Tasmanian Director of Mines Advises Great South Land Minerals Ltd, Wholly Owned Subsidiary of Empire Energy, His Intention to Recommend to the Minister for Energy & Resources That Exploration License 14/2009 Be Granted.
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Press Release Source: Empire Energy Corporation International On Friday March 5, 2010, 8:00 am EST
LEAWOOD, Kan., March 5 /PRNewswire-FirstCall/ -- Empire Energy Corporation International (Empire)(OTC Bulletin Board:EEGC.ob - News) announced on Friday, March 5th 2010 the Company has been advised that the Director of Mines has provided written notification to wholly owned subsidiary, Great South Land Minerals Ltd (GSLM), of his intention to recommend to the Minister for Energy & Resources that Exploration License 14/2009 be granted subject to a number of terms and conditions. GSLM has also confirmed the remittance to Mineral Resources today, the required rental for the new tenement payable in advance, as a pre-requisite to the recommendation being forwarded to the Minister, in addition to confirming instructions for the transfer of the pre-existing security deposit held over former Special Exploration License SEL 13/98 to the new tenement. It is expected that Minerals Resources Tasmania will advertise Exploration License 14/2009 on 20 March 2010. The proposed license encompasses 3,180 square kilometers (approx. 788,266 acres) and covers the Bellevue and Thunderbolt structures. The rental fee in relation to this area was paid on 5 March 2010. These seismically defined structures are estimated by internationally recognized oil and gas Competent Persons firm, RPS Energy Pty Limited, to contain a combined mean estimate of 447 million barrels of oil (refer: Table 2 of Competent Persons Report – Assets of GSLM, October 2008). Additionally, WHK Denison, one of Australia's top 10 accountancy firms, has valued this undiscovered potential resource at US$2.23 billion (AUD$2.48 billion) by discounting the current US$80 per barrel (AUD$89 per barrel) market price of oil down to US$5/barrel. This discount is based on the comparative sale value on the Australian mainland market of the undiscovered prospective resources. However, at a current market value of US$80 per barrel (AUD$89 per barrel), this asset represents a gross potential value today of US$35.76 billion (AUD$39.78 billion).
While this license represents nearly a 50% reduction from GSLM's original 7,513 square kilometer (1,856,502 acres) application, the Company has accepted the reduced area to continue drilling activities, however, will actively pursue and continue to negotiate with the Minister for Energy and Resources for the remaining area to be granted pursuant to the terms of the previous Special Exploration License SEL 13/1998 license and the Minerals Resources Development Act 1995. The undiscovered potential resource estimates are a result of Empire's and GSLM's US$50.71 million (AUD$56 million) investment over the past 33.3 years. Empire and GSLM believe the remaining area, which encompasses a further 10 (ten) seismically defined prospective resources (refer: Table 2 of Competent Persons Report – Assets of GSLM, October 2008), is estimated to contain a further resource potential of 222 million barrels of oil. This has an undiscovered potential commercial resource value of US$1.108 billion (AUD$1.23 billion) at the discounted US$5 per barrel. At current world prices of US$80 per barrel the undiscovered potential commercial resource would be worth US$17.74 billion (AUD$19.73 billion). Empire intends to resume its drilling program in the licensed area and is confident the company will soon be able to drill all 12 discovered prospective structures which together hold a total undiscovered potential resource of 669 million barrels of oil and a gross potential value of US$53.5 billion (AUD$59.51 billion) at the current US$80 per barrel (AUD$89 per barrel).
We regret to advise shareholders that Empire Finance Director, Mark Calloway, has recently passed away due to illness. Empires' Board and fellow work colleagues pass on our deepest sympathy and condolences to Mark's family and friends in this time of loss.
Further to, and as a result of the acceptance of Exploration License 14/2009, Empire and GSLM have extended invitations to Mr. James H. Leach of Newport, Rhode Island to join Empire Energy's Board of Directors and Mr. Mark Cowan of law firm Patton Boggs, of Washington, D.C. to join as an Advisor to Empire's Board, after the scheduled completion of its ongoing USD$9.3 million (AUD$10.34 million) Rights Offering on or about April 20, 2010. Both Mr. Leach and Mr. Cowan are highly regarded within their respective professions and together will bring a wealth of legal, financial as well as political experience and expertise to the future of Empire Energy and its shareholders.
Mr. Leach currently serves as the Senior Managing Director of National Trust, LCC a subsidiary of the Leach Family Trust, one of New England's largest real estate developers with over 2.5 million square feet currently under development. Since his recognition in 1997 by the Environmental Protection Agency (EPA) as a pioneer in the reuse of Superfund Sites his ongoing work has been adopted by EPA and currently serves as the nationwide model for the Federal agency's billion-dollar Superfund Program.
For nearly two decades, Mr. Leach has imparted his proficient corporate guidance to a wide array of companies. At present, he is serving his 18th year on the board of The Oster Group, a privately owned investment banking operation specializing in providing capital and business management to emerging companies and his 6th year on the board of Kenney Manufacturing Company, a leading manufacturer and distributer of household products established in 1914 and among Rhode Island's largest employers.
In addition to his corporate boardroom experience, Mr. Leach has also maintained involvement in a number of local government boards serving as acting chairman of the Providence City Planning Commission, Trustee to the Providence Public Library, a Board of Governors member for Miriam Hospital, and currently serves as a Board member of the Rhode Island Public Telecommunications Authority, Grow Smart Rhode Island, The Rhode Island Philharmonic, Providence Zoning Commission, Providence Children's Museum, Touro Synagogue Foundation, Preserve Rhode Island and the Rhode Island Heritage Hall of Fame.
Mr. Mark Cowan, a partner at the Nation's largest government relations and lobbying law firm, Patton Boggs, has more than 35 years of experience working on complex domestic and international public policy issues to counsel a broad range of clients, advising corporations, government entities, and foreign sovereigns on a wide array of business, regulatory, and trade issues.
Mr. Cowan joined Patton Boggs after a long and successful career in the Washington public affairs and government relations industry. He served as president of Columbus Public Affairs and as Chief Executive officer of Newmyer Associates, he was Vice Chairman of Cassidy & Associates, and Founder and Chief Executive officer of The Jefferson Group. Mr. Cowan also served at Gray & Company and Hill & Knowlton Public Relations and has also held presidential appointments in three administrations. During the first Reagan administration, he served as Deputy Assistant Secretary of Labor and was appointed Chief of Staff and Counselor to the Secretary of Labor in 1982 and President George H.W. Bush appointed him as a Commissioner on the National Commission on Employment Policy and as a Member of the President's Council on the 21st Century Work Force.
In addition to his US Presidential Appointments, Mr. Cowan has held several other government posts. He was Counsel to the Committee on Standards of Official Conduct (ethics) of the U.S. House of Representatives and also served at the Central Intelligence Agency (CIA) as an operations officer, serving abroad and as a country desk chief in the agency's Directorate of Operations and held the position of Assistant Legislative Counsel to the Director of Central Intelligence (for more information, please visit www.pattonboggs.com/mcowan/).
CEO Malcolm Bendall remarked, "It is a great privilege and honor to have individuals of such proven integrity and professional accomplishment express interest in working to guide and aid Empire in its current endeavors." Furthermore, Mr. Bendall commented, "With the combination of financial, political as well as legal skills these two outstanding professionals harbor, Empire has never been more expertly equipped to undertake the development of the Tasmania Basin nor more well advised to manage the more vigorous requirements of corporate governance, finance and structure demanded by the size of the project the company is now undertaking. Shareholders have never been in better hands at a better time when the current market capitalization of Empire is 200 times less than the current asset value of US$2.23 billion (AUD$2.48 billion) comparative market value." As a point of clarification, we believe that part of the disparity between the current share price and the asset value, may be a result of previously having Special Exploration License (SEL 13/98), however, only being able to obtain a valuation at the expiry of that license. The granting of Exploration License 14/2009 represents the first time since then Empire Energy will be in possession of both a valuation as well as a license.
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:
Malcolm Bendall, CEO
Empire Energy Corporation International
913-663-2310
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