandstones and interbedded claystones with thin coal seams

13. Operations since last Report: Run in hole to 1490m at 0300 hours, 25 February 2008. Drilled ahead to 1630m at 0600 hours, 26 February 2008

14. Current Operations: Drilling ahead at 1630m in Yarragadee.

15. Future Operations: Drill ahead in 8 1/2" hole from 1630 metres to reservoir objectives predicted between 2085 to 2580 metres in the Cattamarra.

16. Hydrocarbon Indications: Gas: 1490m - 1580m. Background Gas 8.7 units. Maximum 10.6 units at 1590m.

Chromatograph: C1 1000 to 4200 ppm C2 trace.
Trip Gas: from 1490m 69 units
Note 1: The Yarragadee Formation is not a reservoir objective in Moriary-1.
Note 2: Background gas is encouraging in the Yarragadee for the Cattamarra Coal Measures oil
reservoir objectives between 2085 to 2550m.

17. Prospect Description: The Moriary Prospect is an anticlinal structure, similar to the Mt Horner Oilfield with reservoir objectives the 'F', 'J' and 'L' Sands of the Jurassica-aged Cattamarra Coal Measures. Potential recoverable oil reserves are estimated to be 'F' Sands 3 million barrels, 'J' Sands 4 million barrels and 'L' Sands 4 million barrels.

18. Participants in the well:

Empire Oil & Gas N.L. (Operator) - 40%
Allied Oil & Gas Plc - 25%
Black Fire Energy Limited - 10%
ERM Gas Pty Ltd - 25%

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