Empire Energy Group (ASX:EEG) - CEO and Managing Director, Alex Underwood
CEO and Managing Director, Alex Underwood
Source: The Pick Magazine [YouTube]
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  • Empire Energy (EEG) has successfully raised $30 million via a two-tranche placement
  • More than 99 million shares will be issued to institutional and sophisticated investors at 30 cents
  • This price represents a 13.6 per cent discount to Empire’s closing price of 35.5 cents on April 13
  • As previously announced, Empire will use the funds to acquire Pangaea NT’s 82.5 per cent interest in five Beetaloo Basin tenements
  • To acquire the tenements, Empire will pay $5 million in cash to Pangaea and issue 140 million ordinary shares upon completion
  • Shares in Empire are down 2.82 per cent on the market and trading at 34.5 cents

Empire Energy (EEG) has successfully raised $30 million via a two-tranche placement.

More than 99 million shares will now be issued to institutional and sophisticated investors at 30 cents, representing a 15.5 per cent discount to Empire’s closing price of 35.5 cents on April 13.

This price also represents a 13.6 per cent discount to the 30-day volume-weighted average price.

The shares will be issued in two phases with phase one issuing 39,318,829 shares.

Settlement is then expected to occur on April 22 and be allocated on April 23.

Phase two, which is subject to shareholder approval, will issue the remaining 60,681,171 shares.

The shares are expected to settle on June 1 and be allocated around June 2.

As previously announced, Empire will use the funds to acquire Pangaea NT’s 82.5 per cent interest in five Beetaloo Basin tenements.

To acquire the tenements, Empire will pay $5 million in cash to Pangaea and issue 140 million ordinary shares upon completion.

Furthermore, the company will issue eight million unlisted options, exercisable at 70 cents.

“The capital raise proceeds will complement Empire’s $11 million cash at bank which is earmarked for our Beetaloo growth activities,” Managing Director Alex Underwood said.

“Empire is now fully-funded to complete the acquisition of the Pangaea Beetaloo assets, the vertical fracture stimulation and flow testing of Carpentaria-1 planned for this quarter and to execute fracture stimulated horizontal appraisal drilling,” he added.

“These activities are critical steps in our rapid commercialisation plan which positions Empire to be the first operator in the basin to commence commercial production,” he added.

Shares in Empire are down 2.82 per cent on the market and are trading at 34.5 cents at 1:09 pm AEST.

EEG by the numbers
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