Empire Energy Corporation Intl. (fka EEGC)

[Howardhaftel]

PR #2Empire Drilling Program Recommencement Scheduled, Financial Structuring Details and Grand Monarch Business Projections
Date : 09/03/2010 @ 1:04AM
Source : Business Wire
Stock : Empire Energy Corporation International (EEGC)
Quote : 0.022 0.0 (0.00%) @ 2:05AM


Empire Drilling Program Recommencement Scheduled, Financial Structuring Details and Grand Monarch Business Projections
Empire Energy Corporation International Common Stock (USOTC:EEGC)
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Today : Friday 3 September 2010
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Empire Energy Corporation International (Empire) (Pink Sheets:EEGC) announced on Friday, September 3rd, 2010, that after consultation and coordination with the Company’s drilling contractors and GEFCO, the rig’s manufacturer, and through their renewed confidence in Empire’s financial strength obtained through diversification and anticipated bond sales, Empire has scheduled recommencement of its 12-hole drilling program.

GEFCO’s Vice President of International Sales, Art Kliewer, commented: “GEFCO is confident in continuing our long-term relationship with Empire Energy and are working with Empire on the coordination and purchase of all ancillary equipment to accompany their new Speedstar 1100 drilling rig. We are excited for the Company and its shareholders as we prepare shipment to Australia of the new rig and its components in the very near future.”

Once the rig has completed construction and shipment, Empire’s drilling contractors have agreed to be mobilized to the Bellevue site by mid-November to embark on a summer (Australian summer, US winter) drilling program.

Empire has secured the engagement to complete the prerequisite requirements for the structured finance, estimated to cost $12 million. This was accomplished through the oversubscription of the Company’s rights offering, which closed last month. These commitments are anticipated to cover the expenses associated with the $180 million financial structuring. Included in this statement of charges are the fees associated with the preparation and issuance of a prospectus for principally protected notes, the purchase of an insurance policy to enhance the rating and quality of these notes, the fees incurred to have the notes rated by an internationally accredited rating agency, the costs related to the placement of the notes with investors as well as management fees for the above Bermuda-based management services.

Subject to the notes being completed and placed, the Company expects to be able to begin drawing down on the $180 million in $45-million-per-year tranches for four consecutive years in the coming months, as the terms of a joint venture with a specific Gulf–based oil company evolve.

In the meantime, Empire is progressing with its reacquisition of Grand Monarch Holdings as a means to obtaining additional diversified revenue streams for the benefit of all current and future Empire shareholders. These added revenue streams have the potential to independently support Empire’s short-term drilling program and the ongoing funding of Empire’s wholly owned Australian subsidiary, Great South Land Minerals Limited.

Grand Monarch operates primarily as a financial services provider through its principal business of issuing low-interest-rate credit cards for which profit is generated through a variety of means. This includes a per-card activation fee, a percentage of each cardholder’s charged transactions as well as development of a bankable asset portfolio based on a set value per card issued. Supplementary to the numerous cards already issued, Grand Monarch confidently expects to issue an additional hundreds of thousands of credit cards within the next year.

In an effort to diversify Grand Monarch’s revenue streams, the Company has recently obtained exclusive licensing and sales rights for an innovative proprietary medical waste treatment platform, whose patents are held by Sanitec Industries, a US corporation. These machines are currently operating in hospitals throughout the United States and 12 foreign countries. Grand Monarch is now the exclusive provider for this product in the states of California, Nevada, Arizona and Washington, as well as the UAE, Saudi Arabia, Qatar and all of West Africa. Last week the Company initiated negotiations on a $3 million purchase order with a private West African client. In addition to providing the machines at a reduced cost/free to some poverty stricken African nations, the Company predicts a sustained increase in sales as it expands this sector of its business operations both domestically and internationally.

Empire is engaged in negotiations with Mineral Resources Tasmania in regards to 10 structures worth over $1 billion, of its original EL14/2009 license application that were not granted to the Company. Today, Great South Land Minerals (GSLM) had a cordial meeting with the Tasmanian Minister of Energy and Resources, the Hon. Bryan Green, who aided in creation of GSLM’s previously successful works program which led to the discovery of Empire’s 12 structures currently valued at $3.3 billion, as well as with key Government personnel to openly discuss these disputed EL14/2009 claims and Empire’s financial structuring deal. The Company is pleased to note that the Government has expressed willingness to consider acknowledgement of any instrument that may be required to facilitate implementation of the securitization requirements associated with the structured finance deal. Both Companies look forward to continuing the positive interactive relationship with Mr. Green and the Government in completion of the Company’s finance deal and drilling its 12 structures discovered with world-class seismic, geological and geophysical surveys.

During the past few months, Empire has focused on developing its financial strength through a partnership for $180 million of structured finance as well as diversifying the Company’s short-term revenue streams with the strategic reacquisition of Grand Monarch Holdings. With the addition of an experienced team of financially, legally and politically well-versed businessmen to Empire’s Board and Advisory Board, including Mr. Mark Cowan, Mr. James Leach and Mr. David Villarreal III, led by Mr. David Villarreal Jr. as the new Chairman-elect, Empire has never been closer to the long-waited realization of its $3.3 billion undiscovered prospective valuation and the discovery and commercialization of the in-ground $50 billion of oil and gas in the Tasmania basin.

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 becoming 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.

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