Empire Oil & Gas NL (ASX:EGO) and Origin Energy Limited (ASX:ORG) have inked a deal that will see Origin take a 40 per cent interest in two of Empire’s exploration blocks in Western Australia (WA).
Origin will pay for the stakes by funding 80 per cent of the 3D seismic survey costs over the prospect areas to enable more accurate evaluation.
Empire’s exploration partner, Norwest Energy NL (ASX:NWE), has decided to keep its 20 per cent working interest and will cover its 20 per cent share of the costs.
Empire has also announced it will raise $1.5 million by private placement, with the funds going to exploration in the Onshore Perth Basin in WA.
In the 2011 financial year Empire Oil & Gas booked a net loss of $2.5 million.
