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Empire raises $12M for NT energy projects

Energy
ASX:EEG      MCAP $169.1M
21 November 2019 12:15 (AEST)

Empire Energy has successfully raised $12 million through a placement to institutional and sophisticated investors.

The company will issue 30 million shares at a price of 40¢ per share. Morgans Corporate and Blue Ocean Equities acted as joint lead managers and joint book runners to the placement.

Funds from the placement will be used to progress exploration activities at the Beetaloo Basin. Exploration activities include the drilling of Empire’s first exploration well in EP187, targeting the Velkerri Shale.

The company said the 2D seismic data, which was recently acquired by Empire in EP187, is currently being processed and interpreted.

The results will determine the final locations for the exploration drilling program. Drilling is expected to commence in the 2020 dry season.

Managing Director Alex Underwood says Empire appreciates the support from existing and new shareholders.

“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,” Alex said.

“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,” he added.

Empire holds over 14.5 million acres of exploration tenements in the McArthur and Beetaloo Basins in the Northern Territory.

“Substantial appraisal activities by our neighbours in these basins are already underway and expected to continue throughout 2019 and 2020,” Alex told the market.

Empire is down 15.15 per cent on the market this morning and is trading at 42¢ apiece at 11:35 am AEDT.

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