Empire Energy Corporation Intl. (fka EEGC)

[oilsleuth]

BobSinCA

Some more comments:

Agree with you it is quite astonishing that it was not known the intermediary (Sure Capital or whoever it was) was not able to do business in the USA. It doesn't sound like Saudi ARAMCO were too bothered about continuing on (if they ever were).

Agree with you that an $8 million new rig purchase for just two prospects and possibly just two drill holes is unjustified. The logistics involved would be horrendous. Very strange indeed.

Agreed that Mr Bendall's flare gas technology transaction is incomprehensibly complex and it has every appearance of having been a ruse to take up rights in lieu of his failure to buy them for cash as he undertook to.

I'm not at all clear what the EMV (expected monetary value) (note: not "mean") figure for Bellevue and Thunderbolt is meant to pertain to. Since the figure is in the ballpark of past exploration expenditure I can only guess it is intended to be a valuation of the two prospects as represented to a hypothetical prospective buyer i.e. the present market worth of the project. Is that your understanding as well?

Mr Haftel has been vociferous about a number of matters and I don't remember what he claimed as a large valuation made in the updated RPS report. I do recall him being quite excited about the huge number of expensive production wells estimated by RPS to be required if commercial fields were to be developed.

The Virginia Energy Consultants letter of assessment (it cannot be called a report) is so superficial as to be essentially meaningless and it can be dismissed from any serious consideration. RPS considered both the play COS and individual prospect COS, which VEC did not do, in addition to other detailed aspects.

I am also puzzled as to what the ill-fated Zeehan Zinc might have to do with Empire's present petroleum exploration activities. Also why Mr Bendall's experience as a field assistant in 1980 should be considered at all important.

I was intrigued as to how the major Australian accounting firm WHK arrived at the much-touted "asset" valuation of $3.3 billion. It now transpires it was made in a letter to the Director of Mines (Appendix Q in Hunter Wise Due Diligence). The $5 a barrel indicative valuation figure was obtained from RPS itself (a Mr Guise) and applied to the RPS prospective resources so that the simple multiplication calculation to derive the $3.3 billion figure (there was also a "low" figure of $0.5 billion that has unsurprisingly not been stated in any PR) was the sum total of WHK's original contribution. The references to "assets" by WHK ("Value of Assets" as the title of one section of their letter, and "the assets of Great South Land Mining [sic]" in the Conclusion would appear to be a very loose use of the term for a major accountancy firm.