Thursday August 20, 2009, 12:01 am EDT
Empire Total Expenditure Exceeds AUD $50 Million (US $40 Million) on SEL 13/98; Registration Statement and Rights Offering to Raise AUD $11 Million (US $9 Million) Awaiting 10Q Updates and Final SEC Approval
LEAWOOD, Kan.--(BUSINESS WIRE)--Empire Energy Corporation International (OTCBB:) EEGC - News) this week cited total expenditures, meeting the license conditions, have now exceeded AUD$50 Million (US $40 Million) on SEL 13/98 and an update of the Registration Statement and Rights Offering to raise an additional AUD$11 Million (US$9 Million) is awaiting the recently filed 10Q updates and subsequent approval from the US Securities and Exchange Commission (SEC).
CEO Malcolm Bendall also noted that the total expenditure, meeting the license conditions, in excess of AUD$50 Million by Empire on SEL 13/98 far exceeds all capital expenditure requirements and has met all work commitments set forth for the ten year period concerning SEL 13/98. Furthermore, he noted that exploration work and capital invested by Empire has led to the discovery of at least fifteen identifiable dome structures previously unknown before Empire's work. Additionally, these identified dome structures are believed to be capable of pooling significant commercial amounts of oil, over one billion barrels potential in the Bellevue structure alone. It is also notable that these findings have been further supported by a global independent energy research firm, RPS Energy, a leader in their field.
The process of sourcing funding is continuing and includes the potential fifty million dollar line of credit facility extended to Mr. Bendall, announced in the press release, on June 12, 2009. In this same press release Mr. Bendall has stated he "intends to use the proceeds of this financing to take down his Rights in the Rights Offering currently under review by the United States Securities and Exchange Commission (www.sec.gov) followed by taking down his over allotment option to the extent that other Rights Holders fail to exercise." The rights offering will provide a regulated environment which gives all shareholders equal opportunity to participate in the future of the company and is expected to be fully subscribed. The Rights Offering will proceed upon completion of the registration statement and approval by the SEC. If fully subscribed, the rights offering would raise AUD$11 Million (US$9 Million) for our drilling program and should enable us to drill the Bellevue and Thunderbolt sites.
Empire continues to talk with drilling company Hunt Energy about its ongoing operations regarding the drilling program and other issues. The Hunt rig remains stacked in Launceston, Tasmania, Australia and is available to remobilize to the Bellevue site as soon as funding is available.
As an additional matter, Mr. Bendall has offered, after long and careful consideration, to bring into Empire the North and South American rights for a very significant proprietary technology that is expected to significantly address and impact a critical element of the energy industry globally. This technology involves high percentage recovery of flare gas as liquid fuel which would otherwise be burned-off into the environment. This flare gas burn-off represents a huge loss in usable fuel and takes place at well heads and refineries worldwide. 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. This is a very significant and positive development for Empire and is expected to significantly impact the bottom line and future potential growth. 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 hard to substantiate and will be the subject of further considerable investigation. We estimate if this was converted into liquid, this would represent in excess of US$2 Billion worth of usable liquid fuel per annum.
Mr. Bendall will be posting shortly on the Empire's web site a letter to Empire shareholders discussing, in more detail, SEL 13/98 and other positive developments. We encourage all our shareholders to visit our company website at www.empireenergy.com and read Mr. Bendall's letter.
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 International, please refer to 10-K and 10 Q reports filed with the U.S. Securities and Exchange Commission.
Contact:
Empire Energy Corporation International
Malcolm Bendall, 877-663-2310
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