Empire Energy Corporation Intl. (fka EEGC)

[BobSinCA]

Mr. Haftel, I believe you are mistaken.

You say the company does not have to come up with $12M, but this seems at odds with the company's 3 Sep 2010 PR:

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.

Normally, the underwriter's fees do come out of an offering, that is true, but not such things as insurance policies, particularly as no-one is likely to buy these notes without one (perhaps an escrow process COULD be arranged, whereby $12M of the first $45M are used to pay the fees).

I HOPE you are right; the PR does say that 'these commitments are anticipated to cover the expenses,' but not clear what 'these commitments' are. There is reference to the RO, but that only moved $9M of debt from the company to Mr. Bendall and the Directors, at least a million of which was debt to Mr. Bendall himself, not $12M.

If this is 'standard stuff,' which comes out of the gross proceeds, why mention in a PR -- no-one else does.

Perhaps the next PR will clarify, this is at least ambiguous.

Meanwhile, only two months until the announced drilling recommencement date, and no announcement of placement of a rig order.