Raises A$10m to Progress Beetaloo Basin Exploration
Sydney, Aug 26, 2020 AEST (ABN Newswire) - Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS) is pleased to announce that gross proceeds of A$10 million at A$0.30 per share has been raised through an unconditional single-tranche placement to institutional and sophisticated investors ("Placement").
Morgans Corporate Limited and Blue Ocean Equities Pty Limited were the Joint Lead Managers for the Placement.
Use of Funds
Funds raised under the Placement will be applied to Empire's Northern Territory exploration and development program including the imminent drilling of the Carpentaria-1 well.
Empire has started work in preparation for drilling the Carpentaria-1 well in EP187 including upgrading the access track, construction of the well pad and water bore drilling. These civil works are wholly being conducted by Northern Territory based companies and personnel. After completion of the civil works program, Empire expects to commence drilling the Carpentaria-1 well in mid-September 2020.
The balance of the funds raised under the Placement are intended to be used for a planned vertical fracture stimulation of the Velkerri Shale in the Carpentaria-1 well in Q2 2021 (subject to regulatory approvals which are ongoing) as well as working capital.
Comments from Managing Director Alex Underwood:
"We are pleased with the strong level of support for this capital raising from existing and new sophisticated and institutional shareholders. Empire is now well funded to progress its planned work programs across its extensive holdings in the Beetaloo and McArthur Basins.
The Northern Territory election result last weekend demonstrated that there is now bipartisan support for our industry in the Northern Territory Parliament. Empire is proud of its track record of responsible exploration, community engagement and capital investment which is supporting job creation and the broader Northern Territory economy.
Empire is playing a key role in unlocking the value of the Northern Territory's emerging Beetaloo and McArthur Basins through measured capital investment in our properties, which we believe can create substantial value for our shareholders, broad and sustainable economic benefits to the people of the Northern Territory, and energy security for Australia and the broader region."
Placement Structure and Pricing
In light of extremely strong demand for the Placement, the Company elected to accept oversubscriptions of A$3 million over the initial target of A$7 million. The additional A$3 million raised will ensure that the Company is fully funded for the vertical fracture stimulation and flow testing of Carpentaria-1, which is targeted to commence in Q2 2021, subject to regulatory approvals.
About Beetaloo Energy Australia Limited
Beetaloo Energy Australia Limited (ASX:BTL) (OTCMKTS:EEGUF) holds 28.9 million acres of highly prospective exploration tenements in the McArthur Basin and Beetaloo Sub-basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds around 80%, has enormous conventional and unconventional hydrocarbon potential. The Beetaloo Sub-basin, in which Beetaloo Energy holds a substantial position, has world-class hydrocarbon volumes in place and a ramp up in industry activity to appraise substantial discoveries already made by major Australian oil and gas operators is ongoing.
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