LEAWOOD, Kan.--(Business Wire)--
Empire Energy Corporation International (OTCBB:EEGC) today
announced, along with its wholly owned Australian subsidiary Great
South Land Minerals Ltd. (GSLM), the following business update:
Empire has entered into a Mobilisation (Move on Site) Agreement
with our oil and gas drillers, Hunt Energy and Mineral Co. Australia
Pty Ltd, and its principals, under which Empire will issue as
security, 20,000,000 Empire shares of restricted common stock at a
redemption price of USD$0.15 cents/share. These shares will be
included in the registration statement that we are currently
preparing. At Hunt's option, the shares may be redeemed in part or in
full and applied as payment toward the costs of drilling and
mobilization of the Hunt Rig #3. Upon payment of current billings,
Hunt will move on-site at Bellevue #1 to commence and finish drilling
operations up to a depth of 9,200 feet (or 2,800 metres). Once the
Bellevue #1 hole is completed, the rig is intended to be mobilized to
the Thunderbolt #1 hole. Hunt will have the option to apply the value
of the shares to the mobilization and drilling costs or accept full or
part payment by Empire. Current billings total about AUD$600,000 for
Hunt and an additional AUD$200,000 for transport of equipment to the
site.
Proceeds of AUD$3.9m from the AUD$5M loan note between Empire and
Smartwin International Limited have been utilized to transport the
Hunt Energy Rig #3 to Tasmania and to complete top-hole drilling
performed by local drilling contractor Spauldings to a depth of 272
metres for oil and gas within GSLM's 15,000 sq km license area SEL
13/98 on the Bellevue #1 drill site in Tasmania's Central Highlands.
The balance currently owing under the SmartWin loan agreement of
AUD$1.1m, once released, is intended to be used to pay for the
mobilization and ongoing drilling costs.
The previously announced SmartWin MOU contains an exclusive option
for SmartWin to commit an additional AUD$40 million and cancel the
AUD$5 million note in consideration for a 50% stake in a Joint Venture
with GSLM on its SEL 13/98 license area. Empire's Denver-based US
attorney has recently visited colleagues and counterparts in Hong
Kong, Melbourne and Tasmania and a near-final SmartWin JV agreement
has been drafted and delivered to SmartWin for review. Additional
details on the company's anticipated Joint Venture will be issued upon
finalization of that agreement.
Several parties have been approached in London by Libertas Capital
Group, Plc. to invest by private placement. We are currently in
negotiation with prospective investors in London that may invest a sum
of up to GBP 1.5 million (AUD$3,649,400 @ current AUD/GBP exchange
rate of 2.4326), subject to final negotiations.
Victor Sula, Ph.D of Beacon Equity Research has completed a review
and update of Beacon's previously issued Market Analyst Report, which
was released yesterday, October 30, 2008 through targeted media in the
United States and internationally. This update has been posted on the
Beacon (www.beaconequity.com) and Empire (www.empireenergy.com)
websites.
Because we expect to be drilling through coal seams in both the
Bellevue #1 and Thunderbolt #1 wells, Empire is also negotiating the
terms of an additional license for the Exploration of Category 4
Petroleum products such as Coal Seam Methane, pending approval of an
application made recently to Mineral Resources Tasmania, the relevant
Tasmanian State Government authority.
Founder and C.E.O. Malcolm Bendall said, "I am pleased to have the
support of our drillers, Hunt Energy, and hope that Hunt will apply
the full AUD$4,455,000 toward the drilling of Bellevue #1 and
Thunderbolt #1. I am currently in London to coordinate fundraising
operations with Libertas Capital Group Plc and to deliver the results
of the recent RPS report, which includes an independent potential
resource audit, and to report the progress of drilling to date."
Empire Energy Corporation is an international oil and gas
exploration company, focusing on developing assets in one of the
world's last virgin basins and to become a leading low-cost finder of
hydrocarbons. The Company is currently operating in Tasmania's central
and northern basins.
This press release contains forward-looking statements based on
our current expectations about our company and our industry. You can
identify these forward-looking statements when you see us using the
words such as "expect," "anticipate," "estimate," "believes," "plans"
and other similar expressions. These forward-looking statements
involve risks and uncertainties. Our actual results could differ
materially from those anticipated in these forward-looking statements
as a result of our ability to complete required financings and other
preconditions to the completion of the transactions described herein
and Empire's ability to successfully acquire reserves and produce its
resources among other issues. We undertake no obligation to publicly
update any forward-looking statements for any reason, even if new
information becomes available or other events occur in the future. We
caution you not to place undue reliance on those statements. For a
more detailed discussion of risks and other factors related to Empire
Energy Corporation Int'l, please refer to its 10-KSB and 10 Q reports
filed with the U.S. Securities and Exchange Commission.
Empire Energy Corporation
John Garrison, 877-663-2310
President
Copyright Business Wire 2008
