Replies to post #20264 on Empire Energy Corporation Intl. (fka EEGC)

[zequalsz]

[pitts77h]

Malcolm's going to walk away from his $21,000,000?

Riiiiiiight.

Of course, it's all very murky. I know the press releases have been contradictory on this, mixing up the flare gas transaction with the Grand Monarch transaction. This PR definitely puts the two together:

http://www.reuters.com/finance/stocks/keyDevelopments?symbol=EEGC.PK

"Through said acquisition, Grand Monarch commits its existing credit card and Sanitec Industries medical waste contracts and further acknowledges the transfer of rights for North, South and Central America for the patented flare gas technology it has recently acquired through negotiations."

But I prefer to look at SEC filings - while still very unclear, there's less out and out lying. The 9/30/10 10-Q indicates the Flare Gas is tied up in a different company, one controlled by Malcolm.

http://sec.gov/Archives/edgar/data/788206/000107878210002847/empire10q093010.htm (page 9)

"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. Since the technology acquisition is expected to be from a related party, the amount paid for the deposit on the technology in excess of the sellers accounting basis was recorded as compensation to the officer. Completion of this acquisition is expected to be completed in the fourth quarter 2010 or the first quarter 2011. Total cost of the acquisition is expected to be $21 million ($14 million in addition to the deposit held), initially funded by Company unsecured debt convertible to Common stock"

I believe that the wording here indicates Malcolm's cost basis in the "technology" was ZERO. He paid nothing for it. Why would that be? Perhaps that is exactly what it's worth? ZERO?