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    Empire Energy raises A$27.5mn for Beetaloo work

Summary

Funds raised from the placement will be applied towards Beetaloo operations including drilling, stimulation and production testing of Carpentaria-3H.

by: Shardul Sharma

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Empire Energy raises A$27.5mn for Beetaloo work

Sydney-listed Empire Energy has received commitments to raise A$27.5mn ($19.8mn) via placement of new fully paid ordinary shares at A$0.22/share, it said on June 6.

Funds raised from the placement will be applied towards drilling, stimulation and production testing of Carpentaria-3H; western Beetaloo 2D seismic acquisition and civil works to prepare for future appraisal drilling; Northern Territory (NT) operations and office expenses until at least June 2023.

Subject to shareholder approval, Empire will issue one free attaching unlisted option for every two shares subscribed for by participants under the placement. The attaching options will be exercisable at A$0.35 and expire two years from the date of allotment of shares under the placement, Empire said.

“I recognise that the market conditions in which we have carried out this capital raising are challenging,” managing director Alex Underwood 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.”

Underwood said that Empire will seek a production license over portions of EP187, negotiate gas sale agreements with parties seeking additional gas supply in the NT gas market, and start planning for field development including surface facilities and pipeline connections. 

Empire's subsidiary Imperial Oil & Gas holds an acreage position in the NT McArthur-Beetaloo basins. The company in May 2022 received A$1.82mn in cash under the Australian government’s Beetaloo Cooperative Drilling Programme.