Emerald Bay provides operational update

    CALGARY, Sept. 25 /CNW/ - Emerald Bay Energy Inc. ("Emerald Bay" or the
"Company") (TSX Venture: EBY) today reported on recent activities.


    Emerald Bay's recent optimization activities yielded encouraging results.

    -   At Twining, commingling efforts more than doubled the gas rate from
        150mcf/day to over 300mcf/day. Testing results indicate that the well
        is capable of producing between 425 - 700 mcf/day from the
        3 commingled zones. The Company installed a plunger lift system to
        aid in the fluid extraction from the well bore to increase the gas
        rate, and is evaluating a conventional pump jack system to further
        enhance the gas, oil, and condensate production.
    -   The Dorenlee optimization work yielded additional production of
        70 - 100 mcf/day and identified 3 more drilling locations for 2007.
    -   At Nelson, in South Central Alberta, the Company participated
        (6% working interest) in a Viking re-entry program. Based on the test
        results, the Company anticipates initial production rates between
        275 and 350 mcf/day. The tie-in process is currently being conducted
        by the operator.


    Surface location issues in Ferrybank, Nevis, and Joffre have delayed much
of the Company's summer drilling program. Recent results in the surface
negotiations and optimization activities have been instrumental in
re-prioritizing the drilling program. It is anticipated that the Q4 drilling
activities will now commence first at Nevis in mid-October.

    -   At Nevis, surface leases have been acquired for drilling 4 coal bed
        methane (CBM) wells. The proposed locations are directly offsetting
        highly-productive CBM producers. Although a mineral interest owner of
        1% is in the process of being force-pooled causing some unexpected
        delays, management of the Company is optimistic that this will be
        resolved quickly. The Company is also moving forward with the
        pipeline license in conjunction with the well licenses.
    -   At Dorenlee, the Company recently tested the Horseshoe Canyon
        formation to determine economic viability for future development.
        This successful test has setup 3 additional CBM drilling locations
        for Q4 drilling.
    -   At Kelsey, Emerald Bay and its partner Just Freehold Energy Corp.
        successfully acquired a section of land which currently off-sets a
        producing well at 8-13-44-18 W4. A seismic program is currently being
        planned for immediate acquisition over the newly acquired section
        plus an additional section currently under farm-in negotiations. The
        Company expects to confirm an 1,100 meter test well to be drilled in
        the 4th quarter.
    -   At Ferrybank, the Company continues to negotiate with the surface
        owner to begin drilling in 2007. Upon completion of surface lease
        negotiations it is the Company's intent to drill a 1500 meter test
        well directly offsetting Glauconitic and Cardium producers. Drilling
        targets include the Ellerslie, Glauconitic, and Cardium formations.
    -   At Joffre, the Company continues a lengthy negotiation process to
        acquire surface locations for CBM drilling on 2 sections in close
        proximity to the city of Red Deer. The Company anticipates drilling
        4 to 8 CBM wells in the Joffre area in Q4. Two additional sections
        are currently under review by Emerald Bay to determine if they are
        candidates for 2007 drilling.

    In other work programs, the Company is currently re-evaluating seismic
data in the South Texas lands previously announced. The results of recent
activities in the area have been very beneficial in helping the Company plan
for future development. While the scope of this development is yet undefined,
management of the Company feels it must exhaust all geophysical due diligence
efforts before commencing drilling operations in South Texas.


    Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas
producer with production properties in Western Canada. The common shares of
Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please
visit our website at www.emeraldbayenergy.com.

    If you would like to receive press releases via email please contact
catarina@chfir.com. Please specify "Emerald Bay press releases" in the subject

    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein.

    BOEs and BOEPD may be misleading, particularly if used in isolation. A
    BOE conversion ratio of 6 mcf: 1bbl is based on an energy equivalency
    conversion method primarily applicable at the burner tip and does not
    represent a value equivalency at the wellhead.
    Forward-Looking Statements
    This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Forward looking statements are statements
that are not historical facts and are generally, but not always, identified by
the words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," 'projects," "potential" and similar expressions, or that events
or conditions "will," "would," "may," "could" or "should" occur. Information
inferred from the interpretation of drilling results may also be deemed to be
forward looking statements, as it constitutes a prediction of what might be
found to be present when and if a well is actually developed. Forward-looking
statements in this document include statements regarding the Company's
exploration, drilling and development plans, the Company's expectations
regarding the timing and success of such programs. Factors that could cause or
contribute to such differences include, but are not limited to, fluctuations
in the prices of oil and gas, uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production and timing
of development activities, competition, operating risks, acquisition risks,
liquidity and capital requirements, the effects of governmental regulation,
adverse changes in the market for the Company's oil and gas production,
dependence upon third-party vendors, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission.

    %SEDAR: 00008937E

For further information:

For further information: Emerald Bay President, Shelby D. Beattie, by
telephone at (403) 262-6000 or by email at info@ebyinc.com, or CHF Investor
Relations: Robin Cook, Account Manager, (416) 868-1079 x228, robin@chfir.com;
Barry Leung, Broker Relations Account Manager, (416) 868-1079 x247,

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