Empire Energy Corporation International (OTCBB:EEGC) (“Empire Energy” or
“the Company”) has today announced Funding Updates via its wholly owned
subsidiary Great South Land Minerals Limited (GSLM).
Empire Energy is pleased to report that subsequent to reciprocal legal
and financial due diligence procedures completed by both The Company and
the lender announced on February 20, 2009, including specific financial
statements required by the lender; the Funding Process will now proceed
as planned and as previously announced in the Empire Energy Press
Release dated February 20, 2009.
The lender has now officially informed Empire Energy that it is holding
funds for the completion and closing of the previously described loan as
per the signed term sheet, the amount being £1,150,000 GB Sterling;
(Australian $2.53 million).
Empire Energy fully anticipates the closing of the financing within the
next seven to fourteen days. This time is necessary for Australian legal
counsel to complete legal documentation for the Senior Secured
Collateral for this loan.
As importantly, approximately US $500 thousand is expected to be made
available to the Company shortly as an interim measure. These funds have
been structured as a bridging instrument, and will allow the Company the
flexibility to expedite all elements of its Tasmanian drilling program.
Funding from the lender will be used to resume and expand the drilling
program at the Bellevue #1 well in Tasmania, and the Hunt Rig #3 has
been kept on the well site in accordance with its agreement with GSLM.
The Bellevue site has had a great deal of preparatory work completed,
including site access, site preparation work, and the top hole has been
drilled to 272 metres (892 feet) and 20 inch casing has been set.
Recently purchased ancillary drilling equipment is situated on site.
Drill crews will soon return to the Bellevue #1, complete their
inspections, and commence deep drilling. We would once again mention
that living accommodations for the crews have been secured at Bronte
Park near the drilling sites.
