LEAWOOD, Kan., June 8 /PRNewswire-FirstCall/ -- Empire Energy Corporation International (Empire) (Pink Sheets: EEGC) announced on Tuesday, June 8, 2010 that it has completed the audit of its 2009 financial statements and filed with the Securities and Exchange Commission Form 10K for the year 2009 and the Form 10Q for the quarter ended March 31, 2010. With completion of these documents, Empire is again up to date on filings and will reapply soon with FINRA to regain status on the Over the Counter Bulletin Board (OTCBB).
In addition, Empire has completed and filed the post effective amendment to the registration statement (Form S-1) for the Rights Offering that is currently underway and in the oversubscription period. The oversubscription period will resume when the registration statement is allowed to become effective by the SEC.
The first round of Empire's Rights Offering to raise US$9.3 million concluded with a significant number of shareholders around the world exercising their right to take up additional shares in the company. All eligible Empire Directors took up their full share entitlements which included the conversion of US$1.2 million of our debt to equity shares. Furthermore, all Directors have indicated they will be taking up additional shares in the second round. During the second round of the Rights Issue, "the oversubscription period," in excess of 27 eligible record shareholders plus a number of street name holders through the Depository Trust Company (DTC), who fully subscribed during the initial period are entitled to purchase 116 million additional unsubscribed shares until the termination date which will be announced once the newly filed registration statement is declared effective by the SEC. The mailing of the Over Allotment Subscription documents took place on April 27, 2010. Mr. Bendall commented, "In addition to having exercised my entire share entitlement in the first round, a successful second round of the Rights Offering will enable Empire and GSLM to resume our drilling program for both the Bellevue and Thunderbolt sites." Empire is fully focused on its capital raising efforts. Empire and its management continue to meet with a diversity of potential investors and the Company is currently in the midst of negotiating financing with select sources worldwide. Assuming a successful conclusion of some or all of these negotiations, we plan to immediately resume our drilling program which includes drilling both the Bellevue and Thunderbolt sites within the next 24 months and ultimately complete our goal of commercializing oil and gas within the Tasmania Basin.
Issuance of Exploration License (EL) 14/2009 represents the first time that the Company has possessed both an exploration license covering seismically defined prospective structures and an economic valuation of those structures. (The economic valuation can be viewed at the company website at www.empireenergy.com) Notwithstanding the limited area granted in our new EL 14/2009 license, the Company's current market capitalization and share price is 200 times less than the third party estimated asset value of US$2.23 billion (AUD$2.48 billion). Additionally, we plan to seek to expand our exploration license area to the fullest extent we feel the Company is entitled based on the local laws in Tasmania, Australia.
Empire Energy Corporation is an international oil and gas exploration company, focusing on developing assets in one of the world's last virgin basins and to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Tasmania's central and northern basins.
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. For a more detailed discussion of risks and other factors related to Empire Energy Corporation International, please refer to 10-K and 10-Q reports filed with the U.S. Securities and Exchange Commission.
Contact: Malcolm Bendall
SOURCE Empire Energy Corporation International