Friday February 20, 12:46 pm ET
Empire Reports New Director and AUD$10 Million Financing
LEAWOOD, Kan.--(BUSINESS WIRE)--Empire Energy Corporation International (OTCBB:) EEGC - News) today announced the progress of financing and resumption of drilling on the Bellevue #1 well site.
After mobilizing equipment on site in December 2008, the Hunt Oil Rig #3 has now been inspected for safety and engineering prior to commissioning planned in the week commencing 19th January 2009. GSLM has submitted a copy of the Hunt #3 Rig compliance report and third party assessment to the Tasmanian authorities as a pre-requisite for approval to undertake drilling activities. The Rig camp and surrounding infrastructure has been upgraded to accommodate 30 personnel, including drill supervisors, support team, staff and contractors. The Hunt Rig #3 mast was raised prior to the Christmas break in readiness for the 2009 operations. The crew is expected to return from Christmas holidays mid-month with the intention of drilling immediately.
Empire Energy is pleased to announce that GSLM has secured the services of some very experienced personnel for its drilling operations. Todd Goebel BSc (Chemical Engineering) has accepted the newly created position of Production Development Manager and will be facilitating drill stem testing and the evaluation of reserves. He has the skills and experience to take a well to production status. We have also interviewed a candidate to take up the position of Drilling Supervisor between his overseas postings as Senior Drilling Supervisor in Ukraine and Pakistan. He has 13 years oil and gas drilling experience and the necessary vocational qualifications to act as company representative on site. We have found another candidate suitable to manage the sale and distribution of our anticipated production. Edward McNally RDA BSc CPEng has been contracted as Drilling Engineer for the 2009 oil and gas drilling program. He has arrived in Hobart and is performing a comprehensive review of operational aspects of the project. McNally said, "I have reviewed the program and found comprehensive costings and strategies in place to complete the first well in the planned timeframe and concluded that the targets are valid and obtainable."
Smart Win International Limited has resumed negotiations with the company to provide the remaining AUD$1.1 million funding outstanding from the AUD$5 million loan note agreement. Following recent drilling mobilization activities, the companies have engaged in a financial due diligence process to be satisfactorily completed prior to advancement. Following the conclusion of these negotiations (under the terms of the previously announced SmartWin Memorandum of Understanding) SmartWin may commit to an additional AUD$40 million, cancelling the AUD$5.0 million note in exchange for a 50% stake in an exclusive Joint Venture with GSLM on its SEL 13/98. A draft agreement is the subject of current negotiation between parties. It is the intention of both parties to finalize the terms of the agreement.
CEO, Malcolm Bendall stated, "I have returned to Tasmania after a five year absence to see that this oil and gas development project is completed. We are excited to be drilling the first oil and gas well on the island of Tasmania. We are looking forward to reporting positive results of that drilling."
Empire's proposed rights issue announced in December 2008 will allow the purchase of one share of Empire common stock for a price of US$0.07 for each two shares held by a shareholder as at close of business December 18, 2008 (Record Date). Documentation will be sent to all existing eligible shareholders of the company and will include call to action instructions valid for a 30 day period from the Registration Effective Date. Shares not subscribed by rights holders during the first 30 days may be purchased after this period through participation in the over-allotment option. The 30 day over-allotment option period will commence immediately after expiration of the first 30 day period, commencing from the Registration Effective Date.
CEO Malcolm Bendall said "The Rights Issue and Over Allotment option will enable existing shareholders to increase their interest in Empire at a time when the company's prospects will be progressively defined as a result of the Drilling at Bellevue #1 site."
Mach One Corporation, a biological solutions company that develops products that produce a positive long term benefit to the agricultural and consumer market, closed the acquisition of 100% of the stock of the Company's Pacific Rim Foods subsidiary in a stock-for-stock exchange in December 2008. This exchange of shares moves the Pacific Rim subsidiary of Empire Energy into a larger and diversified investment with positive expectations for growth and liquidity.
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.
Aerial pictures of the well site and the progress of the setup are available on the company's web sites www.empireenergy.com and www.gslm.com.
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.
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.
Return to Press Releases
