acquisition..ann.

) subsidiary, Empire Energy USA, has entered into a Letter of
Intent to acquire an E&P company in Pennsylvania, USA.
The letter is subject to usual due diligence, operational review
and confidentiality conditions.
Empire believes the due diligence program will take 30 days to
complete.
Operations of the target company are within proximity of Empire's
existing operations and add to core acreage for future development.
All operations will be merged within Empire's existing field
operations.
The acquisition which includes around 11,200 gross acres will
increase existing production by around 68pc, 1P reserves by around 45pc,
2P reserves by 90pc and 3P by 150pc.
A significant portion of the 2P and 3P reserves should be
reclassified as either 1P or 2P on completion of due diligence.
Cost of the acquisition (excluding potential Marcellus shale
reserves) is equivalent to acquiring 2P reserves at US23c/Gj.
Gross acreage includes both shallow (Devonian) and deep rights
(for potential Marcellus shale development).
The ultimate objective is to reach a critical mass where Empire
can be listed on a US Stock Exchange