Successful Completion of Capital Raising
Sydney, Nov 21, 2019 AEST (ABN Newswire) - Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS) is pleased to announce that gross proceeds of A$12.0 million were successfully raised through a placement to institutional and sophisticated investors.
Highlights
- Commitments received from existing and new institutional and sophisticated investors for a well-supported A$12 million Placement
- Funds will be used for exploration drilling in Empire's 100% owned EP187 tenement in the Beetaloo Basin, Northern Territory and for working capital
Placement
Empire will issue 30 million fully paid ordinary shares at an issue price of A$0.40 per share, representing approximately 12.9% of the shares on issue (on a pre-Placement basis), pursuant to its existing capacity under ASX listing Rule 7.1. All new shares, once issued, will rank pari passu with existing ordinary shares.
Morgans Corporate Limited and Blue Ocean Equities Limited acted as joint lead managers and joint book runners to the Placement.
Use of proceeds
Funds raised from the placement will be used to progress exploration activities in the Company's 100% owned EP187 tenement in the Beetaloo Basin including the drilling of the Company's first exploration well in EP187 targeting the Velkerri Shale.
2D seismic data recently acquired by Empire in EP187 is currently being processed and interpreted, the results of which will determine final locations for exploration drilling scheduled to commence in the 2020 dry season (subject to receipt of regulatory approvals and rig availability).
The balance of the funds raised will be utilised for working capital.
Alex Underwood, Managing Director of Empire, said:
"The Board and management team of Empire appreciate the support of existing and new shareholders in this capital raising. With our company's balance sheet now well capitalised, we are well positioned to continue building the value of our world-class shale properties in the Beetaloo and McArthur Basins through disciplined exploration investment.
Our preparation for the EP187 2020 drilling program targeting the liquids-rich gas window of the Velkerri Shale is progressing well and is now fully funded.
Substantial appraisal activities by our neighbours in these basins are already underway and expected to continue throughout 2019 and 2020.
Empire shareholders are well placed to benefit as these world class shale basins are explored, appraised and ultimately commercialised."
About Empire Energy Group Ltd
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) is a Sydney based Australian oil and gas company holding 100%-owned and operated assets with unconventional targets in the Northern Territory Beetaloo Sub-basin and central trough of the McArthur Basin.
Empire is an active Beetaloo Sub-basin operator, focused on maturing its assets to production. Following the successful appraisal drilling and flow testing of the Carpentaria-2H and 3H wells in Empire's EP187, Empire is targeting first gas flow in H1 2025 at its Carpentaria Pilot Project. The Pilot has a targeted sales gas rate of up to 25 TJ per day utilising the existing McArthur River Pipeline.
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