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Under the arrangement Empire has acquired a 34% interest in EP-104, 34% interest in R1 and a 46% interest in L98-1.
This increases Empire's total interests in the area to 54% in EP-104, 54% in R1 and a 49% in L98-1.
Payment for the assets will be $250,000 on Empire's declaration of a commercial oil or gas discovery and $750,000 out of a proportion of net cash flow from production.
Retention lease R1 consists of three blocks covering 250sq.km and includes the Point Torment prospect which has reserves estimated by Empire to be 80bcf gas and 10 million barrels of oil.
In 1992 the Point Torment-1 well tested gas at 4.3mmcfd, however there was no significant gas market and therefore no follow-up appraisal drilling was done.
R1 and L98-1 contain the Valentine prospect, which Empire estimates to possibly contain 200 million barrels of oil or 1.2tcf of gas. Currently the joint venture is looking to farm-out the drilling.
