Empire Petroleum Issues Correction for Previously Announced Proposed Rights Offering

Rhea-AI Summary

Empire Petroleum Corporation (EP) corrects information regarding its Rights Offering to raise up to $25 million, offering 4,132,232 shares at $6.05 per share. The correction does not alter other details from the initial announcement.

Financial Analyst

Empire Petroleum Corporation's Rights Offering is a strategic financial move aimed at raising capital, which is crucial for funding operations, exploration and potential acquisitions. The correction in the terms of the offering, from individual share entitlement to aggregate share availability, is a technical but significant detail for investors. The offering price of $6.05 per share will attract investors based on the company's perceived value and growth prospects. It is essential to analyze the offering's pricing in relation to the current stock price and historical performance to assess its attractiveness. Investors should also consider the dilution effect of such an offering, as an increase in the number of shares outstanding can lead to a reduction in earnings per share and potentially affect the stock price.

Market Research Analyst

The oil and gas sector is highly volatile and sensitive to global events that can affect commodity prices. Empire Petroleum's Rights Offering reflects a proactive approach to capital management within this context. The success of this offering could be indicative of investor confidence in the company's asset portfolio and management's ability to leverage these assets in a challenging market. It is important to evaluate market trends, including the impact of energy prices, regulatory changes and competitive dynamics, to understand how these factors might influence the company's future performance and the potential return on investment for those participating in the Rights Offering.

Legal Expert

From a legal standpoint, the correction in the Rights Offering announcement ensures compliance with SEC regulations and prevents potential legal challenges or investor disputes that could arise from misinformation. It is imperative that companies adhere to strict disclosure standards to maintain transparency with investors. The filing of a prospectus supplement with the SEC is a critical step that provides detailed information about the Rights Offering, allowing investors to make informed decisions. Potential investors should closely review this document, as it will outline the terms, risks and intended use of the proceeds, which are key factors in evaluating the investment opportunity.

TULSA, Okla.--(BUSINESS WIRE)-- Empire Petroleum Corporation (NYSE American: EP) ("Empire" or the "Company"), an oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, announced today a correction to its prior announcement regarding its subscription rights offering (“Rights Offering”) with a record date of the close of business on March 7, 2024 (the “Record Date”) pursuant to which it intends to raise gross proceeds of up to approximately $25 million. The initial release indicated that each subscription right entitled the holder to purchase 4,132,232 shares at the subscription price of $6.05. It should have indicated that the Company is offering holders the right to purchase an aggregate of 4,132,232 shares of Common Stock upon exercise of the subscription rights at a subscription price of $6.05 per share.

This press release should be read in conjunction with the initial press release. These corrections do not change any other information reported in the initial press release.

The Rights Offering will be more fully described in the prospectus supplement filed with the Securities and Exchange Commission (“SEC”) on or about the Record Date. Once available, a copy of the prospectus, prospectus supplement or further information with respect to the Rights Offering may be obtained by contacting Securities Transfer Corporation, the subscription and information agent for the Rights Offering, at (469) 633-0101.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About Empire Petroleum
Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. More information about Empire can be found at www.empirepetroleumcorp.com.

Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s estimates, strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2022, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228689149/en/

Empire Petroleum Corporation:

Mike Morrisett, President and CEO

539-444-8002

info@empirepetrocorp.com



Investor Relations:

Al Petrie Advisors

Wes Harris, Partner

281-740-1334

wes@alpetrie.com

Source: Empire Petroleum Corporation

FAQ

What is the purpose of Empire Petroleum Corporation's Rights Offering?

Empire Petroleum Corporation (EP) intends to raise gross proceeds of up to approximately $25 million through its Rights Offering.

How many shares are being offered in Empire Petroleum Corporation's Rights Offering?

Empire Petroleum Corporation (EP) is offering holders the right to purchase an aggregate of 4,132,232 shares of Common Stock at a subscription price of $6.05 per share.

What was the correction made by Empire Petroleum Corporation regarding the Rights Offering?

Empire Petroleum Corporation (EP) corrected the information to clarify that each subscription right entitles the holder to purchase 4,132,232 shares at $6.05 per share, not 4,132,232 shares at the subscription price of $6.05.

When is the record date for Empire Petroleum Corporation's Rights Offering?

The record date for Empire Petroleum Corporation's (EP) Rights Offering is the close of business on March 7, 2024.