Empire Energy Corporation says that Mark Callaway has joined the Board as an Executive Director, and will be responsible for Corporate Finance and Business Development.

Mark Callaway, FCA, is a Fellow of the Institute of Chartered Accountants in England and Wales, and has held various CEO and CFO positions at country and international level for Shell over a 24-year period, including many years in French West Africa and a prolonged stay in Kazakhstan where he was the Chief Financial Officer of the North Caspian Sea Consortium which discovered Kashagan, a world-class oil field.

On behalf of the Company, Mr. Callaway said “The Company has executed term sheets with a lender which on completion the Company anticipates will provide AUD$2.53 million to continue drilling the Bellevue #1 well and an additional AUD$7.5 million for continued drilling operations. I believe that this will provide the Company with a sound basis to explore and develop its world-class opportunities in the near future.”

General terms agreed for the proposed financing provide a convertible loan of GB Pounds 1,150,000 (AUD$ 2.53 Million) to be used by Empire to resume drilling the Bellevue #1 well with the equipment recently purchased. In addition, the proposed financing would allow Empire to raise up to US$5 million (AUD$ 7.5 million) through sale of common stock for continued drilling operations.

The availability of funding under the Loan is subject to legal and financial due diligence and the satisfaction of certain terms and conditions of the Loan. The Board fully committed to satisfying the drawdown conditions of the facility, the proceeds of which are expected to be available within 10 days. The Company has as an interim measure arranged a bridging facility which will make approximately US$ 500 thousand immediately available.

Drilling had been delayed due to promised finance not being provided in a timely manner. The outstanding AUD$1.14 million owing under an earlier funding agreement remains unpaid, resulting in the continued delay of the resumption of drilling the Bellevue #1 well.

Said Empire founder and CEO Mr. Malcolm Bendall, "The appointment of Mark Callaway to the Board is part of a policy to reinforce the Company’s capacity to manage the significant growth which the Company is expected to undergo as the drilling program proceeds, and the Company expects to begin oil and gas development and production.

"We expect the financing deals will give us up to AUD$10 million in funds to resume drilling at our Bellevue #1 well site using the Hunt Energy #3 rig where we have already drilled the top 272m (892 feet) of top hole, and to continue our drilling program to additional wells without delay. The announced rights offering, when fully subscribed, will bring us up to another AUD$12 million to continue the drilling program."

Tags: Empire Energy