Empire Energy Corporation Intl. (fka EEGC)

[Drunken Sailor]

Having a certain level of shareholding gives an automatic right to appoint directors. An individual director could be not reappointed by a vote of over 50% at an AGM, do not confuse the 2 things. Proportional representation means proportional representation the TXO announcement says something similar without using those words:

the board of TOG will have representation from its shareholders

Malc will be on the board and will have another crony with him as a minimum. Malc will not control the board and I would expect an independent chairman to be appointed, if, and it is a very, very big if, a JV is ever formed. At the moment it is just a bunch of intentions subject to certain conditions.

Only you have proposed that they would try to make a case out of there being a contract by virtue of MRT accepting the routine pre payment of the first year's fees. The companies have not claimed this in their announcements. Tim Baldwin said in his oil barrel interview, where he said a number of other things that were either dubious eg the completely unrealistically high CoS figures or false eg their being a market for gas in on the mainland via the pipeline. That acceptance of the payment by MRT was a reason to have confidence the appeal would be successful, he did not say it was the basis of the appeal, that is something you have blown out of proportion. As a reason to have confidence in the success of the appeal, it is an exceptionally poor one as the facts of the case are around the non compliance with the conditions of the licence.

It is interesting to note the lengths the EEGC announcement goes to "prove" the expenditure on SEL 13/98 was genuine, but it does not make any of those claims for the $8m in EL 14/09.

GSLM’s audited expenditure on SEL 13/98 over the eleven year contract period 1999 to 2010, (including a one year period, after the 10 yrs of exploration, for GSLM to apply for any prospective areas identified as a result of the exploration results), in meeting all the contractual license conditions, was $50,851,656. This was made up in part of invoices detailing $32,417,049, (alone is in excess of the SEL 13/98 expenditure commitment) expended acquiring 1,300Km of 2D seismic, drilling, geophysics, geology and wages being sorted into files. Those files unequivocally prove that quantum of expenditure and include letters from the suppliers and contractors supporting the validity of GSLM’s claims and are now with the receiver manager SMB, MRT, The Right Honorable Minister and Kim Booth a member of the Greens party. The generation and distribution of these files was to affirm the validity of our expenditure and prove it was clearly in excess of our work commitment on SEL 13/98.

The argument, and it is GSLM's argument to make not TOG's, would appear to hark back to the previous SEL in order to overlook the fact the EL 14/09 conditions were not met. GSLM were very lucky to get EL 14/09 at all, given that they had not completed exploration after a full 10 years of SEL. Malc seems to think he has a god given right to the licence. You keep talking about the law, well I have already produced the relevant section of the relevant law for you and of the 4 criteria that must all be met in order to give an legal right to an extension, GSLM met none out of 4. There is also the matter of providing false and misleading information (even you admit that value was not achieved (ie the work was not done) and accounting for the expenditure would need to be creative) which will incur 50 penalty points and maybe a whole lot more.

Do you not think it strange that TXO did not mention the $500k immediate fund raising - a material event and actually would be good news if true. Does the fact that the NOMAD approved TXO announcement made no mention of it prove that EEGC's filing is a lie in this respect?

The East Africa Oil mention in EEGC's announcement is also interesting as EEGC have no interest in EAO as they did not take up the option (they did not have the money and still do not have the money and it would be a material event for TXO as their holding of EAO would have been dramatically diluted). Strange EEGC should want to say something about it whilst TXO, who do have an interest say nothing? Though I guess as we have seen these sort of dissimulations played out before with the last TOGL JV charade and the Coleridge charade, maybe it is not so strange.