SOURCE: Empire Energy

May 06, 2008 09:00 ET

New Analyst Report Says Empire Energy to Commence Tasmanian Drilling Program by August; Rates Company 'Speculative Buy' With Price Target of $0.94

LENEXA, KS--(Marketwire - May 6, 2008) - Empire Energy Corporation International (OTCBB: EEGC) today said that an analyst report published this morning by Beacon Equity Research projects that Empire, through its wholly-owned subsidiary Great South Land Minerals Limited, plans to commence drilling for oil and natural gas on its onshore Tasmanian Basin license area no later than August of this year.

This drilling program, says the report, will include eight to fifteen wells with prospective oil resources of 67 to 145 million barrels and natural gas resources of from 347 to 799 billion cubic feet.

These resources have a current value of from $7 to $15 billion, says the report.

However, says the report, a number of factors including the rising price of oil and special exploration incentives awarded by the Australian government could allow Empire "to easily outperform our production and cash flow targets."

The report, written by Beacon senior analyst Dr. Victor Sula, rates Empire a Speculative Buy with a price target of $0.94.

According to Dr. Sula, "EEGC's current $25 million market capitalization represents a tiny fraction of the estimated value of prospective oil and gas resources. As a result, we believe a higher valuation is warranted for EEGC."

Empire's Tasmanian license area covers more than 15,000 sq. km., making it among the largest frontier basin leases in the free world controlled by a single entity. The company has invested over $30 million in gathering seismic and other scientific data, as well as several independent expert reports, on this area. These reports all indicate the strong probability that large oil and natural gas resources exist within it.

The company is currently pursuing both short- and long-term financing, including joint venture arrangements, intended to fund its upcoming drilling operations in the area.

Further details on these financings are expected to be announced in the near future, said Empire.

Today's analyst report may be accessed in its entirety at www.beaconequity.com or at www.empireenergy.com.

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 which are based on the current expectations of the management of Empire Energy Corporation Int'l only, and actual results may differ materially. For a more detailed discussion of risks and other factors related to Empire Energy Corporation Int'l, please refer to its 10-KSB and 10 QSB reports filed with the U.S. Securities and Exchange Commission.

Contact Information

  • Contacts:
    John Garrison
    President
    Empire Energy
    (877) 663-2310

    Rick Eisenberg
    Eisenberg Communications
    (212) 496-6828