Emerald Oil, Inc. (EOXLQ)

[Timothy Smith]

EUR Revision could drive future upside: The recent operated completions by the company have demonstrated EURs that are trending above its estimated 600mboe type curve.

With additional results, the company could look to revise its type curve upwards to as high as 750mboe per well. This revision could be a driver of value moving forward if the well performance continues to prove repeatable.

Costs will remain a key focus of investors going forward: Higher than expected LOE and G&A costs were a key driver of the 2Q13 miss.

As production ramps up over the coming quarters, it is my expectation that these costs should substantially decrease on a per unit basis.

As part of proving it can be a successful long term operator, Emerald will need to demonstrate this cost control moving forward.

The full two rig program begins to ramp: The next six to nine months will prove crucial for Emerald as the company’s two rig program hits its full stride.

If operations continue smoothly, production should begin to substantially increase.

The challenge will be balancing the increasing work load and being able to quickly overcome any unforeseen challenges.