Imperial Oil & Gas, a wholly owned subsidiary of Empire Energy (ASX:EEG)
, will acquire the interests of EMG Northern Territory Holdings in the Beetaloo and McArthur Basin tenements. Following the acquisition, Empire will own a 100 per cent interest in these properties.
Empire Energy is an oil and gas producer with operations in Australia and the US. The Beetaloo Basin is thought to contain recoverable shale dry gas volumes of over 100 trillions of cubic feet, and is potentially also liquids rich.
The key terms of the acquisition involve EMG obtaining: $1.061 million cash, to be funded from existing cash at bank; 29,696,970 ordinary Empire shares; and 1,696,970 options to acquire ordinary Empire shares at $0.70 per share which will expire three years after their issue date.
On completion of the transaction, EMG will own 5 per cent of the ordinary shares in Empire.
Shares in Empire Energy (ASX:EEG)
closed 3.1 per cent lower at $0.31.