Empire Energy has entered into an agreement with an international finance company, Sure Capital to provide structured financing in the sum of US $180 million, conditional upon the completion of prerequisite documentation.
In May 2010, Empire signed a memorandum of understanding with Sure Capital at their offices in Hamilton, Bermuda to initiate the process for providing structured financing to Empire in the form of $45 million per annum over a four year period to support the Company's license applications and the resumption of its drilling operations. Empire's financial and legal advisers have been working with Sure Capital management, which has culminated in the signed agreement. The terms of the Agreement are based on the US $3.3 billion estimated value of the license area that Empire and GSLM have asserted legal claim to. Australian accountancy firm WHK Denison provided this industry valuation based on the work of international independent competent persons firm RPS Energy. This industry valuation has been included in Empire's recently amended Form S1 Registration Statement which was allowed to become effective by the US Securities and Exchange Commission (SEC) on June 21, 2010.
Empire and GSLM CEO, Malcolm Bendall said, "the Rights Offering will conclude on the July 30, 2010 and I confirm my intention to take up any outstanding shares that remain unsubscribed. This additional capital supports the 12,000 square kilometer license area applied for under SEL 13/2009, the restoration of the full area of SEL 13/1998 and recommencement of the Company's 12 hole drilling program. The Company intends to commence drilling at the Bellevue and Thunderbolt sites and also intends to drill the structures valued by RPS Energy at over one billion US dollars that were not included in the license area granted by Mineral Resources Tasmania. These additional structures will now be the subject of an appeal by GSLM to the government. The agreement entered into today with Sure Capital, provides sufficient finance to drill all 12 structures. I remain focused on working with the Sure Capital team to complete the remaining documentation and ensure it is completed promptly."
It is the intention of Empire and GSLM that once financing has been successfully completed and monies have been disbursed, it will advance its early stage discussions to enter into a joint venture with a gulf region oil company to manage the business operations for the full development of oil and gas in the Tasmania Basin.
Empire advised GEFCO in the USA of confirmation of the conditional order contract and requested preparation for the coordination and shipment of the SpeedStar 1100 drill rig to Australia. Once the purchase contract is finalized, the rig will be shipped to Australia within 6 weeks.
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