I thought it might interest shareholders to know that on the...

I thought it might interest shareholders to know that on the 25^th October 2016 I placed a couple of questions to Empire via the Link Market Services website when entering my voting for the AGM.

Today I received responses from Ms Rachel Rees, the CFO and Company Secretary of Empire (The Chairman Mr Iannello was cc’d in on the response for the investigation question).

I note that the said investigation is still ongoing (coming up to 5 months!!!). With respect to the Chairman’s requests which Ms Rees mentions, they relate to the Chairman requesting me not to disclose any of the said information to anyone else amid veiled threats of legal action and removing me from the AGM.

Empire’s responses are as follows (note I have cut and paste the contents of the entire response from Empire):

Question 1: “Can you please advise the outcome of the Board Investigation which was commenced by the Empire Board in June 2016 into current Director Mr Philip Garratt?”

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Hi Kent,

Thank you for your question submitted via the Link Market Services website ahead of the Empire Annual General Meeting being:

“Can you please advise the outcome of the Board Investigation which was commenced by the Empire Board in June 2016 into current Director Mr Philip Garratt?”

Please be advised that the investigation is ongoing and the Chairman repeats his requests in previous letters to you, most recently on 7 October 2016.



Kind regards
Rachel Rees

Chief Financial Officer & Company Secretary
EMPIRE OIL & GAS NL
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and;
Question 2: “Can you please advise the impact of the water ingress on the Red Gully-1 B Sands and how that will impact the company in its ability to supply gas to Alcoa under the GSA?”
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Hi Kent,

Thank you for your question submitted via the Link Market Services website ahead of the Empire Annual General Meeting being:

“Can you please advise the impact of the water ingress on the Red Gully-1 B Sands and how that will impact the company in its ability to supply gas to Alcoa under the GSA?”

Please be advised that the September 2016 Quarterly Report provided an update on this matter, see excerpt below.

“In late March the RG-1 well began producing formation water. The water-gas-ratio has gradually increased from a rate of 4.0 bbls/MMscf to a stable rate of 9.0 bbls/MMscf during the September quarter. The RG-1 well continues to consistently deliver gas nominations. Empire is building a geological and vertical lift model to predict future reservoir performance.

Empire initiated the RGPF Produced Water Handling Upgrade Project during the September quarter. This project will increase the RGPF produced water handling capacity from the current 50 bbls to 500 bbls of formation water per day. The RGPF Produced Water Handling Upgrade Project is on schedule to be operational by 1 January 2017.

Overall this upgrade will divert formation water away from the RGPF condensate stabilisation heater. This will allow the heater to operate more efficiently and provide better stabilised Red Gully condensate throughout winter months.”



Kind regards
Rachel Rees

Chief Financial Officer & Company Secretary EMPIRE OIL & GAS NL

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Should any shareholder have any further questions, please feel free to contact me on my email address [email protected]

Regards
Kent Quinlan