Empire Energy Corporation Intl. (fka EEGC)

[Drunken Sailor]

Answer from Zac

Thank you for your thorough and insightful comments.

The first point of note is that my numbers are STOIIP, and the CPR focuses on reserves.

The second is that my main focus is TXO, not Empire, which as you highlight is in discussions and waiting for funding.

Essentially, and this was my point, Empire is an irrelevance to TXO's valuation, UNTIL it gets funding. Until then, the only risk to TXO is the investment it has made to date. The downside risk to the valuation is zero, and the downside to the IS is the write-off on the SFW; either way, it is zero cash impact.

To date, I have not see credible information that would lead me to conclude that any of the accumulation are prospective, and until more work is conducted on the coal assets, I am afraid I can't get too excited.

We have used option theory to value the potential valuation, which provides for heavy discounts to the potential "successful" full development NPV(10%), hence until we see more evidence of the route forward and technical work, Empire will form a minor part of our valuation.

I hope this clears up some of your question!

Regards,

Zac.
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