Total
0
Shares
Empire Energy Group (ASX:EEG) - CEO and Managing Director, Alex Underwood
CEO and Managing Director, Alex Underwood
Source: The Pick Magazine [YouTube]
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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
More From The Market Herald

" Argosy Minerals (ASX:AGY) progresses Rincon Lithium Project

In a company update, Argosy Minerals (AGY) said it remains on track to achieve first commercial production at the Rincon Lithium Project, located

" State Gas (ASX:GAS) further progresses Central Queensland gas assets

State Gas (GAS) has further progressed its activities at the Reid Dome and Rolleston-West gas projects in Central Queensland.
Global Oil and Gas (ASX:GLV) - Chairman, Chris Zielinski

" Global Oil and Gas (ASX:GLV) completes fieldwork at EP-127

Global Oil and Gas (GLV) has completed an infield hydrogen and helium survey at its wholly-owned EP-127 site.
Senex Energy (ASX:SXY) - Managing Director & CEO, Ian Davies

" Senex Energy (ASX:SXY) extends exclusivity period for POSCO again

POSCO International has been granted an extended period of exclusivity as it contemplates its acquisition of Senex Energy (SXY).