TULSA, Okla.–(BUSINESS WIRE)–Empire Petroleum Corporation (OTCBB:EMPR), a Tulsa, Oklahoma-based company, announced today that it has finalized plans to re-enter and test the Empire Cobble Cuesta 1-12-12N-34E, in Nye County, Nevada. This well was drilled to 5,198 feet and suspended last October in order to allow Empire and its partner time to thoroughly analyze the results gained from the drilling operations and complete an evaluation of the log suite run in the well. Of particular interest is the FMI or fracture analysis log. This log evaluation by Schlumberger shows several hundred feet of fracturing, much of which coincided with oil shows. Testing will commence in a heavily fractured area near the bottom of the well. A drilling rig has been contracted and operations should commence about April 12, 2007.
Empire owns a 10% working interest in 44,604 acres and will earn an additional 30% working interest when the Cobble Cuesta 1-12 well is completed as an oil or gas well or abandoned as a dry hole. The Company also has a 40% working interest in an additional 30,917 acres contiguous to the 44,604 acres giving the Company an interest in 75,521 acres in the prospect.
In order to finance the Company’s share of the testing and completion or abandonment costs, Empire has completed a private placement of 5,000,000 shares at $0.20 per share for a total of $1,000,000. For each four (4) shares purchased, a buyer received one (1) share purchase warrant which is exercisable for one year at $0.50 per share. The total number of warrants issued was 1,125,000.
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.
Contacts
Empire Petroleum Corporation
Albert E. Whitehead, 918-488-8068
Chairman & CEO