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Emperor Energy (ASX:EMP) raises $500K to strengthen balance sheet

Energy
ASX:EMP      MCAP $4.026M
27 May 2020 16:00 (AEST)
Emperor Energy (ASX:EMP) - Director, Carl Dumbrell

Source: The Market Herald

Emperor Energy (EMP) was up more than 24 per cent today after successfully raising $500,000.

Approximately 18 million shares were issued to professional and sophisticated investors at a price of 2.75 cents per share.

This price represents a 32 per cent discount to the 15-day volume weighted average price of 4.1 cents, and a slight discount to the last trading price of 2.9 cents.

The shares are expected to be issued on or around May 27, however, this is subject to receipt of funds.

Emperor Energy will use this money to strengthen its balance sheet and provide funding to advance its current exploration activities.

The company’s Offshore Gippsland Basin is located 200 kilometres east of Melbourne and exploration began in 1924.

Since then, over 400 exploration wells have been drilled and more than forty 3D seismic surveys have been completed.

Gas produced from this project has travelled as far as Sydney, Adelaide and Tasmania.

Emperor Energy’s second project, the Canning Basin, is located in Western Australia.

Despite the discovery of oil in penetrable dolomites (carbonate mineral comprising of calcium magnesium carbonate), production tests have confirmed the discovery is non-commercial.

As a result of this, the well has been cased (whereby the freshwater zones are isolated so they are not contaminated) and suspended at 1155 metres.

Emperor Energy is still up a strong 24.1 per cent and shares are trading for 3.6 cents each at 2:22 pm AEST.

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