First Diversified Financial Services (FDFS) is to raise funds from US financial institutions and mutual funds of up to US$11.35 million (with a minimum of US$4.42 million).
This will be spent recording seismic and drilling up to five wells in five oil and gas prospect areas within four of Empire’s onshore Perth Basin petroleum exploration permits. Empire will operate all of the seismic and drilling programs.
Empire plans to expend the capital raised over two years. During the first half of 2005, it has budgeted US$4.42 million to drill the Moriary-1 oil exploration well in exploration permit EP 426 and acquire seismic surveys over the Gingin Gasfield and Gingin West Prospect, the Yeal Prospect, the Wellesley Prospect and the Mullering Anticline.
In late 2005 and the first half of 2006, Empire has budgeted US$6.93 million to drill the Gingin West Gas Prospect and the Wellesley Gas Prospect, as well as drilling an oil exploration well on the Cataby/Mullering Anticline. But the individual drilling prospects nominated may change as the late 2005-2006 drilling program will depend on the results of the interpretation of the seismic surveys acquired in 2005.
The funding will be sought by a newly incorporated limited liability company in the US. The US$11,350,000 target will purchase this investing entity a 40% interest in the project areas. Lesser amounts will purchase a pro rata interest.
If FDFS fails to raise US$4,420,000 the Investing Entity will not earn any interest in the Project Areas. Empire’s six permits cover an area of 4.4 million acres which is just under 50% of the onshore part of the Basin.
