Filed Pursuant to Rule 424(b)(5)
Registration No. 333-260570
PROSPECTUS SUPPLEMENT
(To Prospectus dated November 5, 2021)
$50,000,000
Common Stock
We have
entered into an Equity Distribution Agreement (the “Distribution Agreement”) with Raymond James & Associates, Inc. (“Raymond
James”), dated June 23, 2022, relating to shares of our common stock, par value $0.001 per share, or the common stock, offered by
this prospectus supplement and the accompanying prospectus. In accordance with the terms of the Distribution Agreement, we may offer and
sell shares of our common stock having an aggregate offering price of up to $50,000,000 from time to time through Raymond James, acting
as agent.
Our common
stock is listed on the NYSE American under the symbol “EP.” The last reported sale price of our common stock on the NYSE American
on June 22, 2022 was $14.01 per share.
Sales of
our common stock, if any, as contemplated by this prospectus supplement and the accompanying prospectus may be made in any method permitted
by law to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended
(“the Securities Act”), including sales made directly on or through the NYSE American, the existing trading market for our
common stock, sales made to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices
prevailing at the time of sale or at prices related to such prevailing market prices, and any other method permitted by law, including
in privately negotiated transactions. Raymond James is not required to sell any specific amount, but will act as our sales agent using
commercially reasonable efforts, consistent with its normal trading and sales practices. There is no arrangement for funds to be received
in any escrow, trust or similar arrangement.
Except as
otherwise described in the Distribution Agreement, Raymond James will be entitled to compensation at a commission rate of up to 3.0% of
the gross sales price per share sold under the Distribution Agreement. See “Plan of Distribution” beginning on page S-9 for
additional information regarding the compensation to be paid to Raymond James. In connection with the sale of the common stock on our
behalf, Raymond James will be deemed to be an “underwriter” within the meaning of the Securities Act and the compensation
of Raymond James will be deemed to be underwriting commissions or discounts. We also have agreed to provide indemnification and contribution
to Raymond James with respect to certain liabilities, including liabilities under the Securities Act.
Investing
in our common stock involves significant risks. Please carefully consider the risks discussed in “Risk Factors” beginning
on page S-4 of this prospectus supplement and in our filings with the Securities and Exchange Commission (“the SEC”), that
are incorporated by reference in this prospectus supplement before making a decision to invest in our common stock.
Neither the SEC nor any state
securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement
or the accompanying prospectus. Any representation to the contrary is a criminal offense.
Raymond
James
The date of this prospectus
supplement is June 23, 2022.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
SuPPLEMENT
This prospectus supplement and the accompanying
base prospectus are part of a registration statement on Form S-3 that we filed with the SEC, using a “shelf” registration
process. We provide information to you about this offering in two separate documents that are bound together: (1) this prospectus supplement,
which describes the specific details regarding this offering; and (2) the accompanying base prospectus, which provides general information,
some of which may not apply to this offering. Generally, unless the context indicates otherwise, when we refer to this “prospectus,”
we are referring to both documents combined. If information in this prospectus supplement is inconsistent with the accompanying base prospectus,
you should rely on this prospectus supplement. However, if any statement in one of these documents is inconsistent with a statement in
another document having a later date (for example, a document incorporated by reference in this prospectus supplement), the statement
in the document having the later date modifies or supersedes the earlier statement as our business, financial condition, results of operations
and prospects may have changed since the earlier dates. You should also read and consider the additional information under the captions
“Incorporation of Certain Documents By Reference” in this prospectus supplement.
In making your investment decision, you should
rely only on the information contained or incorporated by reference in this prospectus supplement, in the accompanying base prospectus
and in any free writing prospectus with respect to this offering filed by us with the SEC. Neither we nor Raymond James have authorized
any person to provide you with different or additional information. If anyone provides you with different, additional or inconsistent
information you should not rely on it. This prospectus supplement and the accompanying prospectus do not constitute an offer to sell,
or a solicitation of an offer to purchase, any shares of common stock in any jurisdiction to or from any person to whom or for whom it
is unlawful to make such offer or solicitation in such jurisdiction. You should assume that the information appearing in this prospectus
supplement, the accompanying base prospectus, any free writing prospectus with respect to the offering filed by us with the SEC and the
documents incorporated by reference herein and therein is accurate only as of their respective dates or on the date or dates which are
specified in those documents. Our business, financial condition, results of operations and prospects may have changed since those dates.
We further note that the representations, warranties
and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein were made
solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties
to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties
or covenants were accurate only as of the date they were made. In addition, the assertions embodied in any representations, warranties
and covenants contained in such agreements may be subject to qualifications with respect to knowledge and materiality different from those
applicable to investors and may be qualified by information in disclosure schedules. These disclosure schedules may contain information
that modifies, qualifies and creates exceptions to the representations, warranties and covenants set forth in the agreements. Accordingly,
such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.
The registration statement containing the prospectus,
including exhibits to the registration statement, provides additional information about us and the securities offered under this prospectus
supplement and the base prospectus. We have filed and plan to continue to file other documents with the SEC that contain information about
us and our business. Also, we will file legal documents that control the terms of the securities offered by this prospectus as exhibits
to the reports that we file with the SEC. The registration statement and other reports can be read at the SEC website or at the SEC offices
mentioned under the heading “Where You Can Find More Information.”
This prospectus contains summaries of certain
provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information.
All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein have
been filed, will be filed or will be incorporated by reference as exhibits to the registration statement of which this prospectus is a
part, and you may obtain copies of those documents as described below under “Where You Can Find More Information.” We are
offering to sell shares of common stock only in jurisdictions where offers and sales are permitted. The distribution of this prospectus
supplement and the accompanying base prospectus and the offering of the common stock in certain jurisdictions may be restricted by law.
Persons outside the United States who come into possession of this prospectus supplement and the accompanying base prospectus must inform
themselves about, and observe any restrictions relating to, the offering of the common stock and the distribution of this prospectus supplement
and the accompanying base prospectus outside the United States. This prospectus supplement and the accompanying base prospectus do not
constitute, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy, any securities offered by
this prospectus supplement and the accompanying base prospectus by any person in any jurisdiction in which it is unlawful for such person
to make such an offer or solicitation.
PROSPECTUS SUPPLEMENT
SUMMARY
This summary highlights information contained
elsewhere in this prospectus supplement, the accompanying prospectus and the documents incorporated by reference into this prospectus.
Because this summary provides only a brief overview of the key aspects of the offering, it does not contain all of the information that
you should consider before investing in our common stock. You should read the entire prospectus carefully, including “Risk Factors”
beginning on page S-4, “Cautionary Note Regarding Forward-Looking Statements” beginning on page S-6 of this prospectus supplement
and under similar sections of the accompanying prospectus and the documents incorporated by reference, which are described under “Incorporation
of Certain Information by Reference,” before making an investment decision. As used in this prospectus supplement, unless otherwise
indicated, “we,” “our,” “us” or similar terms refer collectively to Empire Petroleum Corporation and
its subsidiaries.
Overview
We are an oil and gas company with current producing
assets in Texas, Louisiana, North Dakota, Montana and New Mexico. Our primary business is the exploration and development of oil and natural
gas interests. We are focused on internal growth through optimization of existing assets and targeted acquisitions of proved developed
assets with synergies with our existing portfolio of wells.
We use a combination of experienced field personnel
and third-party service providers to execute our mission. Our properties have reasonably predictable production profiles and cash flows,
subject to commodity price and cost fluctuations. We selectively participate in drilling and developmental activities in non-operated
properties. Decisions to participate in non-operated properties are dependent upon the technical and economic nature of the projects and
the operating expertise and historical track record of the operators.
Empire Louisiana acquired its assets in late
2018 and has 11 producing properties and three saltwater disposal wells in the following formations: Miocene, Frio, Cockfield and Wilcox.
Empire Louisiana’s assets primarily produce oil from properties with average WI of 58% and NRI of average operated NRI of 47%.
Empire New Mexico was formed when we purchased
producing assets from XTO in May 2021. These assets are located in Lea County, New Mexico and consist of a contiguous and consolidated
acreage position consisting of 48,000 gross (40,000 net) acres held by production from approximately 730 wells with an average WI of 72%
and average NRI of 61% and 14 RI wells with an average ORRI of 11% Empire New Mexico’s assets primarily produce oil with natural
gas and NGLs accompanying oil production. Empire New Mexico’s properties are in the following formations: Grayburg/San Andres (primary
source of production), Queen-Seven Rivers-Yates, Devonian, Abo, Blinebry, Tubb and Drinkard.
Empire North Dakota operates approximately 230
producing properties with an average WI of 89% and NRI of 61% in North Dakota and western Montana that were acquired in April 2019. These
properties primarily produce oil with some related gas production. Assets are located in the following formations: Madison (primary source
of production), Bakken, Duperow, Red River and Ratcliffe/Mission Canyon. Presence in these formations allows us to execute our mission
in areas with sustained impressive, near-flat production rates over the last five years and capitalize on operational improvements to
allow more immediate recovery of reserves.
In April 2020, Empire Texas acquired 139 gross
wells and approximately 30,000 net acres with an average operated WI of 96% and an average operated NRI of 79% as well as 77 miles of
gathering lines and pipelines with related facilities and equipment. Empire Texas owns concentrated acreage and stacked pay in the historically
prolific East Texas Basin. Assets are concentrated in the Fort Trinidad Field in Houston and Madison Counties with high working interest
and historical production from eight separate formations.
Corporate Information
Our corporate headquarters
are at 2200 South Utica Place, Suite 150, Tulsa, OK, with field offices in North Dakota, Texas, and New Mexico.
THE OFFERING
| Common stock offered by us |
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Shares of common stock having an aggregate
offering price of up to $50,000,000. The actual number of shares issued will vary depending on the sales price under this offering.
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| Plan of distribution |
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“At-the-market” offering that
may be made from time to time through our sales agent, Raymond James. See “Plan of Distribution” beginning on page S-9.
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| Use of proceeds |
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We intend to use the net proceeds from this offering, if any, for working capital and general corporate purposes. For more, see “Use of Proceeds”. |
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| Dividend policy |
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We have not declared or paid any cash or other dividends on our common stock, and do not expect to declare or pay any cash or other dividends on our common stock in the foreseeable future. |
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| Risk factors |
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You should consider carefully the risks discussed under the “Risk Factors” beginning on page S-4 of this prospectus supplement, as well as those described in our Annual Report on Form 10-K for the year ended December 31, 2021, and the other disclosures contained or incorporated by reference herein and therein. |
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| NYSE American symbol |
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EP |
RISK FACTORS
You should consider carefully the risks described below and
discussed under the section captioned “Risk Factors” contained in our Annual Report on Form 10-K for the year ended December
31, 2021, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended (“the Exchange Act”),
each of which is incorporated by reference in this prospectus supplement in their entirety, and in current reports on Form 8-K we file
after the date of this prospectus supplement, together with other information in this prospectus supplement, and the information and documents
incorporated by reference in this prospectus supplement, and any free writing prospectus that we have authorized for use in connection
with this offering before you make a decision to invest in our common stock. If any of the following events actually occur, our business,
operating results, prospects or financial condition could be materially and adversely affected. This could cause the trading price of
our common stock to decline and you may lose all or part of your investment. Many of the following risks and uncertainties and those contained
in the documents incorporated by reference herein are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global
business and economic environment as a result. The risks described below are not the only ones that we face. Additional risks not presently
known to us or that we currently deem immaterial may also affect our business, operating results, prospects or financial condition.
Risks related to this Offering
Resales of our common stock in the public market by our stockholders
as a result of this offering may cause the market price of our common stock to fall.
Sales of a substantial number of shares of our
common stock could occur at any time. The issuance of new shares of our common stock could result in resales of our common stock by our
current stockholders concerned about the potential ownership dilution of their holdings. In turn, these resales could have the effect
of depressing the market price for our common stock.
Our management team may invest or spend the proceeds of this offering
in ways with which you may not agree or in ways which may not yield a significant return.
Our management will have broad discretion over
the use of proceeds from this offering. We intend to use the net proceeds, if any, from this offering for working capital and for general
corporate purposes. Our management will have considerable discretion in the application of the net proceeds, and you will not have the
opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The net proceeds may be
used for corporate purposes that do not increase our operating results or enhance the value of our common stock. The failure of our management
to use these funds effectively could have a material adverse effect on our business and cause the market price of our common stock to
decline. Pending their ultimate use, we intend to invest the net proceeds in short-term, investment-grade, interest-bearing instruments.
These investments may not yield a favorable return to our stockholders.
The trading price of our common stock may continue to be volatile,
which could cause you to lose part or all of your investment.
The trading price of our common stock has been
highly volatile and could continue to be subject to wide fluctuations in response to various factors, some of which are beyond our control.
During the past twelve months, the sales price of our common stock ranged from a low of $6.00 to a high of $24.70 per share.
The stock market in general has experienced extreme
price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies.
As a result of this volatility, our securities
could experience rapid and substantial decreases in price, and you may be able to sell securities you purchase under this prospectus only
at a substantial loss to the price at which you purchased the securities in this offering.
In addition, if the market for energy related
stocks, or the stock market in general, experiences a loss of investor confidence, the trading price of our common stock could decline
for reasons unrelated to our business, financial condition, or results of operations. Further, in the past, following periods of volatility
in the overall market and the market price of a particular company’s securities, securities class action litigation has often been
instituted against these companies. If any of the foregoing occurs, it could cause our stock price to fall and may expose us to lawsuits
that, even if unsuccessful, could be costly to defend and a distraction to management.
A possible “short squeeze” due to a sudden
increase in demand of our common stock that largely exceeds supply may lead to additional price volatility.
Historically there has not been a large short
position in our common stock. However, in the future investors may purchase shares of our common stock to hedge existing exposure or to
speculate on the price of our common stock. Speculation on the price of our common stock may involve long and short exposures. To the
extent an aggregate short exposure in our common stock becomes significant, investors with short exposure may have to pay a premium to
purchase shares for delivery to share lenders at times if and when the price of our common stock increases significantly, particularly
over a short period of time. Those purchases may in turn, dramatically increase the price of our common stock. This is often referred
to as a “short squeeze.” A short squeeze could lead to volatile price movements in our common stock that are not directly
correlated to our business prospects, financial performance or other traditional measures of value for the Company or our common stock.
S-4
You may experience future dilution as a result of future equity
offerings.
In order to raise additional capital, we expect
to in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock.
We cannot assure you that we will be able to sell shares or other securities in any other offering at a price per share that is equal
to or greater than the price per share paid by investors in this offering, and investors purchasing shares or other securities in the
future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common stock
or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the price
per share in this offering.
A large number of shares may be sold in the
market following this offering, which may depress the market price of our common stock.
All of our shares of common stock
sold in the offering will be freely tradable without restriction or further registration under the Securities Act. As a result, a substantial
number of our shares of common stock may be sold in the public market following this offering, which may cause the market price of our
common stock to decline. If there are more shares of common stock offered for sale than buyers are willing to purchase, then the market
price of our common stock may decline to a market price at which buyers are willing to purchase the offered shares of common stock and
sellers remain willing to sell the shares of common stock.
The common stock offered under this prospectus
supplement and the accompanying prospectus may be sold in “at-the-market” offerings, and investors who buy shares at different
times will likely pay different prices.
Investors who purchase shares under this prospectus
supplement and the accompanying prospectus at different times will likely pay different prices, and so may experience different outcomes.
We will have discretion, subject to market demand, to vary the timing and numbers of shares sold, and there is no minimum or maximum sales
price. Investors may experience declines in the value of their shares as a result of share sales made at prices lower than the prices
they paid.
The actual number of shares we will issue under the sales agreement,
at any one time or in total, is uncertain.
Subject to certain limitations in the Distribution
Agreement and compliance with applicable law, we have the discretion to deliver a sales notice to Raymond James at any time throughout
the term of the Distribution Agreement. The number of shares that are sold by Raymond James after delivering a sales notice will fluctuate
based on the market price of the common shares during the sales period and limits we set with Raymond James. Because the price per share
of each share sold will fluctuate based on the market price of our common stock during the sales period, it is not possible at this stage
to predict the number of shares that will ultimately be issued.
CAUTIONARY NOTE
REGARDING FORWARD-LOOKING STATEMENTS
The information discussed
in this prospectus supplement and the accompanying prospectus, our filings with the SEC and our public releases include “forward-looking
statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, the Private Securities
Litigation Reform Act of 1995 (“the PSLRA”), or in releases made by the SEC. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of us to
differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements
that are not historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the
use of forward-looking language, such as the words “plan,” “believe,” “expect,” “anticipate,”
“intend,” “estimate,” “project,” “may,” “will,” “would,” “could,”
“should,” “seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other
variations of these terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made
pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor”
provisions of such laws.
By
their very nature, forward-looking statements require management to make assumptions that may not materialize or that may not be accurate.
Forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results, levels
of activity and achievements to differ materially from those expressed or implied by such statements. Factors that could cause results
to differ materially from the results discussed in such forward-looking statements include:
·
the need for additional capital and the use of proceeds, if any, from this offering;
·
unforeseen engineering, mechanical or technological difficulties in working over wells;
·
operating hazards;
·
competition from other natural resource companies;
·
the fluctuations of prices for oil, natural gas, and natural gas liquids;
·
unanticipated reductions in the borrowing base under the credit agreement we are party to;
·
the availability of sufficient pipeline and other transportation facilities and equipment to carry
our production to market and the impact of these facilities on our realized prices;
·
our ability to retain key members of senior management and key technical and financial employees;
·
the identification of and severity of adverse events and governmental responses to these or other
environmental events;
·
future ESG compliance developments and increased attention to such matters which could adversely
affect our ability to raise equity and debt capital;
·
the effect of our derivative activities;
·
impacts of world health events, including the COVID-19 pandemic;
·
the effects of governmental and environmental regulation; and
·
general economic conditions and other risks described in the Company’s filings with the SEC.
Many of these factors are
beyond our ability to control or predict. These factors are not intended to represent a complete list of the general or specific factors
that may affect us.
In addition, management’s
assumptions about future events may prove to be inaccurate. All readers are cautioned that the forward-looking statements contained in
this prospectus supplement and in the documents incorporated by reference into this prospectus supplement are not guarantees of future
performance, and we cannot assure any reader that such statements will be realized or that the forward-looking events and circumstances
will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors described
in “Risk Factors” included elsewhere in this prospectus supplement and in the documents that we include in or incorporate
by reference into this prospectus supplement, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and
our subsequent Exchange Act filings. All forward-looking statements speak only as of the date they are made. We do not intend to update
or revise any forward-looking statements as a result of new information, future events or otherwise, except as required by law. These
cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
USE OF PROCEEDS
We may issue and sell shares of our common stock having
aggregate sales proceeds of up to $50,000,000 from time to time. Because there is no minimum offering amount required as a condition to
close this offering, the actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this time.
We currently intend to use the net proceeds, if any,
from any offering of our common stock under this prospectus supplement for working capital and general corporate purposes.
The amounts and timing of our actual expenditures will
depend on numerous factors, including the factors described under “Risk Factors” in this prospectus supplement, the accompanying
prospectus and in the documents incorporated by reference herein, as well as the amount of cash used in our operations. We may find it
necessary or advisable to use the net proceeds for other purposes, and we will have broad discretion in the application of the net proceeds.
Pending the uses described above, we plan to invest the net proceeds from this offering in short- and intermediate-term, interest-bearing
obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government. We cannot
predict whether the proceeds invested will yield a favorable, or any, return.
DILUTION
If you invest in the securities
being offered by this prospectus supplement, your interest will be diluted to the extent of the difference between the public offering
price per share and the adjusted net tangible book value per share of our common stock after this offering.
Our net tangible book value
as of March 31, 2022, was approximately $13,931,364, or approximately $0.70 per share of common stock. Net tangible book value per share
represents the amount of total tangible assets (total assets less intangible assets) less total liabilities, divided by the number of
shares of our common stock outstanding as of March 31, 2022.
Dilution in net tangible
book value per share represents the difference between the amount per share paid by purchasers in this offering and the net tangible book
value per share of our common stock immediately after this offering. After giving effect to the sale of 3,217,503 shares of our common
stock in this offering (based on an assumed offering price of $15.54 per share, which was the closing price of our common stock on June
14, 2022), our as adjusted net tangible book value as of March 31, 2022 would have been approximately $63,931,364, or approximately $2.77
per share of common stock. This represents an immediate increase in net tangible book value of $2.07 per share of common stock to our
existing stockholders and an immediate decrease in net tangible book value of $12.77 per share of common stock to investors in this offering.
The number
of shares to be outstanding after this offering is based on 19,855,107 shares of our
common stock outstanding as of March 31, 2022 and excludes 2,748,600 additional shares
that are authorized for future issuance under outstanding warrants as of March 31, 2022, as well as 3,003,200 additional shares that are
authorized for future issuance under our equity incentive plans as of such date, of which 2,739,175 shares may be issued pursuant to
outstanding stock options and restricted stock units.
PLAN OF DISTRIBUTION
We have entered into an equity distribution
agreement with Raymond James, under which we may offer and sell up to $50,000,000 of our shares of common stock from time to time through
Raymond James acting as agent. The following summary of the material provisions of the Distribution Agreement does not purport to be a
complete statement of its terms and conditions. The Distribution Agreement has been filed as an exhibit to our Current Report on Form
8-K dated as of the date hereof.
Sales of our shares of common stock, if any,
under this prospectus will be made by any method that is deemed to be an “at the market offering” as defined in Rule 415(a)(4)
under the Securities Act, including sales made directly on the American NYSE, the existing trading market for our common stock, sales
made to or through a market maker other than on an exchange or otherwise, in negotiated transactions at market prices prevailing at the
time of sale or at prices related to such prevailing market prices, and any other method permitted by law, including in privately negotiated
transactions.
Each time we wish to issue and sell our shares
of common stock under the Distribution Agreement, we will notify Raymond James of the number of shares to be issued, the dates on which
such sales are anticipated to be made, any limitation on the number of shares to be sold in any one day and any minimum price below which
sales may not be made. Once we have instructed Raymond James, unless Raymond James declines to accept the terms of such notice, Raymond
James has agreed to use its commercially reasonable efforts consistent with its normal trading and sales practices to sell such shares
up to the amount specified on such terms. The obligations of Raymond James under the Distribution Agreement to sell our shares of common
stock are subject to a number of conditions that we must meet. We may instruct Raymond James not to sell common stock if the sales cannot
be effected at or above the price designated by us from time to time. We or Raymond James may suspend the offering of common stock upon
notice and subject to other conditions.
The settlement of sales of shares between us
and Raymond James is generally anticipated to occur on the second trading day following the date on which the sale was made. Sales of
our shares of common stock as contemplated in this prospectus supplement will be settled through the facilities of The Depository Trust
Company or by such other means as we and Raymond James may agree upon. There is no arrangement for funds to be received in an escrow,
trust or similar arrangement.
Except as otherwise described in the
Distribution Agreement, we will pay Raymond James a commission of up to 3.0% of the aggregate gross proceeds we receive from each
sale of shares of common stock. Because there is no minimum offering amount required as a condition to close this offering, the
actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this time. In addition, we have
agreed to reimburse Raymond James for the fees and disbursements of its counsel, payable upon execution of the Distribution
Agreement in addition to certain ongoing disbursements of its legal counsel up to a maximum aggregate amount of $150,000. We estimate that
the total expenses for the offering, excluding any commissions or expense reimbursement payable to Raymond James under the terms of
the Distribution Agreement, will be approximately $300,000. The remaining sale proceeds, after deducting any other transaction fees,
will equal our net proceeds from the sale of such shares.
Raymond James will provide written confirmation
to us before the open on the NYSE American on the day following each day on which our shares of common stock are sold by Raymond James
under the distribution agreement. Each confirmation will include the number of shares sold on that day, the aggregate gross proceeds of
such sales and the proceeds to us. We will report at least quarterly in our Quarterly Reports on Form 10-Q and Annual Reports on Form
10-K filed with the SEC the number of shares of common stock sold by or through Raymond James under the Distribution Agreement, the net
proceeds to us and the aggregate compensation paid by us to Raymond James in connection with those sales of our common stock.
If we have reason to believe that the common
stock is no longer an “actively-traded security” as defined under Rule 101(c)(1) of Regulation M under the Exchange Act, we
will promptly so notify Raymond James, and sales of the common stock under the Distribution Agreement will be suspended until that or
another exemptive provision under Regulation M has been satisfied in the judgment of us and Raymond James.
In connection with the sale of our shares of
common stock on our behalf, Raymond James may be deemed to be an “underwriter” within the meaning of the Securities Act, and
the compensation of Raymond James will be deemed to be underwriting commissions or discounts. We have agreed to indemnify Raymond James
against certain civil liabilities, including liabilities under the Securities Act. We have also agreed to contribute to payments Raymond
James may be required to make in respect of such liabilities.
The offering of our shares of common stock pursuant
to the Distribution Agreement will terminate upon the earlier of (i) the sale of all shares of common stock subject to the Distribution
Agreement and (ii) the termination of the Distribution Agreement as permitted therein. We and Raymond James may each terminate the Distribution
Agreement at any time upon ten trading days’ prior notice.
Raymond James and its affiliates may in the
future provide various investment banking, commercial banking, financial advisory and other financial services for us and our affiliates,
for which services they may in the future receive customary fees. In the course of its business, Raymond James may actively trade our
securities for its own accounts or for the accounts of its respective customers, and, accordingly, Raymond James may at any time hold
long or short positions in such securities.
A prospectus supplement and the accompanying
prospectus in electronic format may be made available on a website maintained by Raymond James, and Raymond James may distribute the
prospectus supplement and the accompanying prospectus electronically.
LEGAL MATTERS
Certain legal matters in connection with the
securities offered hereby will be passed on for us by Porter Hedges LLP, Houston, Texas. Mayer Brown
LLP, New York, New York, is acting as counsel to Raymond James in this offering.
EXPERTS
Our
consolidated financial statements appearing in our Annual Report on Form 10-K for the year ended December 31, 2020 have been audited by
HoganTaylor LLP, an independent registered public accounting firm, as stated in their report, which is incorporated herein by reference.
Such consolidated financial statements have been so incorporated in reliance upon the report of such firm given upon their authority as
experts in accounting and auditing.
Our
2021 consolidated financial statements appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021,
have been audited by Moss Adams LLP, an independent registered public accounting firm, as stated in their report included therein, which
is incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon the
report of such firm given on the authority of such firm as experts in accounting and auditing.
The information included herein
regarding estimated quantities of proved reserves of the Company, the future net revenues from those reserves and their present value
as of December 31, 2021, are based on the proved reserves report prepared by Cawley, Gillespie & Associates, Inc. These estimates
are included herein in reliance upon the authority of such firm as an expert in these matters.
WHERE YOU CAN
FIND MORE INFORMATION
This prospectus forms a part of a registration
statement on Form S-3 we filed with the SEC. This prospectus does not contain all of the information found in the registration statement.
For further information regarding us and our securities, you may desire to review the full registration statement, including its exhibits
and schedules, filed under the Securities Act, as well as our proxy statement, annual, quarterly
and other reports and other information we file with the SEC. The SEC maintains a website on the Internet at www.sec.gov
that contains reports, proxy and information statements, and other information regarding companies that file electronically with the SEC.
We maintain a website on the Internet at www.empirepetroleumcorp.com. Our registration statement, of which this prospectus constitutes
a part, can be downloaded from the SEC’s website or from our website at www.empirepetroleumcorp.com. Information on the SEC
website, our website or any other website is not incorporated by reference in this prospectus and does not constitute part of this prospectus.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, which have previously
been filed by us with the SEC under the Exchange Act, are incorporated herein by reference:
| • | our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 31, 2022 (File No. 001-16653); |
| • | our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022, filed with the SEC on
May 16, 2022 (File No. 001-16653); |
| • | our Current Reports on Form 8-K, filed with the SEC on January 6, 2022, March 1, 2022, March 9, 2022,
May 5, 2022 and May 17, 2022 (excluding any information furnished pursuant to Item 2.02 or Item 7.01 of any such Current Report on Form
8-K and any corresponding information furnished under Item 9.01 or included as an exhibit) (File No. 001-16653); and |
| • | the description of our common stock set forth in our registration statement on Form 8-A, filed with
the SEC on March 3, 2022 (File No. 001-16653), including any and all subsequent amendments and reports filed for the purpose of updating
that description. |
All documents filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information furnished pursuant to Item 2.02 or Item 7.01 on any Current Report
on Form 8-K and any corresponding information furnished under Item 9.01 or included as an exhibit) after the date of this prospectus supplement
until the termination of the offering under this prospectus supplement shall be deemed to be incorporated in this prospectus supplement
by reference and to be a part hereof from the date of filing of such documents. Any statement contained herein, or in a document incorporated
or deemed to be incorporated by reference herein, shall be deemed to be modified or superseded for purposes of this prospectus supplement
to the extent that a statement contained herein or in any subsequently filed document which also is or is deemed to be incorporated by
reference herein, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so
modified or superseded, to constitute a part of this prospectus supplement.
This prospectus supplement may contain
information that updates, modifies or is contrary to information in one or more of the documents incorporated by reference in this
prospectus supplement. You should rely only on the information incorporated by reference or provided in this prospectus supplement.
We have not authorized anyone else to provide you with different information. You should not assume that the information in this
prospectus supplement is accurate as of any date other than the date of this prospectus supplement or the date of the documents
incorporated by reference in this prospectus supplement.
You may request a free copy of these filings,
other than any exhibits, unless the exhibits are specifically incorporated by reference into this prospectus, by writing or telephoning
us at the following address:
Empire Petroleum Corporation
Attention: President
2200 S. Utica Place, Suite 150
Tulsa, Oklahoma 74114
S-10
PROSPECTUS
EMPIRE
PETROLEUM CORPORATION
$350,000,000
Common Stock
Warrants
Subscription Rights
Purchase Contracts
Units
We may offer from time to time
shares of our common stock, warrants, subscription rights, purchase contracts and units that include any of these securities.
The aggregate initial offering
amount of the securities that we offer will not exceed $350,000,000. We will offer the securities in amounts, at prices and on terms to
be determined at the time of the offering.
Our common stock is quoted on
the OTCQB under the symbol “EMPR.” The last reported sale price of our common stock on October 25, 2021 was $2.43 per share.
We may offer and sell these securities
to or through one or more underwriters, dealers and agents, or directly to purchasers, on a continuous or delayed basis.
We will provide the specific terms
of the offering in supplements to this prospectus. You should read this prospectus and any supplement carefully before you invest. This
prospectus may not be used to offer and sell our securities unless accompanied by a prospectus supplement.
Investing in our securities
involves significant risks that are described in the “Risk Factors” section beginning on page 4 of this prospectus.
Neither the Securities and
Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is November
5, 2021.
Table of Contents
i
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the “Commission”)
utilizing a “shelf” registration process. Under this shelf registration process, we may sell any combination of the securities
described in this prospectus in one or more offerings up to a total dollar amount of $350,000,000. This prospectus provides you with
a general description of the securities we may offer. Each time we sell securities, we will provide a prospectus supplement that will
contain specific information about the terms of the offering and the offered securities. This prospectus, together with applicable prospectus
supplements, any information incorporated by reference, and any related free writing prospectuses we file with the Commission, includes
all material information relating to these offerings and securities. We may also add, update or change in any such applicable prospectus
supplement any of the information contained in this prospectus or in the documents that we have incorporated by reference into this prospectus,
including without limitation, a discussion of any risk factors or other special considerations that apply to these offerings or securities
or the specific plan of distribution. If there is any inconsistency between the information in this prospectus and any applicable prospectus
supplement or information incorporated by reference having a later date, you should rely on the information in such applicable prospectus
supplement or incorporated information having a later date. We urge you to read carefully this prospectus, any applicable prospectus
supplement and any related free writing prospectus, together with the information incorporated herein by reference as described under
the heading “Incorporation of Certain Documents By Reference,” and the additional information described under the heading
“Where You Can Find More Information,” before buying any of the securities being offered.
You
should rely only on the information we have provided or incorporated by reference in this prospectus, any applicable prospectus supplement
and any related free writing prospectus. We have not authorized anyone to provide you with different information. No dealer, salesperson
or other person is authorized to give any information or to represent anything not contained in this prospectus, any applicable prospectus
supplement or any related free writing prospectus.
Neither
the delivery of this prospectus nor any sale made under it implies that there has been no change in our affairs or that the information
in this prospectus is correct as of any date after the date of this prospectus. You should assume that the information in this prospectus,
any applicable prospectus supplement or any related free writing prospectus is accurate only as of the date on the front of the document
and that any information we have incorporated by reference is accurate only as of the date of the document incorporated by reference,
regardless of the time of delivery of this prospectus, any applicable prospectus supplement or any related free writing prospectus, or
any sale of a security.
The
registration statement containing this prospectus, including exhibits to the registration statement, provides additional information
about us and the securities offered under this prospectus and any prospectus supplement. We have filed and plan to continue to file other
documents with the Commission that contain information about us and our business. Also, we will file legal documents that control the
terms of the securities offered by this prospectus as exhibits to the reports that we file with the Commission. The registration statement
and other reports can be read at the Commission website or at the Commission offices mentioned under the heading “Where You Can
Find More Information.”
This
prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the
actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some
of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to the registration
statement of which this prospectus is a part, and you may obtain copies of those documents as described below under “Where You
Can Find More Information.”
EMPIRE
PETROLEUM CORPORATION
We
are an oil and natural gas producer with producing properties located in New Mexico, Louisiana, Texas, North Dakota, and Montana. As
of the date of this prospectus, the properties produce approximately 50,000 net barrels of oil equivalent (Boe) per month.
As
used in this prospectus, the terms “we,” “us” and “our” mean Empire Petroleum Corporation, a Delaware
corporation, and its subsidiaries and predecessors, unless the context indicates otherwise. Our principal executive office is located
at 2200 S. Utica Place, Suite 150, Tulsa, Oklahoma 74114, and our phone number is (539) 444-8002.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The
information discussed in this prospectus, our filings with the Commission and our public releases include “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Private Securities Litigation Reform Act of 1995 (the
“PSLRA”), or in releases made by the Commission. Such forward-looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or achievements of us and our subsidiaries to differ materially
from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements that are not
historical fact are forward-looking statements. Forward-looking statements can be identified by, among other things, the use of forward-looking
language, such as the words “plan,” “believe,” “expect,” “anticipate,” “intend,”
“estimate,” “project,” “may,” “will,” “would,” “could,” “should,”
“seeks,” or “scheduled to,” or other similar words, or the negative of these terms or other variations of these
terms or comparable language, or by discussion of strategy or intentions. These cautionary statements are being made pursuant to the
Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the “safe harbor” provisions
of such laws.
The
forward-looking statements contained in or incorporated by reference into this prospectus are largely based on our expectations, which
reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently
known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain
and involve a number of risks and uncertainties that are beyond our control, including:
| · | our
limited financial resources and need for additional capital; |
| · | the
continued impact of the COVID-19 pandemic on our business and results of operation; |
| · | the
costs expected to be incurred in exploration and development; |
| · | our
substantial indebtedness; |
| · | unforeseen
engineering, mechanical or technological difficulties in drilling wells; |
| · | uncertainty
of exploration results; |
| · | the
geographic concentration of our properties; |
| · | competition
from other natural resource companies; |
| · | the
fluctuations of prices for oil and gas; |
| · | our
ability to use our net operating loss carryforwards; |
| · | our
estimate of reserves; |
| · | the
sufficiency of our insurance coverage; |
| · | the
effects of governmental and environmental regulation; |
| · | the
effectiveness of our disclosure controls and procedures; and |
| · | general
economic conditions. |
Many
of these factors are beyond our ability to control or predict. These factors are not intended to represent a complete list of the general
or specific factors that may affect us.
In
addition, management’s assumptions about future events may prove to be inaccurate. All readers are cautioned that the forward-looking
statements contained in this prospectus and in the documents incorporated by reference into this prospectus are not guarantees of future
performance, and we cannot assure any reader that such statements will be realized or that the forward-looking events and circumstances
will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to factors described
in “Risk Factors” included elsewhere in this prospectus and in the documents that we include in or incorporate by reference
into this prospectus, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and our subsequent Commission
filings. All forward-looking statements speak only as of the date they are made. We do not intend to update or revise any forward-looking
statements as a result of new information, future events or otherwise, except as required by law. These cautionary statements qualify
all forward-looking statements attributable to us or persons acting on our behalf.
WHERE
YOU CAN FIND MORE INFORMATION
We
are subject to the informational requirements of the Exchange Act and file reports, proxy statements and other information with the Commission
as required by the Exchange Act. These reports, proxy statements and other information can be inspected and copied at the Commission’s
Public Reference room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public
Reference Room by calling the Commission at 1-800-SEC-0330. In addition, the Commission maintains an Internet site at www.sec.gov
that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the
Commission. We maintain a website at www.empirepetroleumcorp.com. Information on our website or any other website is not incorporated
by reference into this prospectus and does not constitute part of this prospectus.
We
have filed a registration statement with the Commission on Form S-3 (including any amendments thereto, known as the registration statement)
under the Securities Act with respect to the securities offered hereby. This prospectus does not contain all of the information set forth
in the registration statement and the exhibits and schedules thereto. You may refer to the registration statement and the exhibits and
schedules thereto for more information about the offered securities and us. Statements made in this prospectus regarding the contents
of any contract or document filed as an exhibit to the registration statement are not necessarily complete and, in each instance, reference
is hereby made to the copy of such contract or document so filed. Each such statement is qualified in its entirety by such reference.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The
following documents, which have previously been filed by us with the Commission under the Exchange Act, are incorporated herein by reference:
| |
● |
Our Annual
Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Commission on March 31, 2021 (File No. 001-16653); |
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|
|
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● |
Our Quarterly
Report on Form 10-Q for the fiscal quarter ended March 31, 2021 and June 30, 2021, filed with the Commission on May 17, 2021 and
August 23, 2021 (File No. 001-16653); |
| |
|
|
| |
● |
Our Statements
of Revenues and Direct Operating Expenses of the Oil and Natural Gas Properties Acquired on May 14, 2021 from XTO Holdings, LLC for
the years ended December 31, 2020 and 2019, included in the Current Reports on Form 8-K filed with the Commission on July 30, 2021
and August 23, 2021 (File No. 001-16653); and |
| |
|
|
| |
● |
Our Current
Reports on Form 8-K, filed with the Commission on January 6, 2021, March 15, 2021, April 1, 2021, April 27, 2021, April 29, 2021,
May 17, 2021, May 18, 2021, May 20, 2021, July 30, 2021, August 4, 2021, August 23, 2021, August 24, 2021, October 5, 2021, October 21, 2021 and October 22, 2021 (File No. 001-16653) (excluding any information furnished pursuant to Item 2.02 or Item 7.01 of any
such Current Report on Form 8-K). |
All
documents filed by us pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information furnished pursuant
to Item 2.02 or Item 7.01 on any current report on Form 8-K and any corresponding information furnished under Item 9.01 or included as
an exhibit) after the date of the initial registration statement and prior to the effectiveness of the registration statement and after
the date of this prospectus and prior to the termination of each offering under this prospectus shall be deemed to be incorporated in
this prospectus by reference and to be a part hereof from the date of filing of such documents. Any statement contained herein, or in
a document incorporated or deemed to be incorporated by reference herein, shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained herein or in any subsequently filed document which also is or is deemed to be
incorporated by reference herein, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this prospectus.
This
prospectus incorporates documents by reference that are not delivered with the prospectus. Copies of these documents, other than the
exhibits to the documents (unless such exhibits are specifically incorporated by reference in such documents), are available upon written
or oral request, at no charge, from us. Requests for such copies should be directed to Empire Petroleum Corporation, 2200 S. Utica Place,
Suite 150, Tulsa, Oklahoma 74114, Attention: Michael Morrisett, telephone number: (539) 444-8002.
RISK
FACTORS
An
investment in our securities involves a high degree of risk. You should carefully consider the risk factors and all of the other information
included in, or incorporated by reference into, this prospectus, including those risk factors included in our Annual Report on Form 10-K
for the year ended December 31, 2020, and our subsequent Commission filings, in evaluating an investment in our securities. If any of
these risks were to occur, our business, financial condition or results of operations could be adversely affected. In that case, the
trading price of our securities could decline and you could lose all or part of your investment. When we offer and sell any securities
pursuant to a prospectus supplement, we may include additional risk factors relevant to such securities in the prospectus supplement.
USE OF PROCEEDS
Unless
we inform you otherwise in the prospectus supplement or any pricing supplement, we will use the net proceeds from the sale of the offered
securities for general corporate purposes. These purposes may include capital expenditures, repayment or refinancing of indebtedness,
acquisitions and repurchases and redemptions of securities. Pending any specific application, we may initially invest funds in short-term
marketable securities or apply them to the reduction of indebtedness.
DILUTION
Our
net tangible book value at June 30, 2021 was $(0.09) per share of common stock. Net tangible book value per share of common stock is
determined by dividing our tangible net worth, which is tangible assets less liabilities, by the total number of shares of our common
stock outstanding. If we offer shares of our common stock, purchasers of our common stock in that offering may experience immediate dilution
in net tangible book value per share. The prospectus supplement relating to an offering of shares of our common stock will set forth
the information regarding any dilutive effect of that offering.
DESCRIPTION
OF COMMON STOCK
The
total number of shares of all classes of stock that we have authority to issue is 150,000,000 shares of common stock, par value $.001
per share. We had 74,323,764 shares of common stock, outstanding as of October 25, 2021.
In
the discussion that follows, we have summarized selected provisions of our articles of incorporation and our bylaws relating to our capital
stock. You should read our articles of incorporation and bylaws as currently in effect for more details regarding the provisions we describe
below and for other provisions that may be important to you. We have filed copies of those documents with the SEC, and they are incorporated
by reference as exhibits to the registration statement. Please read “Where You Can Find More Information.”
Common
Stock
Our
outstanding shares of common stock are fully paid and non-assessable. Holders of common stock have no preemptive rights and have no rights
to convert their common stock into any other securities.
Voting
Rights
The
holders of shares of common stock are entitled to one vote per share on all matters to be voted on by stockholders. Holders of common
stock do not have cumulative voting rights with respect to the election of directors or as to any other matter to be voted upon by the
holders of common stock. Our Bylaws may be amended by our board of directors without the vote or consent of the holders of our common
stock or by vote or consent of the holders of our common stock.
Dividend
and Liquidation Rights
Holders
of common stock are entitled to receive ratably such dividends as may be declared by our board of directors in its discretion from funds
legally available. In the event of our liquidation, dissolution, or winding up, holders of common stock are entitled to share ratably
in all assets remaining after payment of liabilities. Our credit agreement limits the amount of cash dividends that we can pay on our
common stock.
Diminution
of Rights of Common Stock
Our
Certificate of Incorporation does not currently authorize the issuance of preferred stock. The voting, dividend, and liquidation rights
of the holders of our common stock could be materially adversely diminished by the terms of any series of preferred stock that may be
authorized for issue in the future pursuant to an amendment of the Certificate of Incorporation.
Anti-Takeover
Provisions
Provisions
of the Delaware General Corporation Law (“DGCL”) may delay, defer, or prevent a change of control of us. The DGCL provides
certain restrictions on business combinations involving interested parties. Under the DGCL, a corporation may not engage in a business
combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or, among other
things, the board of directors has approved the transaction. The board of directors could rely on this provision of the DGCL to prevent
or delay an acquisition of us.
Listing
Our
common stock is listed for quotation on the OTCQB under the symbol “EMPR.”
Transfer Agent and Registrar
Securities
Transfer Corporation is transfer agent and registrar for our common stock.
DESCRIPTION
OF WARRANTS
We
may issue warrants to purchase common stock, purchase contracts or units that are registered pursuant to the registration statement to
which this prospectus relates. We may issue warrants independently or together with other securities that are registered pursuant to
the registration statement to which this prospectus relates. Warrants sold with other securities may be attached to or separate from
the other securities. We will issue each series of warrants under a separate warrant agreement between us and a warrant agent that we
will name in the prospectus supplement. We will describe additional terms of the warrants and the applicable warrant agreements in the
applicable prospectus supplement.
General
If
warrants are offered, the prospectus supplement relating to a series of warrants will include the specific terms of the warrants, including:
| |
● |
the offering price; |
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● |
the title of the warrants; |
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● |
the aggregate number of warrants offered;
|
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● |
the dates or periods during which the
warrants can be exercised; |
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|
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● |
whether the warrants will be issued
in individual certificates to holders or in the form of global securities held by a depositary on behalf of holders; |
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● |
the designation and terms of any securities
with which the warrants are issued; |
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● |
if the warrants are issued as a unit
with another security, the date, if any, on and after which the warrants and the other security will be separately transferable;
|
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● |
if the exercise price is not payable
in U.S. dollars, the foreign currency, currency unit or composite currency in which the exercise price is denominated; |
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● |
any terms, procedures and limitations
relating to the transferability, exchange or exercise of the warrants; |
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● |
any special tax implications of the
warrants or their exercise; |
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● |
any anti-dilution provisions of the
warrants; |
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● |
any redemption or call provisions applicable
to the warrants; and |
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● |
any other terms of the warrants. |
Transfers and Exchanges
A
holder will be able to exchange warrant certificates for new warrant certificates of different denominations, or to transfer warrants,
at the corporate trust office of the warrant agent or any other office indicated in the prospectus supplement. Prior to exercise, holders
of warrants will have none of the rights of holders of the underlying securities.
Exercise
Holders
will be able to exercise warrants up to 5:00 P.M. New York City time on the date set forth in the prospectus supplement as the expiration
date.
After
this time, unless we have extended the expiration date, the unexercised warrants will be void.
Subject
to any restrictions and additional requirements that may be set forth in a prospectus supplement, holders of warrants may exercise them
by delivering to the warrant agent at its corporate trust office the following:
| |
● |
warrant certificates properly completed;
and |
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● |
payment of the exercise price. |
As
soon as practicable after the delivery, we will issue and deliver to the indicated holder the securities purchasable upon exercise. If
a holder does not exercise all the warrants represented by a particular certificate, we will also issue a new certificate for the remaining
number of warrants.
No Rights of Security
Holder Prior to Exercise
Prior
to the exercise of their warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon
the exercise of the warrants, and will not be entitled to purchase equity securities, the right to vote or to receive dividend payments
or similar distributions on the securities purchasable upon exercise.
Enforceability of Rights
by Holders of Warrants
Each
warrant agent will act solely as our agent under the relevant warrant agreement and will not assume any obligation or relationship of
agency or trust for any warrant holder. A single bank or trust company may act as warrant agent for more than one issue of warrants.
A warrant agent will have no duty or responsibility if we default in performing our obligations under the relevant warrant agreement
or warrant, including any duty or responsibility to initiate any legal proceedings or to make any demand upon us.
Title
We
and the warrant agents and any of our respective agents may treat the registered holder of any warrant certificate as the absolute owner
of the warrants evidenced by that certificate for any purpose and as the person entitled to exercise the rights attaching to the warrants
so requested, despite any notice to the contrary.
DESCRIPTION
OF SUBSCRIPTION RIGHTS
We
may issue subscription rights to purchase common stock, warrants, other securities described in this prospectus or any combination thereof.
These subscription rights may be issued independently or together with any other security offered by us and may or may not be transferable
by the security holder receiving the subscription rights in such offering. In connection with any offering of subscription rights, we
may enter into a standby arrangement with one or more underwriters or other investors pursuant to which the underwriters or other investors
may be required to purchase any securities remaining unsubscribed for after such offering.
To
the extent appropriate, the applicable prospectus supplement will describe the specific terms of the subscription rights to purchase
shares of our securities offered thereby, including the following:
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● |
the date of determining the security
holders entitled to the subscription rights distribution; |
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● |
the price, if any, for the subscription
rights; |
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● |
the exercise price payable for the
common stock, depositary shares or other securities upon the exercise of the subscription right; |
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● |
the number of subscription rights issued
to each security holder; |
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● |
the amount of common stock, depositary
shares or other securities that may be purchased per each subscription right; |
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● |
any provisions for adjustment of the
amount of securities receivable upon exercise of the subscription rights or of the exercise price of the subscription rights; |
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● |
the extent to which the subscription
rights are transferable; |
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● |
the date on which the right to exercise
the subscription rights shall commence, and the date on which the subscription rights shall expire; |
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● |
the extent to which the subscription
rights may include an over-subscription privilege with respect to unsubscribed securities; |
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● |
the material terms of any standby underwriting
or purchase arrangement entered into by us in connection with the offering of subscription rights; |
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● |
any applicable federal income tax considerations;
and |
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● |
any other terms of the subscription
rights, including the terms, procedures and limitations relating to the transferability, exchange and exercise of the subscription
rights. |
DESCRIPTION
OF PURCHASE CONTRACTS
We
may issue purchase contracts obligating holders to purchase from us, and us to sell to the holders, a specified number, or amount, of
securities at a future date or dates. The purchase contracts may be issued separately or as part of units consisting of a purchase contract
and an underlying security covered by this prospectus, U.S. Treasury security or other U.S. government or agency obligation. The holder
of the unit may be required to pledge the security, U.S. Treasury security or other U.S. government or agency obligation to secure its
obligations under the purchase contract.
If
purchase contracts are offered, the prospectus supplement will specify the material terms of the purchase contracts, the units and any
applicable pledge or depository arrangements, including one or more of the following:
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the stated amount that a holder will
be obligated to pay under the purchase contract in order to purchase the underlying security; |
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the settlement date or dates on which
the holder will be obligated to purchase the underlying security and whether the occurrence of any events may cause the settlement
date to occur on an earlier date and the terms on which any early settlement would occur; |
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the events, if any, that will cause
our obligations and the obligations of the holder under the purchase contract to terminate; |
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the settlement rate, which is a number
that, when multiplied by the stated amount of a purchase contract, determines the number, or amount, of securities that we will be
obligated to sell and a holder will be obligated to purchase under that purchase contract upon payment of the stated amount of that
purchase contract; |
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whether the purchase contracts will
be issued separately or as part of units consisting of a purchase contract and an underlying security with an aggregate principal
amount or liquidation amount equal to the stated amount; |
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the type of security, if any, that
is pledged by the holder to secure its obligations under a purchase contract; |
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the terms of the pledge arrangement
relating to the security, including the terms on which distributions or payments of interest and principal on the security will be
retained by a collateral agent, delivered to us or be distributed to the holder; and |
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the amount of the contract fee, if
any, that may be payable by us to the holder or by the holder to us, the date or dates on which the contract fee will be payable
and the extent to which we or the holder, as applicable, may defer payment of the contract fee on those payment dates. |
DESCRIPTION
OF UNITS
As
specified in the applicable prospectus supplement, we may issue units consisting of one or more shares of common stock, warrants, subscription
rights, purchase contracts, or any combination of such securities. The applicable prospectus supplement will describe:
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the securities comprising the units,
including whether and under what circumstances the securities comprising the units may be separately traded; |
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the terms and conditions applicable
to the units, including a description of the terms of any applicable unit agreement governing the units; and |
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a description of the provisions for
the payment, settlement, transfer or exchange of the units. |
GLOBAL
SECURITIES
We
may issue warrants, purchase contracts and units of any series in the form of one or more fully registered global securities that will
be deposited with a depositary or with a nominee for a depositary and registered in the name of the depositary or its nominee. In that
case, one or more global securities will be issued in a denomination or aggregate denominations equal to the portion of the aggregate
principal or face amount of outstanding registered securities of the series to be represented by such global securities. Unless and until
the depositary exchanges a global security in whole for securities in definitive registered form, the global security may not be transferred
except as a whole by the depositary to a nominee of the depositary or by a nominee of the depositary to the depositary or another nominee
of the depositary or by the depositary or any of its nominees to a successor of the depositary or a nominee of such successor.
The
specific terms of the depositary arrangement with respect to any portion of a series of securities to be represented by a global security
will be described in the prospectus supplement relating to such series. We anticipate that the following provisions will apply to all
depositary arrangements.
Ownership
of beneficial interests in a global security will be limited to persons that have accounts with the depositary for such global security
known as “participants” or persons that may hold interests through such participants.
Upon
the issuance of a global security, the depositary for such global security will credit, on its book-entry registration and transfer system,
the participants’ accounts with the respective principal or face amounts of the securities represented by the global security beneficially
owned by the participants. The accounts to be credited shall be designated by any dealers, underwriters or agents participating in the
distribution of such securities.
Ownership
of beneficial interests in such global security will be shown on, and the transfer of such ownership interests will be effected only
through, records maintained by the depositary for such global security (with respect to interests of participants) and on the records
of participants (with respect to interests of persons holding through participants). The laws of some states may require that certain
purchasers of securities take physical delivery of such securities in definitive form. Such limits and such laws may impair the ability
to own, transfer or pledge beneficial interests in global securities.
So
long as the depositary for a global security, or its nominee, is the registered owner of such global security, such depositary or such
nominee, as the case may be, will be considered the sole owner or holder of the securities represented by such global security for all
purposes under the applicable warrant agreement, purchase contract or unit agreement. Except as set forth below, owners of beneficial
interests in a global security will not be entitled to have the securities represented by such global security registered in their names,
will not receive or be entitled to receive physical delivery of such securities in definitive form and will not be considered the owners
or holders thereof under the applicable warrant agreement, purchase contract or unit agreement. Accordingly, each person owning a beneficial
interest in a global security must rely on the procedures of the depositary for the global security and, if such person is not a participant,
on the procedures of the participant through which such person owns its interest, to exercise any rights of a holder under the applicable
warrant agreement, purchase contract or unit agreement. We understand that under existing industry practices, if we request any action
of holders or if an owner of a beneficial interest in a global security desires to give or take any action which a holder is entitled
to give or take under the applicable warrant agreement, purchase contract or unit agreement, the depositary for such global security
would authorize the participants holding the relevant beneficial interests to give or take such action, and such participants would authorize
beneficial owners owning through such participants to give or take such action or would otherwise act upon the instructions of beneficial
owners holding through them.
Any
payments to holders with respect to warrants, purchase contracts or units represented by a global security registered in the name of
a depositary or its nominee will be made to such depositary or its nominee, as the case may be, as the registered owner of such global
security. None of us, the warrant agents, the unit agents or any of our other agents, agent of the warrant agents or unit agents will
have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests
in such global security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
Any
payments to holders with respect to warrants, purchase contracts or units represented by a global security registered in the name of
a depositary or its nominee will be made to such depositary or its nominee, as the case may be, as the registered owner of such global
security. None of us, the warrant agents, the unit agents or any of our other agents, agent of the warrant agents or unit agents will
have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests
in such global security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
We
expect that the depositary for any securities represented by a global security, or its nominee, upon receipt of any payment of principal,
premium, interest or other distribution of underlying securities or commodities to holders in respect of such global security, will immediately
credit participants’ accounts in amounts proportionate to their respective beneficial interests in such global security as shown
on the records of such depositary or its nominee. We also expect that payments by participants to owners of beneficial interests in such
global security held through such participants will be governed by standing customer instructions and customary practices, as is now
the case with the securities held for the accounts of customers in bearer form or registered in “street name,” and will be
the responsibility of such participants.
If
the depositary for any securities represented by a global security is at any time unwilling or unable to continue as depositary or ceases
to be a clearing agency registered under the Exchange Act, and we do not appoint a successor depositary registered as a clearing agency
under the Exchange Act within 90 days, we will issue such securities in definitive form in exchange for such global security. In addition,
we may at any time and in our sole discretion determine not to have any of the securities of a series represented by one or more global
securities and, in such event, will issue securities of such series in definitive form in exchange for all of the global security or
securities representing such securities. Any securities issued in definitive form in exchange for a global security will be registered
in such name or names as the depositary shall instruct the relevant warrant agent or other relevant agent of ours. We expect that such
instructions will be based upon directions received by the depositary from participants with respect to ownership of beneficial interests
in such global security.
PLAN
OF DISTRIBUTION
We
may sell our securities from time to time through underwriters, dealers or agents or directly to purchasers, in one or more transactions
at a fixed price or prices, which may be changed, or at market prices prevailing at the time of sale, at prices related to such prevailing
market prices or at negotiated prices. We may also sell our securities upon the exercise of subscription rights that may be distributed
to security holders. We may use these methods in any combination.
We
will describe the terms of the offering of the securities in a prospectus supplement, information incorporated by reference or any related
free writing prospectus, including:
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the name or names of any underwriters, if any; |
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the purchase price of the securities and the proceeds
we will receive from the sale; |
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any underwriting discounts and other items constituting
underwriters’ compensation; |
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any initial public offering price; |
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any discounts or concessions allowed or reallowed or
paid to dealers; and |
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any securities exchange or market on which the securities
may be listed. |
Only
underwriters we name in the prospectus supplement, information incorporated by reference or related free writing prospectus are underwriters
of the securities offered thereby.
The
distribution of securities may be effected, from time to time, in one or more transactions, including:
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block transactions (which may involve crosses) and transactions
on the OTCQB or any other organized market where the securities may be traded; |
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purchases by a broker-dealer as principal and resale
by the broker-dealer for its own account pursuant to a prospectus supplement; |
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ordinary brokerage transactions and transactions in which
a broker-dealer solicits purchasers; |
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sales “at the market” to or through a market
maker or into an existing trading market, on an exchange or otherwise; and |
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sales in other ways not involving market makers or established
trading markets, including direct sales to purchasers. |
By Underwriters
We
may use an underwriter or underwriters in the offer or sale of our securities.
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If we use an underwriter or underwriters, the offered
securities will be acquired by the underwriters for their own account. |
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We will include the names of the specific managing underwriter
or underwriters, as well as any other underwriters, and the terms of the transactions, including the compensation the underwriters
and dealers will receive, in the prospectus supplement. |
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The underwriters will use this prospectus and the prospectus
supplement to sell our securities. |
We
may also sell securities pursuant to one or more standby agreements with one or more underwriters in connection with the call, redemption
or exchange of a specified class or series of any of our outstanding securities. In a standby agreement, the underwriter or underwriters
would agree either:
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to purchase from us up to the number of shares of common
stock that would be issuable upon conversion or exchange of all the shares of the class or series of our securities at an agreed
price per share of common stock; or |
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to purchase from us up to a specified dollar amount of
offered securities at an agreed price per offered security, which price may be fixed or may be established by formula or other method
and which may or may not relate to market prices of our common stock or any other outstanding security. |
The
underwriter or underwriters would also agree, if applicable, to convert or exchange any securities of the class or series held or purchased
by the underwriter or underwriters into or for our common stock or other security.
The
underwriter or underwriters may assist in the solicitation of conversions or exchanges by holders of the class or series of securities.
By Dealers
We
may use a dealer to sell our securities.
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If we use a dealer, we, as principal, will sell our securities
to the dealer. |
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The dealer will then resell our securities to the public
at varying prices that the dealer will determine at the time it sells our securities. |
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We will include the name of the dealer and the terms
of our transactions with the dealer in the prospectus supplement. |
If
we offer securities in a subscription rights offering to our existing security holders, we may enter into a standby underwriting agreement
with dealers, acting as standby underwriters. We may pay the standby underwriters a commitment fee for the securities they commit to
purchase on a standby basis. If we do not enter into a standby underwriting arrangement, we may retain a dealer-manager to manage a subscription
rights offering for us.
By Agents
We
may designate agents to solicit offers to purchase our securities.
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We will name any agent involved in offering or selling
our securities and any commissions that we will pay to the agent in the prospectus supplement. |
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Unless we indicate otherwise in the prospectus supplement,
our agents will act on a best efforts basis for the period of their appointment. |
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Our agents may be deemed to be underwriters under the
Securities Act of any of our securities that they offer or sell. |
By Delayed Delivery Contracts
We
may authorize our agents and underwriters to solicit offers by certain institutions to purchase our securities at the public offering
price under delayed delivery contracts.
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If we use delayed delivery contracts, we will disclose
that we are using them in the prospectus supplement and will tell you when we will demand payment and delivery of the securities
under the delayed delivery contracts. |
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These delayed delivery contracts will be subject only
to the conditions that we set forth in the prospectus supplement. |
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We will indicate in the prospectus supplement the commission
that underwriters and agents soliciting purchases of our securities under delayed delivery contracts will be entitled to receive. |
Direct Sales
We
may directly solicit offers to purchase our securities, and we may directly sell our securities to institutional or other investors,
including our affiliates. We will describe the terms of our direct sales in the prospectus supplement. We may also sell our securities
upon the exercise of rights which we may issue.
General Information
Underwriters,
dealers and agents that participate in the distribution of our securities may be underwriters as defined in the Securities Act, and any
discounts or commissions they receive and any profit they make on the resale of the offered securities may be treated as underwriting
discounts and commissions under the Securities Act. Any underwriters or agents will be identified and their compensation described in
a prospectus supplement. We may indemnify agents, underwriters, and dealers against certain civil liabilities, including liabilities
under the Securities Act, or make contributions to payments they may be required to make relating to those liabilities. Our agents, underwriters,
and dealers, or their affiliates, may be customers of, engage in transactions with, or perform services for us in the ordinary course
of business.
Each
series of securities offered by this prospectus (other than common stock) may be a new issue of securities with no established trading
market. Any underwriters to whom securities offered by this prospectus are sold by us for public offering and sale may make a market
in the securities offered by this prospectus, but the underwriters will not be obligated to do so and may discontinue any market making
at any time without notice. No assurance can be given as to the liquidity of the trading market for any securities offered by this prospectus.
Representatives
of the underwriters through whom our securities are sold for public offering and sale may engage in over-allotment, stabilizing transactions,
syndicate short covering transactions and penalty bids in accordance with Regulation M under the Exchange Act. Over-allotment involves
syndicate sales in excess of the offering size, which creates a syndicate short position. Stabilizing transactions permit bids to purchase
the offered securities so long as the stabilizing bids do not exceed a specified maximum.
Syndicate
covering transactions involve purchases of the offered securities in the open market after the distribution has been completed in order
to cover syndicate short positions. Penalty bids permit the representative of the underwriters to reclaim a selling concession from a
syndicate member when the offered securities originally sold by such syndicate member are purchased in a syndicate covering transaction
to cover syndicate short positions. Such stabilizing transactions, syndicate covering transactions and penalty bids may cause the price
of the offered securities to be higher than it would otherwise be in the absence of such transactions. These transactions may be effected
on a national securities exchange and, if commenced, may be discontinued at any time. Underwriters, dealers and agents may be customers
of, engage in transactions with or perform services for, us and our subsidiaries in the ordinary course of business.
Fees and Commissions
In
compliance with the guidelines of the Financial Industry Regulatory Authority, or FINRA, the aggregate maximum discount, commission or
agency fees or other items constituting underwriting compensation to be received by any FINRA member or independent broker-dealer will
not exceed 8% of any offering pursuant to this prospectus and any applicable prospectus supplement or other offering materials; however,
it is anticipated that the maximum commission or discount to be received in any particular offering of securities will be less than this
amount.
If
5% or more of the net proceeds of any offering of securities made under this prospectus will be received by a FINRA member participating
in the offering or affiliates or associated persons of such FINRA member, the offering will be conducted in accordance with FINRA Rule
5121.
LEGAL
MATTERS
Certain
legal matters in connection with the securities offered hereby will be passed on for us by Conner & Winters, LLP, Tulsa, Oklahoma,
and Porter Hedges LLP, Houston, Texas. Any underwriters will be advised about other issues relating to any offering by their own legal
counsel. As of the date of this prospectus, attorneys at Conner & Winters, LLP owned 340,842 shares of our common stock.
EXPERTS
Our
consolidated financial statements appearing in our Annual Report on Form 10-K for the year ended December 31, 2020, have been audited
by HoganTaylor LLP, an independent registered public accounting firm, as stated in their
report, which is incorporated herein by reference. Such consolidated financial statements have been so incorporated in reliance upon
the report of such firm given upon their authority as experts in accounting and auditing.
The
audited statements of revenues and operating expenses of the oil and natural gas properties acquired by Empire Petroleum Corporation
on May 14, 2021 from XTO Holdings, LLC for the years ended December 31, 2020 and 2019 included as Exhibit 99.1 to Form 8-K/A filed by
Empire Petroleum Corporation with the SEC on July 30, 2021 and August 23, 2021 and incorporated by reference in this prospectus in the
registration statement have been so incorporated by reference in reliance upon the report of Moss Adams LLP, independent public accountants,
upon the authority of said firm as experts in accounting and auditing.
$50,000,000
EMPIRE
PETROLEUM CORPORATION
Common Stock
__________________________
Prospectus Supplement
_____________________________
Raymond
James
June
23, 2022
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