Emerge Oil & Gas Inc. is providing an operational update including drilling results and updated guidance.

Heavy Oil Drilling Program

Emerge is pleased to announce a successful heavy oil development drilling program at Primate, Saskatchewan where 6 (6.0 net) wells, including 1 (1.0 net) service well, have been drilled as part of the fall program which commenced in mid-September. We are pleased to report that oil production now exceeds 800 bbl/d (based on field estimates) from the Primate field from a total of 6 wells, with 2 additional wells awaiting completion. Individual wells at Primate are producing at rates of 100 to 160 bbl/d which is 2 to 4 times the typical 40 to 50 bbl/d, vertical heavy oil producer in the Lloydminster area. The wells produce from the McLaren sandstone which averages 5 to 6 meters of oil pay. Emerge shot a 72 km 2D seismic program in Q3 and has identified 15 to 20 additional locations on 8.25 sections of 100% owned land. Emerge plans to drill an additional 6 to 8 heavy oil wells during the remainder of 2011 in the Primate and Freemont areas. Emerge continues to shoot additional seismic and evaluate land in the area of the Primate development.

Viking Light Oil Drilling Program

Pursuant to a farm-in agreement entered into in January 2011, Emerge initiated its drilling program in late June 2011 for the 5 (3.5 net) horizontal commitment wells targeting the Viking formation in the Kirkpatrick Lake area, along the Halkirk/Coronation Viking trend. Under the terms of the farm-in agreement, Emerge incurs 100% of the capital costs (through to equipping) during the earning phase and will earn a 70% working interest in the wells. All 5 wells were drilled by mid-August 2011, with average horizontal lengths of 1,050 meters each with the completions commencing thereafter. All of the horizontal sections encountered up to 2% free oil returns in the mud tanks during drilling. Four of the five wells have been fracture stimulated and currently three of the wells have been tied-in and placed on initial production. The fourth well is expected to be tied-in and on production by the end of October and the fifth well is awaiting completion.

Of the first 3 wells tied-in and placed on production, the fracture stimulation operations went smoothly with all breakdowns and sand placements getting away in typical fashion. Average breakdown pressures of 20 to 25 mPa were observed with 15 tonnes of 20/40 mesh sand per stage being placed using a 20% nitrogen-energized warm water delivery system. Post-frac mechanical issues were encountered in the first 2 wells resulting in clean-out and flow-back restrictions that are currently limiting inflow to the wells. Each of the first 2 wells are exhibiting low rate oil and natural gas and are deemed to be mechanically damaged with down-hole apparatus and/or frac sand obstructing inflows along the horizontal portion of the well.

The third horizontal well at 3-14-33-10W4 was placed on production on September 22 and is exhibiting the best inflow of the three wells at 65 boe/d, 40% oil. The well is currently on clean-up and is producing at a total fluid rate of 160 bbl/d with oil cuts increasing at 1-2% per day since being placed on production. The 3-14 well directly offsets the first two horizontals which currently have mechanical inflow problems. This is a significant development for the Kirkpatrick Viking oil resource play in that oil and natural gas production have been established with oil cuts increasing relative to overall fluid rates as the well cleans up. Current recorded reservoir pressures of 4,500 kPa and strong fluid rates in the 3-14 well indicate strong reservoir drive for commercial production. Although too early in the production history, the 3-14 well exhibits similarities to our successful Coronation oil well drilled in Q1 2011.

Initial production results from the Viking are still in the very early stages and have been delayed due to operational matters resulting in insufficient production history for proper evaluation of this resource play. Management remains positive on the Viking play with oil production, good inflow and reservoir pressure being established from the Viking zone. We will continue to evaluate the potential based on these initial 5 wells through the remainder of Q4 2011. Emerge currently owns 22 gross sections of land at Kirkpatrick lake comprised of 12 sections at 100% WI and 10 sections at 70% WI.

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