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Empire Energy Group (ASX:EEG) - CEO and Managing Director, Alex Underwood - The Market Herald
CEO and Managing Director, Alex Underwood
Source: The Pick Magazine [YouTube]
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  • EMG NT has exercised its right to sell its interest in five Beetaloo Basin tenements to an Empire Energy Group (EEG) subsidiary
  • The subsidiary, Imperial Oil & Gas, will gain a 17.5 per cent interest in the tenements for a mix of cash, Empire shares and options
  • After the transaction completes, EMG NT will own roughly five per cent of ordinary share capital in Empire Energy Group
  • The company recently raised funds for acquiring the other 82.5 per cent interest in the tenements from Pangaea NT
  • Empire Energy Group is down 3.12 per cent and trading at 31 cents per share

EMG NT has exercised its right to sell its interest in five Beetaloo Basin tenements to an Empire Energy Group (EEG) subsidiary.

EMG Northern Territory is a member of The Energy & Minerals Group of Texas, USA, which holds a 17.5 per cent interest in the tenements. EMG NT has informed the tenements’ majority interest owner, Pangaea NT, that it would exercise its rights to sell that interest.

Empire Energy’s wholly owned subsidiary, Imperial Oil & Gas, will acquire the 17.5 per cent interest in the Beetaloo Basin tenements for a combination of cash, Empire shares and options. Specifically, the consideration will consist of $1.061 million cash, 29,696,970 ordinary Empire shares, and 1,696,970 options.

Out of nearly 30 million ordinary Empire shares, 11,666,667 will be escrowed for 12 months from the date of issue, with another 13,348,485 escrowed for 24 months from the date of issue.

The options will allow the owners to acquire further ordinary shares in Empire Energy at 70 cents per share, before expiring three years after the issue date.

Imperial Oil & Gas’ acquisition of the interest from EMG NT is subject to long form documentation and shareholder approval. If the transaction is completed, EMG NT will own roughly five per cent of ordinary share capital in Empire Energy Group.

Earlier this month, Empire Energy signed a binding sale and purchase agreement for the acquisition of Pangaea NT’s majority interest in the tenements from Pangaea NT. Days later, the company revealed that it had raised $30 million in a placement to fund this acquisition.

If Empire Energy acquires the remaining 82.5 per cent interest, will have successfully purchased 100 per cent of the five tenements in the Beetaloo Basin.

Empire Energy Group is down 3.12 per cent, trading at 31 cents per share at 1:03 pm AEST.

EEG by the numbers
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