Quarterly Activities Report
Sydney, April 30, 2024 AEST (ABN Newswire) - Empire Energy Group Ltd's (
ASX:EEG) (EEGUF:OTCMKTS) focus during the Quarter was progressing towards a final investment decision for the Carpentaria Pilot Project and planning for the $46.8 million capital raise described below.
Empire anticipates commencement of commercial production and gas sales in 2025.
Planning for the Carpentaria-5H ("C-5H") pilot development well, to be drilled in this work season subject to Northern Territory approvals, is well advanced. C-5H will be the first 3,000m horizontal section drilled by Empire and potentially the first in the Beetaloo.
After Quarter-end, Empire announced it had completed a $46.8 million capital raise corner-stoned by Bryan Sheffield and Liberty Energy Inc (NYSE:LBRT). Commenting on the capital raise, Chief Minister of the Northern Territory, Hon Eva Lawler said:
"Today's announcement by Empire is fantastic news for jobs, fantastic news for our economy and fantastic news for the future of the Territory"
Also after Quarter-end, Empire completed the sale of its USA assets for up to US$9.1 million in cash. Empire has fully repaid its US credit facility with part of the proceeds of the sale.
Cash at the end of the Quarter was $12.0 million. At the time of this announcement total available cash at bank is ~$49 million excluding Tranche 2 of the capital raise ($8.1 million before transaction costs) which is subject to shareholder approval.
Comments from Managing Director Alex Underwood:
"The Empire team had a busy and productive Quarter focused on bringing EP187 in the Beetaloo Basin into production next year.
We announced the sale of our US production assets after Quarter end for up to US$9.1 million. This has allowed us to extinguish all remaining US debt and free up capital to focus on our Beetaloo assets. The sale brings to a successful conclusion Empire's strategic shift to focus on unlocking the latent value in our Beetaloo / McArthur Basin asset portfolio.
Shortly after the sale of the US assets, Empire announced that it had completed a $46.8 million capital raise strongly supported by existing and new institutional and sophisticated investors.
Proceeds of the raise will be applied to the drilling, stimulation and flow testing of our first 3,000m horizontal section pilot development well, and to progress surface facility design and installation in EP187.
We are progressing gas sales negotiations, the majority of the required regulatory applications have been submitted, and long-lead items are now being procured.
One of our major shareholders recently expressed to me his view that "the play is about to take off". This is a view I share. With our capital position now the strongest it has ever been, the Empire team's focus in coming months will be to bring this goal to fruition.
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/P26U7X99
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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