Empire Energy Corporation Intl. (fka EEGC)

[BobSinCA]

Mr. Haftel --

EEGC apparently does believe it owes Hunt at least some money, per the 2009 10K filed in June 2010:

In July 2009,
GSLM was served by Hunt Energy with a Statutory Demand claiming balance due of AUD$173,678 (US$149,000) of the original
debt and a separate additional Statutory Demand in an amount of AUD$1,509,200.00 (US$1,298,000). The Company believes it has
significant defenses and is negotiating an agreement with Hunt Energy that will allow appropriate payments to be made over an
eighteen month period of time that are guaranteed by Empire’s CEO and that will allow Hunt to return to work when funding is
available. Payments totaling AUD$35,000 (US$31,000) were made in 2010 on this agreement, which continues to be under
negotiation.

And I am sure you are right -- Hunt is moving now to get its money for prior activity, before EEGC spends it on new activity, because they see that EEGC may come up with some funds.

It will be interesting to see the source of the $12M that is now apparently required to obtain the $180M from Sure. I will say, the following section of the PR was confusing:

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.

Specifically, what 'engagement,' and how could this 'engagement' be 'accomplished' by an RO which cost money (assuming legal, etc. cost more than $58K, which is a a reasonable expectation) and apparently had the sole benefit of taking debt off its books.

I guess the good news is, the company is being 'active,' now we need it to be 'productive,' for example a PR which says that GEFCO has shipped the rig, not just expressed continuing confidence in EEGC.