Empire Oil & Gas (ASX:EGO) MORIARY-1, EP 426, Petroleum Drilling Progress Report No 16

Perth, Mar 4, 2008 AEST (ABN Newswire) - Empire Oil & Gas N.L. (ASX: EGO) Drilling Progress Report dated 4 March 2008 for the Period 0600 hrs 3 March 2008 to 0600 hrs 4 March 2008. Present depth as of 0600 hours, 4 March 2008 is 2210 metres. During the 24-hour period drilled ahead 8 1/2" hole from 2152m to 2210m. Top Cadda Formation intersected 2156m. Top ‘F’ sand Cattamarra reservoir predicted 2416m.

Future Operations: Drill ahead to the Cattamarra reservoir objectives.

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 3 March 2008 to 0600 WST 4 March 2008

3. This ASX Release Time and Date: 0930 hours 4 March 2008

4. Report No: 16

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

6. Days since Spud: 21

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.

11. Present Depth: 2210 metres at 0600 hours, 4 March 2008.

12. Geological Summary: At 2400 hours, 3 March 2008 (the reporting period)

2125m – 2155m - Sandstone well cemented (Basal Yarragadee)
2155m - 2185m - Claystone, sl.calcitic, dolomite fragments, pyritic in part (Cadda Formation)
Top Cadda Fm 2156.5m
Top Cattamarra Formation 'F' Sand predicted at 2416m

13. Operations since last Report: Drilled ahead 8 1/2" hole from 2152 to 2210m @ 0600 hours, 4 March 2008. Slow drilling in hard sandstones and claystones of Cadda Formation.

14. Current Operations: Drilling ahead at 2210m @ 0600 hours, 4 March 2008.

15. Future Operations: Drill ahead in 8 1/2" hole from 2210 metres to reservoir objectives in the Cattamarra.

16. Hydrocarbon Indications: Gas Peak: 2127m - 2186m, 2 units (Slow drilling) Chromatograph Reading: 2127m - 2186m, 100 to 500 ppm C1.

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%

Contact

Managing Director Mr Craig Marshall TEL: +61-8-6389-2687