Published:
Empire Advises Drill Rig Status, License Applications and Rights Offering Registration
LEAWOOD, Kan. - (BUSINESS WIRE) - Empire Energy Corporation International (Empire) (OTCBB:EEGC)
this week announced the mast and certain other components of the Hunt
Energy rig #3 at the Bellevue #1 well site were moved to a holding yard
in Launceston where work will be undertaken to "winterize" the rig to
work in all conditions. Snow, frost and temperatures well below zero
over the past few weeks (and forecast to continue over the next few
months), could cause safety problems; with ice and snow falling from the
mast and the constant wet starting to cause corrosion. This extreme
weather is mainly due to the Bellevue #1 site being situated at a high
elevation (1,070 meters above sea level) and the Tasmanian alpine winter
(June-Aug.). Hunt Energy has advised that it is their intention to
resume work at Bellevue #1 when further funding becomes available.
SEL 4/2009 and SEL 5/2009 Applications
Empire Energy advised that Tasmanian Minister for Energy and Resources
declined to approve the applications for special exploration licenses
SEL 4/2009 and SEL 5/2009 applied for on 20 April 2009 by Empire. The
reason given in the Minister's letter was that "the applications do not
include sufficient information to satisfy me that EECI is likely to have
sufficient financial resources to carry out the proposed work program,
following the company's statement in the SEC Filings for EEGC.OB Form
10-Q on 20 May 2009." Empire refutes this statement and has sought a
review of this decision from the Deputy Secretary of the Department of
Energy, Infrastructure and Resources on the grounds that information
drawn from the 10-Q was misinterpreted and future commercial dealings
were not taken into account in the consideration. In response to the
Minister's letter, Empire has also submitted two new applications on 18
June 2009, for the special exploration license areas covered by SEL
4/2009 and SEL 5/2009, highlighting the financial and technical capacity
of Empire Energy to carry out the proposed exploration programs and
removing Geominex Resources as a joint venture partner.
Registration Statements
The Registration Statement filed with the SEC in April to allow resale
of certain shares has progressed through preliminary review and may
become effective upon completion of final legal opinion and consents.
The Registration Statement filed with the SEC in May to allow the
announced Rights Issue continues to progress through preliminary review
with expectation of comments in the coming week. The Rights Issue will
become available when SEC review, legal opinion and consents are
complete and the registration is allowed to become effective by the SEC.
The registration filing is the preliminary stage of the USD$ 9 million
(AUD$12 million) Rights Issue offering. Shareholders of record on the
December 18, 2008, record date are eligible to subscribe for one share
for every two shares held at that date at a price of US$ 7 cents (about
AUD$ 9 cents) per share. With the proceeds, it is intended to expand
funding of the drilling campaign and pay outstanding due debts of Empire
and its subsidiaries, including Great South Land Minerals Ltd. Empire
CEO, Malcolm Bendall has announced that he intends to acquire his full
allotment of shares in the Rights Offering and to participate fully to
acquire additional shares in the over allotment option to the extent
that other Rights Holders fail to exercise.
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-K and 10-Q reports filed with
the U.S. Securities and Exchange Commission.
Empire Energy Corporation International
Malcolm Bendall,
816-663-2310
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