Empire Energy Corporation Intl. (fka EEGC)

[BobSinCA]

Excellent comment -- since EEGC is apparently going shallow with this first attempt, perhaps they might even use the Spaulding rig??

There is risk in this 'shallow' strategy, if the most shallow pay zone is not there -- but at least it moves the ball forward, and would likely substantially reduce the cost of financing if commercial oil is found. I don't have sufficient knowledge of the geology of the various zones to evaluate the decision, but this feels like the right strategy.

However, previous comments about posters believing that GEFCO would be used because 'they didn't do their research' are inappropriate. Consider the 3 Sept PR as the only source of public information of which I'm aware (anybody have a different source?) (GEFCO added to the quote by me, in context of previous quote in the PR from GEFCO):

Once the (GEFCO) 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

Perhaps the non-GEFCO rig/go shallow decision is an early positive sign of new management - decision to use an existing rig for initial drilling rather than spend unavailable cash on a new rig, a strategy previously panned by several posters including myself (15653, etc.).

However, that does beg the question of availability of cash to mobilize the contractors. Perhaps Mr. Leach's investment company will 'front' some?

At the risk of spoiling the excitement, I would also observe that so far the market is underwhelmed with the announcement in terms of pps, as the company's market cap has gone up less than $600K at this writing. Likely it is waiting to actually see cash in the bank or a drill turning.