Empire buys Pangaea's Beetaloo portfolio
Sydney-listed Empire Energy has signed a binding agreement to acquire a majority stake in fellow Australian explorer Pangaea Group’s Beetaloo sub-basin portfolio in Northern Territory, it said on April 14.
Empire will pay in cash and scrips for the 82.5% interest in Pangaea’s five tenements across the Beetaloo. It will pay A$5mn (US$3.8mn) in cash and 140mn shares upon completion of the transaction. Pangaea will also be issued 8mn unlisted Empire options with an exercise price of A$0.70/share.
Post the deal, Pangaea will own 30% of Empire, which intends to finance this purchase via a A$30mn capital raising. Following the acquisition, Empire will increase its best estimate prospective gas resource by 157% to 37 trillion ft3.
"This acquisition confirms Empire's position as the leading Beetaloo independent,” Empire’s managing director Alex Underwood said. “Empire now controls a globally significant gas resource which strengthens our early commercialisation strategies.”
Pangaea's tenements overlap the Amadeus gas pipeline, which in addition to the McArthur River Mine gas pipeline that crosses EP187, provides Empire with “multiple pathways to market utilising existing infrastructure”, Underwood said.
Completion of the transaction is subject to standard Northern Territory ministerial approvals and Empire shareholder approval. The remaining 17.5% of Pangaea is owned by the Houston-based Energy and Minerals Group.