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EMPIRE ENERGY
4500 College Blvd STE 240 LEAWOOD KANSAS USA 66211 1.877.663.2310 Toll Free 1.913.663.2310 Local 1.913.663.2239 Facsimile www.empireenergy.com |
GREAT SOUTH LAND MINERALS LIMITED
Level 3, 65 Murray Street Hobart TASMANIA AUSTRALIA 7000 GPO BOX 1603 Hobart TASMANIA AUSTRALIA 7001 +613.6231.9339 Phone +613.6231.9625 Facsimile email: reception@gslm.com.au; www.gslm.com.au |
WELCOME TO
EMPIRE ENERGY CORPORATION INTERNATIONAL
| A Letter from CEO and Founder, Malcolm Bendall |  |
Dear Empire Energy Shareholders:
I would like to take this opportunity to update our investors.
It is important that all investors realize that Empire Energy (EEGC.OTC) has made significant strides toward our immediate and long term goals of drilling for commercial quantities of oil and gas in Tasmania; one of the worlds' last major virgin frontier basins.
We have recently filed our 10Q Quarterly Report which is being integrated with our Registration Statement and Rights Offering in order to achieve final approval from the SEC.
I believe it is important to begin by stating there has been inaccurate information circulating among the rumor mills regarding the status of Empire's designated rights as they pertain to the SEL 13/98 special exploration license. The license was granted in 1999 on the basis of an agreement which centered on both financial and work commitments. Both components of this license agreement have been met and the financial commitments that were made by Empire have been surpassed over the period of the 10 year SEL 13/98 tenure.
Remember that the goal of this initial program was to prove that within the Tasmanian Basin there existed dome structures capable of pooling oil generated by the natural processes of distillation. When the SEL 13/98 license was granted, no source rocks or hydrocarbon structures had been identified. Additionally, only Empire through its wholly owned subsidiary Great South Land Minerals (GSLM) was willing to invest the capital and take the risks to execute the scientific research required to discover the dome structures that we believed were present.
We were successful in those endeavors and we now intend to initiate a drilling program based on the seismically defined tops of those dome structures that we found.
The total capital investment of Empire and its subsidiary GSLM over the duration of the SEL 13/98 license has exceeded US$40 Million (approximately AU$50 Million). Empire's current share price represents less than one tenth of the dollars invested to date on this project. Professionals in the industry familiar with Empire's work programs contemplated that the discovery of those domes should have resulted in a 10 x multiplier as it would affect our share price. However, current global economic conditions have way laid the plans and expectations of many commercial enterprises. I would therefore suggest that this situation is not all that unusual and yet presents an excellent opportunity for new and existing Empire shareholders.
According to information obtained from Mineral Resources Tasmania (MRT), Empire has been informed that it qualifies for licensing and expanded permitting over these newly discovered structures by the granting of either exploration licenses and/or mining leases. Any information concerning SEL 13/98 to the contrary is false and misleading. To be crystal clear, Empire and GSLM have completely and thoroughly met all the initial goals established for the work commitment portion of the SEL 13/98 agreement and have gone so far as to exceed all capital investments as necessitated by that same agreement.
Because of the extensive scientific research (primarily seismic) by industry qualified experts, we believe that Tasmania's virgin basin contains massive amounts of commercial quantities of oil and natural gas. Our extensive research has identified in excess of fifteen structures, all capable of pooling commercial quantities of oil and natural gas. These findings have been independently validated by RPS Energy, one of the world's leading suppliers of independent oil and gas evaluations. This report can be found by visiting our website at www.empireenergy.com under the tab of "Project Update".
More than at any time in our history, we now believe that we are very close to realizing the rewards of our efforts. Empire has continued to move forward and exhibit progress on many fronts in a global financial environment that has been the worst we have seen in the seventy years since the last depression. The market conditions have been so difficult that they have created problems and difficulties even for long established companies.
The process of sourcing funding is continuing and includes the potential fifty million dollar line of credit facility extended to me and which was announced in our press release on June 12 2009. I personally intend to exercise my full rights as a shareholder for the benefit of Empire's drilling program via the rights offering. It is yet another venue in which I can demonstrate my total commitment to the success of this company.
Funding placement is planned contingent on the completion of the registration statement and rights offering. The rights offering will provide a regulated environment which extends to all shareholders an equal opportunity to participate in the future of this company and we anticipate that it will be fully subscribed.
This process governs and protects all Empire Shareholders, Directors, Staff and Officers from any possible perceived improprieties. The Rights Offering creates an environment which allows equal opportunity and protection for Empire Share Holders, Directors, Staff and Officers to participate.
Empire continues its dialog with drilling company, Hunt Energy, about its ongoing operations regarding the drilling program and other pertinent issues. The Hunt drill rig remainsecured and stacked in Launceston, Tasmania, Australia and is available to remobilize to the Bellevue site as soon as funding is available. Empire views all reports and rumors to the contrary as false and misleading. There has been a sustained internet campaign to create fear among shareholders by those who would wish to selfishly profit from negative rumors.
History has taught us that in difficult times creative action, and even personal sacrifice, is often required for success. I have found that reacting to the present global financial crisis has been no exception. Please be advised that in the last two months I have personally contributed in excess of AUD $150,000.00 towards payment of GSLM wages and expenses. In addition, I have personally paid for costs and fees related to the Registration Statement. I tell you this because I want you, the investors, to understand that I have a total commitment to the success of Empire Energy.
It appears now the global markets are showing positive signs of recovery and oil prices have risen substantially. Improving global markets (along with higher prices for oil) are conditions expected to benefit Empire as we move forward. And regardless of the intermediate or long term prognostications for the global economy, oil and other hydrocarbons are going to continue to play a dynamic part of any scenario.
Furthermore, after long and careful consideration, I have decided to bring into Empire a very valuable, viable, and important proprietary technology that will significantly address and impact a critical element of the energy industry. Empire is going to receive the commercial rights for Flare Gas Technology as this proprietary technology will be applicable to the energy markets of North and South America. These markets represent a substantial percentage of the global energy markets.
This technology collects a high percentage of gas normally burned off at the well head or injected into the ground or burnt off at refineries and retains it as usable liquid fuel. This addresses a long standing situation where this gas has been lost to burn-off wasting a very valuable asset.
The immediate and major benefits from this technology are both environmental and financial in nature. A substantial ongoing revenue stream will be generated for Empire while protecting the environment from an enormous hydrocarbon footprint. We estimate North and South America currently flare in excess of 6 Billion cubic meters of gas per annum. However, due to local, regional, and global politically sensitive impacts, these figures are difficult to precisely substantiate and will be the subject of considerable investigation in the immediate future. We estimate if this gas was converted into liquid, it would represent in excess of US$2 Billion worth of usable liquid fuel per annum.
Remaining global regions and markets for this Technology will be retained by the parent company. Valuation, validation, commercialization, and implementation are now being quantified by an outside party to set commercial terms for the transaction. Results contained in this report are expected to be quite substantial on an annualized basis. Once this Technology has been brought into Empire (and the Valuation Report has been completed for the regions of North and South America) a press release will be issued. This is a very significant and positive development for Empire Energy and is expected to significantly impact the bottom line and future potential growth.
I believe my actions speak volumes as they represent my confidence in Empire Energy and my personal commitment to the success of this company going forward. Priority one remains drilling and developing our Major Virgin Basin in Tasmania.
Once the regulatory environment is established under which shareholders can legally exercise their right to participate in the upcoming rights offering and I also have exercised my initial rights allocation, I plan to support the full subscription of any remaining or unexercised rights. Fully subscribed, our rights offering will raise Empire a total of U.S. $9 Million (AU$11 Million). This alone will be enough to complete drilling at Bellevue and another selected site.
Many investors have asked, "When will news of funding and drilling activity be announced?" Our progress with applications to expand our Tasmanian properties under license and the rights issue and registration statements have understandably been over-shadowed by this question.
The drilling program is actually very much connected to the process involved with the successful completion of the funding. That process is well under way and expected to reach completion in the near future. On the first of September, the Tasmanian winter season officially ends and warmer weather will begin to return. The climate at the altitude of the Bellevue drill site in winter demanded winterizing applications for equipment. And of course there were safety issues for personnel with which to contend. Upon completion of the funding process, improving weather conditions may result in a more rapid redeployment of the rig at the drill site.
In addition, we are not content to simply wait or depend on any one funding source or program. We are moving forward with several opportunities for Empire. I believe that the current global markets demand that we work diligently on all opportunities and sources favorable to our overall goals and complete drilling program.
During this time, Empire has experienced the largest exchange of shares to new ownership in the history of the Company. I would like to personally take a moment to congratulate all of our new and existing shareholders who invested and took advantage of the significant opportunities presented by Empire during this period.
So again, welcome all new shareholders to Empire and a special thank you to all of our long-standing shareholders who have shown such extraordinary confidence, patience, and support for this company. I believe you will be richly rewarded for your decisions.
I am very pleased with the current prospects and opportunities now present for Empire Energy. Press releases will be posted on these developments as they become material events. In the interim, please be aware that the very important process for the recently announced funding moves forward toward completion.
I ask for your continued patience and truly appreciate your support during this most important time of Empires ongoing development.
Sincerely
Malcolm Bendall, CEO
Empire Energy Corporation International
This letter 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 3 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.
| CEO Archive | |
| CEO Update December 2008 | |
| CEO Update March 2009 |
