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Empire Energy Group (ASX:EEG) prepares for upcoming capital raise

The Market Online Deal Room
ASX:EEG      MCAP $159.5M
25 August 2020 10:00 (AEST)
Empire Energy Group (ASX:EEG) - CEO and Managing Director, Alex Underwood

Source: The Market Herald

Empire Energy Group (EEG) has requested an immediate trading halt pending an upcoming capital raise.

The company will remain in the halt until August 27 or when the announcement is released.

At the moment, it’s unclear how much money Empire wants to raise or what the funds will go towards.

In mid-August, Empire executed a rig services contract with oil services company Schlumberger to drill the Carpentaria-1 well.

The well will be drilled to a depth of around 2900 metres to allow Empire to fully evaluate the Velkerri Shale and Kyalla Shale.

The company expects to begin drilling in mid-September after it has completed the civil work program.

Empire last entered a trading halt in November 2019 regarding a $12 million placement.

To raise the funds, 30 million fully-paid ordinary shares were issued to institutional and sophisticated investors at 40 cents each.

Empire stated it would use the funds to progress exploration at the Beetaloo Basin in the Northern Territory and drill its first exploration well at the Velkerri Shale.

Shares in Empire last traded for 34 cents each on August 24.

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