30 October 2008 - Empire Energy Funding & Drilling
Update
Empire
Energy Funding & Drilling Update
Thursday
October 30, 10:09 pm ET
LEAWOOD,
Kan.--(BUSINESS WIRE)--Empire
Energy Corporation International (OTCBB:EEGC
- News)
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. Contact:
