Ann: Response to ASX Query re Price , page-2

It appears that serious interest in EEG is now kicking off.

From PROACTIVE INVESTORS AUSTRALIA:

at: http://www.proactiveinvestors.com.au/companies/news/26606/empire-energy-group-has-strong-market-backing-shares-up-36--26606.html

Empire Energy Group has strong market backing, 36% share spike attracts ASX query
Monday, March 19, 2012 by Angela Kean
Empire Energy Group (ASX: EEG) has caught the attention of the ASX following a 36% share price jump to A$0.225 intra-day today, up from last Friday’s opening price of $0.165.

The ASX, which issued a price and volume query, noted an increase in the number of securities traded, with nearly 6 million shares changing hands on Friday.

Nearly 7 million shares had been traded as of 2.44pm (AEDT) today.

Empire Energy responded to the ASX saying it is not aware of any information that has not been disclosed to the market that may explain the sudden investor interest.

The company did, however, note in its response that it holds significant oil and gas resources in the Marcellus and Utica shale formation in New York State.

“Recent statements attributed to New York State Governor Cuomo reported in an article from the New York Post have increased speculation that the New York State moratorium on hydraulic fracturing will be lifted in the near to medium term,” Empire Energy said.

The New York Department of Environmental Conservation imposed a formal suspension on oil and gas drilling using the high-volume hydraulic fracturing method in New York in December 2010.

In July last year, the State announced the suspension had ended following the release of recommendations for shale development and production.

About 85% of the Marcellus Shale, where Empire Energy holds a 220,000 gross acreage position, would be accessible to natural gas extraction under the new recommendations.

High-volume fracturing would be permitted on privately held land under rigorous and effective controls.

Empire Energy’s Marcellus Shale acreage contains an estimated P50 gas Resource of 49.5 billion cubic feet and potential oil Resource of 70.3 million barrels.

The company also has 180,000 gross acres in the Utica Shale, which is also covered by the hydraulic fracturing review and new recommendations.

Here Empire Energy has discovered shale thicknesses of between 150 and 300 feet. The acreage has a P50 gas Resource of 5 trillion cubic feet.
The New York Department of Environmental Conservation could begin issuing permits for high volume hydraulic fracturing before mid-year.

Empire Energy also mentioned in its response to the ASX that it continues to review oil and gas acquisition opportunities as part of its strategy to aggregate small to medium size oil and gas producing assets within the U.S.