Initial Funds from Empire Energy's $5 Million Note Disbursed: Hunt Energy to Commence Drilling Tasmanian Wells

Empire Energy Corporation International (OTCBB: EEGC) today reported that the initial AUD $2.7 million of the AUD $5 million funding relating to the recent Note Payable and Memorandum of Understanding signed with Smart Win International Limited has been drawn by Empire and contract driller Hunt Energy has now been prepaid to substantially cover its cost of drilling the first well. A total of AUD $3.1 million has been paid to date in relation to this agreement with Hunt Energy. This payment clears the way for Hunt Energy to dispatch its Rig #3 to Empire’s Tasmanian Basin license area SEL 13/98. Hunt is expected to commence drilling there when site preparation is complete and permits are finalized, said Empire. The balance of the $2.7 million initial disbursement will be used by Empire’s wholly owned subsidiary, Great South Land Minerals, Ltd. (GSLM), to cover additional project costs and working capital expenses. The remaining $2.3 million available under the Note should be drawn by Empire, with Smart Win’s agreement, as work progresses on drilling this first well and possibly a second well on SEL 13/98. Smart Win has an exclusive option under the Memorandum of Understanding to cancel the $5 million Note and commit up to $40 million in additional funding in return for up to a 50 percent stake in the license area. A Joint Venture agreement that would provide for this expansion of the investment and the drilling of additional wells is intended to be finalized by the end of this month. "With this payment to Hunt Energy, we have taken yet another step closer towards fulfilling our objectives,” said Empire chief executive Malcolm Bendall. "Finally, after years of scientific and geologic research, we can at last say that the drilling contractor has been contracted and paid for and will soon be under way.” Larry Werecky, Managing Director of Hunt Energy, added, "We look forward to devoting our full resources and technologies to working with Empire and GSLM on this exciting project. We have previously been involved in opening new territories and believe this Tasmanian Basin to be a great prospect.” According to Empire, SEL 13/98 may hold undiscovered prospective petroleum resources of between 535 million and 2.29 billion barrels, potentially valued at between $67 billion and $286 billion based on a price of $125 per barrel. Hunt Energy is one of Australia’s foremost oil and gas drilling companies, with rigs and crews that meet all necessary Australian and world standards and qualifications. Since 1996, the company has completed approximately 100 wells in several different basins across that country. Empire Energy Corporation is an international oil and gas exploration company, focusing on developing assets in one of the world's last virgin basins and becoming a leading low-cost finder of hydrocarbons. The Company is currently operating in Tasmania's central and northern basins. This press release contains forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Empire's ability to successfully acquire resources and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements. For a more detailed discussion of risks and other factors related to Empire Energy Corporation International, please refer to its 10-KSB and 10-Q reports filed with the U.S. Securities and Exchange Commission.