Empire Energy Corporation Intl. (fka EEGC)

[BobSinCA]

Mr. Bendall purchased his RO shares in the first round through the conversion of past due salary the company owed him, as well as conversion of cash advances he had made to the company to keep it running.

The stock was well under $.07 at the time of this conversion. Mr. Bendall fans will point out that this was very magnanimous, to convert $.07 of debt into $.04 of stock; detractors will point out that Mr. Bendall was never going to be paid unless oil was discovered which would move the stock well above $.07/share, in which case the net impact of this transaction was to dilute shareholders.

But we digress.

The documents are somewhat obscure as to how the additional RO shares were acquired. But there are some very strong hints that lead to certain conclusions:

- On June 30, 2010, the company's financials do not show $6M owed to Mr. Bendall, or any other director.

- The company's Q3 2010 10-Q says that:

In addition, the Company made a deposit to purchase a technology license from a
company controlled by Mr. Bendall using a loan in the amount of $7,000,000

- The company's August 10 PR said:

. In the 2nd round Mr. Bendall converted $5,845,453.18 of personally held Empire Energy debt into equity shares at a price of 7 cents per share.

- The company's 9/30 balance sheet shows a related party note payable of only $920K.

I would argue that the above suggests that most of the $7M 'deposit' was used by Mr. Bendall to convert RO shares.