Empyrean Energy, the oil and gas development company with interests in China, Indonesia and the United States, advises that it has raised £700,000 (before costs) through a placing of 280,000,000 new ordinary shares of 0.2p each in the Company at a price of 0.25p per Placing Share. Subscribers to the Placing will also receive 1 warrant exercisable at 0.5p each for every 2 Placing Shares subscribed for. The Placing Warrants will expire 2.5 years from the date of issue.
Investors in the Placing have agreed a 3-month lock-in on Placing Shares issued pursuant to the Placing. In addition, the Placing Warrants will only become exercisable if the relevant Placing Shares are held for a minimum period of 6 months from the date of admission to trading on AIM.
The Issue Price represents a 20.6% discount to the price of the Company's ordinary shares of 0.2p each as at close of business on 12 February 2024 (0.315p) and a 27.1% discount to the volume weighted average price of the Shares for the ten days prior to close of business 12 February 2024 (0.343p).
The funds raised from the Placing will be used:
- for ongoing prospect, licensing fees and permit costs at Block 29/11, Offshore China;
- for ongoing costs associated with advancing the Mako Gas Field toward production, including finalising the Gas Sales Agreement, binding documentation and completing Duyung PSC sell-down process; and
- for general working capital requirements.
The Placing is being completed under the Company's existing authorities and is not subject to the approval of shareholders.
Mako Gas Field Update
As previously announced, Conrad Asia Energy, the operator and 76.5% partner in Mako is conducting a sell down process with a global investment bank in order to fund the development of Mako. Mako is the largest undeveloped gas accumulation in the immediate region.
Mako has received government approval for a Plan of Development and Conrad have agreed key (non-binding) terms with Sembcorp Gas Pte Ltd, a Singapore based major gas buyer that have been endorsed by the Indonesian regulator SKK Migas for the GSA. Subsequent commercial negotiations have resulted in an improved price formula for the GSA. Since the agreement with Sembcorp Gas Pte Ltd, a number of additional parties have expressed interest in Mako.
Empyrean CEO, Tom Kelly, stated: 'Empyrean would like to thank existing and new shareholders for their support as we look forward to the finalisation of the GSA with Sembcorp, a major milestone for the Mako Project. Whilst this has taken longer than anyone envisaged, we are delighted with the improved pricing formula for gas sales which should have positive implications for the Duyung PSC/ Mako sell-down efforts.'
Source: Empyrean Energy
