Empire Energy has executed binding term sheets with Macquarie Bank for the establishment of new credit facilities totaling A$65 million. Together with existing cash on hand, proceeds from the credit facilities will be applied to Carpentaria-5H ('C-5H') and the Carpentaria Gas Plant and associated infield infrastructure. The A$65 million credit facilities with Macquarie comprise:
• A$30 million R&D Facility will fund exploration, appraisal and development activities including Carpentaria-5H and construction of infield infrastructure representing an upsizing and maturity extension of existing A$2.25 million facility
• A$5 million Performance Bond Facility to meet Empire’s Northern Territory environmental bonding obligations
• New A$30 million Midstream Infrastructure Facility to finance refurbishment and construction of the Carpentaria Gas Plant and associated infrastructure
• Empire is currently drilling ahead in the vertical section of the intermediate hole at Carpentaria-5H at a depth of 770 metres MD
• Cash at bank has increased to A$34.8 million following receipt of A$1.3 million from the Australian Taxation Office for September 2024 BAS
Comments from Managing Director Alex Underwood:
'The financing package with Macquarie announced today followed an extensive competitive tender process and provides Empire with the best terms currently available in the debt market. Macquarie has been financing Empire Energy for 15 years.
This financing package, along with existing cash resources, will fund the drilling, completion and flow testing of C-5H and the installation of the Carpentaria Gas Plant and associated in-field infrastructure. This represents a key milestone in Empire’s stated goal to move into pilot production, from the Beetaloo Basin commencing in 2025 to meet demand for gas in the Northern Territory and, ultimately, Australia’s supply constrained East Coast market.
The terms of the financing package demonstrate Macquarie’s innovative approach to provision of capital to the upstream oil and gas industry, with significantly reduced dilution of shareholders’ interests in the company compared to raising additional equity capital for the Carpentaria Pilot Project.'
Source: Empire Energy
