- Empire Energy Group (EEG) taps investors for $30 million to fund upcoming work across its oil and gas operations
- The company intends to undertake a share purchase plan (SPP) and a placement, with all new shares to be issued at 22 cents each
- For every two new shares issued by Empire Energy under the placement and SPP, investors will receive attaching option exercisable at 35 cents and expiring in two years
- The funds will be directed to a number of activities at EEG’s Carpentaria-3H well, Western Beetaloo region, and other North Territory operations
- Shares in Empire Energy are trading 13.5 per cent lower at 22 cents each at 11:23 am AEST
Empire Energy Group (EEG) has tapped investors for $30 million to fund upcoming work across its oil and gas operations.
The company intends to undertake a share purchase plan (SPP) and a placement, with all new shares to be issued at 22 cents each.
This represents a 14.5-per-cent discount to EEG’s five-day volume-weighted average price prior to its trading halt.
For every two new shares issued under the placement and SPP, investors will receive one attaching option, exercisable at 35 cents and expiring in two years.
The company has already received binding commitments to raise $27.5 million through a placement and intends to raise an additional $2.5 million through the SPP.
Managing Director Alex Underwood said the extra funds will allow the company to accelerate growth.
“I recognise that the market conditions in which we have carried out this capital raising are challenging,” he said.
“However, the capital resources we now have provide the company with the opportunity to maintain strong momentum as we seek to become the first Beetaloo Basin player to commence commercial production.”
Empire Energy said the funds would be directed to a number of activities including drilling, stimulation and production testing at its Carpentaria-3H well, civil works and 2D seismic acquisition at Western Beetaloo, other North Territory operations, and head office requirements.
The capital raise is not subject to shareholder approval, and new shares will be issued under the company’s placement capacity.
However, EEG directors have committed to invest $520,000 under the placement, which will be subject to shareholder approval.
Shares were trading 13.5 per cent lower at 22 cents each at 11:23 am AEST.