Empire Energy (ASX:EEG) to acquire 100% interest in Beetaloo Basin property

Company News

by Adrian Tan

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.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.