SOURCE: Empire Energy Corporation International

June 10, 2008 09:00 ET

Ongoing Analysis of Scientific Data Suggests Significantly Expanded Potential of Empire Energy's Tasmanian Basin Wells

LEAWOOD, KS--(Marketwire - June 10, 2008) - Empire Energy Corporation International (OTCBB: EEGC) today said that a recently updated analysis of seismic and geophysical data gathered last year by Solo Geophysics (gravity), Terrex Seismic and Empire's wholly owned subsidiary, Great South Land Minerals Ltd. (GSLM), indicates that Empire's Tasmania Basin wells may have significantly higher commercial value than previously announced.

According to the ongoing Monte Carlo modeling of the growing volume of data on part of the Tasmanian basin, Empire's Bellevue and Interlaken well sites may have undiscovered prospective petroleum resources (P50) of 665 million barrels, an estimate four to ten times the initial estimates of prospective petroleum resources for these wells announced in a May 6 research report published by Beacon Equity Research.

Monte Carlo modeling of the Bellevue structure alone suggests the well could contain between 283 million barrels (P90) and 1.26 billion barrels (P10) of undiscovered prospective petroleum resources.

Empire's first 14 wells may hold undiscovered prospective petroleum resources of between 535 million barrels (P90) and 2.29 billion barrels (P10) of undiscovered petroleum resources, according to the modeling (see chart).

Undiscovered Prospective Resources -- Volume Ranking of 14 Sites.

             Monte Carlo      P90 (Low)   P50 (Best)   P10 (High)
Ranking        Estimate*      (mmbbl's)    (mmbbl's)    (mmbbl's)
           ----------------- ------------ ------------ ------------
1                Bellevue #1          283          620        1,256
           ----------------- ------------ ------------ ------------
2             Thunderbolt #1          116          243          468
           ----------------- ------------ ------------ ------------
3               Bracknell #1           49          100          194
           ----------------- ------------ ------------ ------------
4              Interlaken #1           21           45           92
           ----------------- ------------ ------------ ------------
5            Butlers Rise #1           18           40           79
           ----------------- ------------ ------------ ------------
6                  Cressy #1            8           16           29
           ----------------- ------------ ------------ ------------
7                Hummocky #1            8           16           30
           ----------------- ------------ ------------ ------------
8                  Cressy #2            8           16           30
           ----------------- ------------ ------------ ------------
9              Hunterston #2            6           12           23
           ----------------- ------------ ------------ ------------
10              Macquarie #1            5           12           24
           ----------------- ------------ ------------ ------------
11              Stockwell #1            4           11           25
           ----------------- ------------ ------------ ------------
12                 Scotts #1            4            8           15
           ----------------- ------------ ------------ ------------
13              Lonnavale #2            3            7           16
           ----------------- ------------ ------------ ------------
14                 Quamby #1            2            5           10
           ----------------- ------------ ------------ ------------
Totals                                535        1,151        2,291
           ----------------- ------------ ------------ ------------
15                 Scotts #1     Unranked     Unranked     Unranked
           ----------------- ------------ ------------ ------------
16              Macquarie #2     Unranked     Unranked     Unranked
           ----------------- ------------ ------------ ------------
17                Steppes #1     Unranked     Unranked     Unranked
           ----------------- ------------ ------------ ------------
18         Derwent Bridge #1     Unranked     Unranked     Unranked
           ----------------- ------------ ------------ ------------
19                Nile River     Unranked     Unranked     Unranked
           ----------------- ------------ ------------ ------------
mmbbl's = million US barrels (or BOE)

The above data is scheduled to be evaluated in an updated Competent Persons Report (CPR) issued by Empire's independent oil and gas consulting firm, RPS Energy. More detailed information on the above sites, including the current lead and prospect mosaics of geological and seismic data, is posted on the EEGC/GSLM website; see www.gslm.com.

GSLM completed 271 km (168 miles) of 2D seismic in 2007, achieving a total of 1350km (838 miles). Evaluation of this data and all of the license property has identified the fourteen prospects and leads and five potential leads above, all of which are being analyzed. From this evaluation of the property, planning for additional seismic exploration work is underway for the forthcoming summer. The company's 2007 $300,000 gravity survey has helped considerably in the definition of these leads and prospects, including the Bellevue structure, which has been seismically mapped using 108km (67 miles) of this data. In light of the findings, the Bellevue #1 drill site has been identified.

Monte Carlo modeling is a statistical process that simulates multiple variables to get a range of probable results. This process is frequently utilized in the oil and gas industry to estimate the commercial potential of new acreage.

"We are indeed excited by this modeling," said Dr. Clive Burrett, Managing Director, Great South Land Minerals. "This new data confirms what we have believed for some time, that there are enormous prospective petroleum resources within the Tasmania Basin.

"We look forward to commencing drilling for these resources as soon as government approvals and funding negotiations have been completed."

Planning is well advanced for the late 2008-early 2009 (southern hemisphere summer) seismic campaign, which will target upgrading leads to prospects, clarifying targets and shooting more lines in the 60% of the tenement that has still to be explored seismically.

Malcolm Bendall, CEO and founder of Empire, praised the professional staff of GSLM. "We sincerely appreciate Dr. Burrett and his staff who are working constantly to use all available data, technology and expertise to update and improve our analysis. These sites identified and described in detail leads and mosaics on our web site are evidence of their effort and of the value we believe they have identified in our license property."

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 becoming a leading low-cost finder of hydrocarbons. The Company is currently operating in Tasmania's central and northern basins.

Definitions:

Undiscovered Resources

Undiscovered resources are defined as those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion of undiscovered resources is classified as prospective resources.

Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. They are technically and economic to recover.

Resources Categories

Due to the high uncertainty in estimating resources, evaluations of these assets require some type of probabilistic method. Expected value concepts and decision tree analyses are routine; however, in high risk, high-reward projects, Monte Carlo simulation can be used. In any event, three success cases plus a failure case should be included in the evaluation of the resources.

When evaluating resources, in particular contingent and prospective resources, the following mutually exclusive categories are recommended:

--  Low Estimate: This is considered to be a conservative estimate of the
    quantity that will actually be recovered from the accumulation. If
    probabilistic methods are used, this term reflects a P90 confidence level.
--  Best Estimate: This is considered to be the best estimate of the
    quantity that will actually be recovered from the accumulation. If
    probabilistic methods are used, this term is a measure of central tendency
    of the uncertainty distribution (most likely/mode, P50/median, or
    arithmetic average/mean.)
--  High Estimate: This is considered to be an optimistic estimate of the
    quantity that will actually be recovered from the accumulation. If
    probabilistic methods are used, this term reflects a P10 confidence level.
    

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 Int'l, please refer to its 10-KSB and 10 Q 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