Emerald Bay Energy, Inc. (Emerald Bay) is engaged in the business of exploration, development and production of crude oil, natural gas and natural gas liquids principally in Alberta and Texas. The Company is also developing a lateral drilling technology. During the year ended December 31, 2007, the Company participated in drilling seven gross wells as part of a drilling program at Nevis, Ferrybank, Nelson and Joffre, Alberta. The Company has interest in the Twining property (40% to 80% working interest), the Kelsey property (50% working interest), the Dorenlee property, the Ferrybank property and the Nevis property, all of which are located in Alberta. In South Texas, the Company has interest in the Somerset and Chittam properties. In November 2007, Emerald Bay sold it’s non-operated, minority interest at Clive, Alberta to Fairborne Energy Ltd. Production from the property was approximately 12 barrels of oil equivalent per day.