Empire Petroleum Secures $4 Million Financing Deal
Empire Petroleum Corporation has entered into a new $4 million promissory note agreement with investor Phil E. Mulacek, according to the company’s latest SEC filing. The financing is aimed at supporting the company’s oil and gas drilling program and boosting working capital.
Details of the Promissory Note from Empire Petroleum
On September 24, 2025, Empire issued the note with an initial $2 million advanced by Mulacek. He can advance up to another $2 million between March 23, 2026, and September 23, 2026, provided no default occurs.
The note matures on September 23, 2027, and carries 5.5% annual interest. After maturity, unpaid balances will accrue interest at 9% per year. Scheduled interest payments are set for March 31, 2026; September 30, 2026; March 31, 2027; and the maturity date. Mulacek may also defer payments until maturity with written notice.
Conversion and Warrants
Mulacek has the option to convert principal into common stock at $4.27 per share, based on Empire’s five-day average trading price before issuance. If fully converted, the agreement would create 936,768 shares.
As part of the financing, Empire issued Mulacek a warrant to purchase 281,030 shares of common stock at $4.27 per share over three years. The warrant becomes exercisable once the NYSE American approves a supplemental listing application. If approval is delayed beyond 60 days, Mulacek may instead receive a $50,000 origination fee.
Use of Funds and Strategic Outlook
The company intends to use proceeds for drilling operations and working capital as it continues to expand its oil and gas development. With the financing, Empire is strengthening liquidity while providing Mulacek conversion and warrant options tied to the company’s performance.
Source: SEC filing