Message #22 From:
NewsBot Date: January 19, 2007 05:10:00 AM
EEGC News Empire Energy Announces Completion of Significant Financing
LENEXA, Kan.--(BUSINESS WIRE)--Empire Energy Corporation International (“Empire”)
(OTCBB:EEGC) announces that it has concluded new financing arrangements
initially announced November 15, 2006 with an international investor
group that will provide the capital to enable it to continue to execute
major oil and gas exploration over its Tasmanian license area commencing
early in 2007. Empire has received to date $8.5 million and through
exercise of warrants could obtain an additional $5 million.
Great South Land Minerals, Ltd. (GSLM), Empire’s
wholly-owned subsidiary issued a note in the principal amount of US$ 4
million with Wind City, Inc. The note pays interest at 4% over the prime
rate and is repayable on or before 31st May 2008. Wind City, Inc is a
Delaware corporation and is part of a group of companies owned by Mr.
Brian Caffyn, including the UPC Group of companies involved in wind and
renewable energy projects in the United States, Europe and Asia.
A portion of the funds were used to purchase a new mobile oil drilling
rig. Various ancillary equipment for the drilling rig will be purchased
for a total commitment of approximately US$ 2 million. The drilling rig
has been shipped and the related equipment is due to be shipped shortly
and GSLM expects to commence drilling operations in Tasmania during the
second quarter of 2007. A further commitment of US$ 2.0 million was made
in the form of payment to Terrex Pty for the acquisition of at least 700
km of seismic during 2007. The program builds on the information
acquired from the 2006 seismic survey which enabled GSLM to develop a
refined exploration programme. When processed with previously acquired
data, the new information will materially assist GSLM in identifying
well sites with high prospectivity and will provide GSLM a geological
prognosis for the drilling programme.
As part of the financing, Empire’s
wholly-owned subsidiary Cyber Finance Group Limited sold 4,500,000
shares of common stock of Zeehan Zinc Limited at a price of US$ 1 per
share. Proceeds of this sale of US$ 4,500,000 will primarily be invested
in the oil and gas exploration program in Tasmania.
Cyber will retain a balance of 2.78 million Zeehan Shares which it may
sell at a later date to raise further capital for Empire’s
main focus, which is the development of oil and gas in Tasmania.
Empire also issued to Wind City warrants to acquire 60,000,000 shares of
Empire Class A common stock at a price of US$ 0.15 per share. The
warrants are issued in two tranches. Wind City may at its option apply
the principal due under the note issued by GSLM to the subscription
price for 26,666,667 shares of Empire Common Stock under tranch A. The
tranch B warrant provides Wind City the right to subscribe for
33,333,333 million shares of Empire common stock and will, if exercised
in full, raise a further US $5 million before expenses. Wind City has
until the 30th of November 2007 to exercise its
rights to the tranch B warrants.
Empire’s Chairman and CEO Malcolm Bendall said “I
am extremely pleased to announce these transactions and appreciative of
the confidence placed in Empire by the Wind City organization. The
capital provided will enable GSLM to commence a major exploration
programme within the highly prospective Tasmanian Basin. Market
conditions are extremely favourable and this programme represents the
culmination of over 20 years work in developing GSLM’s
oil and gas acreage potential.”
The company has accepted the resignation of Director Keith W. Laing
effective January 18, 2007. No replacement director has been appointed
to date.
For and on Behalf of the Board
Malcolm Bendell, President
Empire is traded on the OTC market in the USA OTC market under the
symbol EEGC.OB
This press release contains forward-looking statements based on our
current expectations about our company and our industry. You can
identify these forward-looking statements when you see us using the
words such as "expect," "anticipate," "estimate," "believes," "plans"
and other similar expressions. These forward-looking statements involve
risks and uncertainties. Our actual results could differ materially from
those anticipated in these forward-looking statements as a result of our
ability to complete required financings and other preconditions to the
completion of the transactions described herein and Empire's ability to
successfully acquire reserves and produce its resources among other
issues. We undertake no obligation to publicly update any
forward-looking statements for any reason, even if new information
becomes available or other events occur in the future. We caution you
not to place undue reliance on those statements.
