NEWS
Empire Posts 10Q for US $9 Million Rights Offering in Preparation for Expected Drilling Program EL 14/2009 and Secures Seismic Ship for Offshore Exploration Eastern Tasmania for SEL 13/2009
LEAWOOD, Kan.--(BUSINESS WIRE)--Empire Energy Corporation International (OTCBB: EEGC) CEO Malcolm Bendall announced that Empire has posted the 10Q report for the quarter ending September 30, 2009. The financial statements and other updated information contained in the 3rd quarter 10-Q will be integrated into US $ 9 Million Rights Offering registration statement to be submitted to final review by the SEC in preparation for the expected capital raising.
Empire CEO Malcolm Bendall announced, “The 10-Q filing will allow us to finalize our Rights Offering registration statement which Empire expects to be fully subscribed, and if successful, will allow Empire to restart drilling as part of our overall business plan for our Tasmanian onshore project. Drilling is planned to begin at Bellevue No.1 site and Thunderbolt No.1 as soon as funds are available. An independent ‘Competent Persons Report’ done by RPS Energy, a leading global petroleum valuations company, calculated an undiscovered prospective resource for Empire of 668 million barrels. WHK, an independent Australian accounting firm recently assigned our Tasmanian onshore project a value of US $3.3 Billion."
Empire is currently awaiting the completion of the recently ordered RPS Valuation Report expected to further validate the US $3.3 Billion valuation of Empire by WHK.
Empire has also negotiated the use of a 70-foot ship for planned future off shore seismic exploration once final approval has been received for SEL 13/2009 from Mineral Resources Tasmania (MRT). Empire CEO Malcolm Bendall said, “Empire is pleased to add these new offshore seismic capabilities to the company operations.” This has been coordinated through wholly owned subsidiary Great South Land Minerals (GSLM) in Tasmania. The ship, named ‘RV Challenger’ will display corporate logos and the words “Empire Seismic Challenger.” The ship is powered by a 500HP engine and will be equipped with state-of-the-art navigation equipment. It also has a 300HP hoist engine with a 150HP reserve backup motor suitable for hydraulic cable drum operations in seismic line placement and recovery. Empire plans to have pictures of the ship available for viewing on the Empire website shortly.
This news follows our recent announcement of signing the “Back to Site Agreement” with Hunt Energy drilling in preparation for the commencement of our onshore drilling program beginning at Bellevue No. 1. These new developments, along with the substantial body of work performed by Empire and Great South Land Minerals over the past ten years, demonstrate Empire's continuing commitment to oil and gas operations in Tasmania and Empire's readiness to move forward in its efforts to discover and develop onshore and offshore Tasmanian oil and gas potential once final approval of the new leases has been received from Mineral Resources Tasmania.
The Final Report on Special Exploration License 13/98 documenting all expenditures and work done over the history of the License has been printed and is set for mailing to Empire Shareholders.
Drilling has been scheduled by others in northern Tasmania, based on interpretation of Empire 2001 seismic information. Any indications of the presence of hydrocarbons at the northern sites will be considered validation and positive for Empire. Previously the sites had been dropped from Empire license area in favor of the several better defined larger structures identified by Empire such as Bellevue and Thunderbolt.
Empire has identified fifteen onshore structures believed to be capable of containing substantial commercial quantities of oil and gas. Special Exploration License SEL 13/2009 contains an additional 12,000-square-kilometer area, most of which is over the shallow water shelf just off the east coast of Tasmania. Seismic operations over water represent only 1/10th of onshore costs which typically cost US $10,000.00 per line kilometer and are therefore considered quite economical. The planned offshore seismic operations are expected to provide valuable additional information for the exploration efforts of Empire, further confirming our belief that the line of structures continue offshore as previously indicated by seismic work performed in Storm Bay.
Empire believes that previous seismic work in Storm Bay suggest likely structures that would represent significant additions to the many onshore structures already identified by Empire. These shallow water locations contained within SEL 13/2009 are potentially capable of containing substantial commercial quantities of oil and gas.
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 10K and 10Q reports filed with the U.S. Securities and Exchange Commission.
