Emerald Bay Energy Inc. announced that the company has completed the initial phase of production testing on the Kuhn 4 well at the company's Wooden Horse project in Southwest Texas. This phase involved perforating only a one foot interval in the Buda formation in order to test the inflow of oil and the potential inflow of formation water. The well has been producing a continuous oil cut for twenty one days and the company's geophysical team has recommended to management that an additional six feet of the formation now be perforated to bring the well fully on production in the coming weeks. Initial production rates for Kuhn 4 will be released as they become available. The company's geophysical team has also recommended to management that the re-entry of Kuhn 3, now be carried out in two phases whereby the company will perforate and test the Upper Austin Chalk formation in the well prior to perforating and testing the Pecan Gap formation. The company will use one of the service rigs owned by its subsidiary PRI to carry out both operations.