(Source: Business Wire)
Empire Energy Corporation International (OTCBB:EEGC) today provided an update on filings with the SEC and progress on financing the resumption of drilling at the Bellevue #1 well site and an update on its negotiations with Geominex Resources Limited.
REGISTRATION STATEMENT AND 10Q
Empire filed a Registration Statement with the SEC on May 11th 2009 and is awaiting SEC review and approval. Today the Company submitted the Form 10Q quarterly report.
RIGHTS ISSUE
Upon completion and acceptance of the appropriate regulatory filings, all shareholders who are eligible to participate in Empire's proposed Rights Issue will receive documentation which will require action to be taken within 30 days of receipt. Empire's proposed Rights Issue, announced in December 2008, provides for the purchase of one share of Empire common stock at a price of US$0.07 for each two shares held by a shareholder at the close of business on December 18, 2008 (Record Date').
Shares not subscribed by Rights Holders during the first 30 days may be purchased after this period by participation in the Over-allotment Option. The 30 day Over-allotment Option period will commence immediately after the expiration of the first 30 day period.
CEO Malcolm Bendall said, "The Rights Issue and Over Allotment option will enable existing shareholders to increase their interest in Empire at a time when we expect the company's prospects to be progressively defined as a result of our drilling program at Bellevue #1. If fully subscribed, the rights offering will provide AU$12 million (US$9 million) to support the drilling program."
OPERATIONS
Empire Energy subsidiary, Great South Land Minerals Limited (GSLM), advises that the Hunt Energy drill rig is still rigged up on site at Bellevue #1 awaiting further financing to commence drilling. Negotiations for this funding are well advanced on a number of fronts and a further announcement is expected shortly. The Registration Statement includes 20 million Empire Energy shares provided as security to Hunt as part of the agreement with GSLM.
Accommodation for the drilling crew and GSLM staff and contractors is being provided at the Company leased Bronte Park Highland Village where the capacity is being increased by the renovation of 15 rooms. While preparing for the drilling crew, the improvements to the facilities have enhanced the tourism amenity of the region, employed 13 staff and provided revenue to GSLM.
