Empire Energy Gains Qualification in Nicaragua forFirst Ever Oil Exploration Concession Under...

Business Editors

OVERLAND PARK, Kan.--(BUSINESS WIRE)--May 24, 2000

Empire Energy Corporation (OTCBB:EECI) announced today that it has made significant progress in gaining a hydrocarbon exploration contract under the new law in the Central American nation of Nicaragua.

Empire Energy owns 50.5% interest in Industria Oklahoma-Nicaragua S.A., a firm that has been officially domiciled in Nicaragua and is now qualified to pursue a hydrocarbon exploration contract in Nicaragua.

In a Board of Directors meeting of the Energy Ministry of Nicaragua (Institute de Nicaraguan Energia -- INE), the application for qualification was formally signed by INE declaring Industria Oklahoma-Nicaragua S.A. to be technically, financially and legally qualified to apply for a contract to explore for oil and gas both onshore and offshore.

Empire and Industria Oklahoma-Nicaragua S.A. plan to proceed immediately, once the area is officially opened, to comply with government requirements to attempt to obtain a concession agreement (contract) and begin exploration.

As profiled in the Oil and Gas Journal in February 2000, the vast landmass of Nicaragua is considered to be one of the few remaining areas yet to be explored for oil and gas. Due to various circumstances in Nicaragua over the last 20 years, the opportunity for exploration has not been present. Bryan S. Ferguson, Executive Vice President of Empire Energy, said: "The good fortune to be able to explore on virgin land possessing such enormous potential for oil and gas reserves is rare in today's world. The opportunity for a small independent oil company to be in this unique position provides a great deal of excitement and affords potentially significant value for us and our shareholders."

"The opportunity for a large exploration contract is part of Empire's strategy to build its asset base and grow in its core areas of oil and gas exploration and production," said Norman L. Peterson, Empire President and CEO. "Nicaragua has been an area of focus for us for a number of years."

Harold Witcher, President of Industria Oklahoma-Nicaragua S.A., has worked on this prospect gathering geological data for nearly 30 years since the early 1970s, and feels that the opportunity exists for very significant oil and gas reserves. "Our reconnaissance strongly suggests numerous anticlines and indications exist to support ideal source, reservoir rock and thermal gradients. It's Texas a hundred years ago!" said Mr. Witcher. Numerous surface oil seeps are present throughout the country, some of which produced the opportunity to characterize the oil. Analytical data support a 45 to 55 API oil with 0.11 ppm sulfur.

The hydrocarbon law in Nicaragua will facilitate increased private sector involvement in the country's energy sector and could provide significant commercial opportunities for U.S. companies. The law is designed to stimulate oil exploration in the country through an economic arrangement attractive to potential investors. Currently, all of Nicaragua's energy needs are satisfied by imported petroleum. The country's only refinery, located in Managua, is currently used to process imported crude and will likely be employed to process any product produced in country.

Empire Energy Corporation is a publicly traded energy company engaged in the acquisition, exploration and development of oil and gas properties and the marketing of natural gas and crude oil. Company headquarters are in Overland Park, Kansas, and its common shares are traded on the OTC Bulletin Board under the symbol EECI (please note that the ticker symbol for Empire recently changed from EECID to EECI). For more information, contact the company directly at 913/469-5615 or visit their website at www.empireenergy.com.

Forward-Looking Statements

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address the planned purchase of the concession, future production, reserve potential, exploration drilling and events or developments that the company expects are forward-looking statements. Although Empire Energy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include oil and gas prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions.