TULSA, Okla.–(BUSINESS WIRE)–Sept. 15, 2006–Empire Petroleum Corporation (OTCBB:EMPR), a Tulsa, Oklahoma-based company, announced today that drilling operations were commenced September 14, 2006 on the Empire Cobble Cuesta 1-12-12N-34E, Nye County, Nevada. It is expected that the total depth of this exploratory well will be 6,500 feet and the well should take 25 to 30 days to drill.
Empire said the well was being drilled on a large surface structure, which was further defined by gravity data, photo-geologic mapping, satellite imagery, detailed surface mapping and a new 2-D seismic program. Additionally, a test well drilled about four miles from the Cobble Cuesta location had good oil shows.
Empire owns a ten percent (10%) working interest in 44,604 lease acres and has entered into an agreement to earn an additional thirty percent (30%) interest by paying forty-five percent (45%) of the costs of drilling the Cobble Cuesta well. In addition, Empire has a forty percent (40%) interest in an another 30,917 lease acres, bringing the total lease acres in the prospect to 75,521.
The Company has completed a private placement of 7,250,000 shares at $0.20 per share for a total of $1,450,000. For each four shares purchased the buyer received one share purchase warrant which is exercisable for one year at $0.50 per share. The total number of warrants issued was 1,812,500. These funds will be used to pay Empire's well costs.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties incident to the Company's business, including risks inherent in oil and gas exploration and development and other risks described in the reports and statements filed by the Company with the Securities and Exchange Commission. As a result, actual results may vary materially from those described in the forward-looking statements.
Empire Petroleum Corporation, Tulsa
Albert E. Whitehead, 918-488-8068