Empire Receives Bids for Drilling
Empire Energy's wholly owned subsidiary Great South Land Minerals has received bid documents from three drilling contractors based in Australia.
The bid documents were received from Hunt Energy, Century Drilling and Ensign International Energy Services. The tenders have been evaluated for commercial competitiveness and ranked as shown above.
None of the bidders have responded as requested, choosing to offer day-rate drilling solutions instead of the full turnkey as the company had originally requested due to perceived exploration drilling risk(s) that may be associated with the blocks.
Due to the non-conformance of bid documents, GSLM will now negotiate new terms and conditions with the winner and if a reasonable agreement cannot be reached within two weeks, GSLM will undertake to negotiate the same with the two runners-up. GSLM expects that a decisive drilling contract will be in place by no later than November 30th, 2007. Rig mobilization can commence immediately after the contract is signed.
"Although day-rate drilling solutions will require increased involvement of GSLM with day-to-day operations, we are willing to undertake this challenge and added cost in order to meet our drilling goals mentioned earlier in September," said GSLM's Managing Director and Exploration Manager Dr. Clive Burrett.
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