Empire Energy Group Ltd (EEG.AX) Acquisition of EMG Beetaloo Interests
Sydney, Australia, April 26, 2021 - (ABN Newswire) - Empire Energy Group Limited (ASX:EEG) (OTCMKTS:EEGUF) is pleased to announce that EMG Northern Territory Holdings Pty Limited ("EMG NT"), a member of The Energy & Minerals Group ("EMG"), has delivered a Notice of Exercise of Tag Along Right ("the Tag Right") to Pangaea (NT) Pty Limited ("Pangaea") pursuant to which it has exercised its right to sell its 17.5% interest in EP167, EP168, EP169, EP198 and EP305 (collectively, "the Tenements") to Imperial Oil & Gas A Pty Limited, a wholly owned subsidiary of Empire, on the same pro rata terms as the sale of Pangaea's interests in the Tenements. The Tag Right was flagged to Empire shareholders in the announcement dated 14 April 2021.
EMG is a private investment firm focused on the natural resources sector with Regulatory Assets Under Management of approximately US$12 billion as of 31 December, 2020, based in Houston, Texas, USA.
The key financial terms of the acquisition of the EMG NT interests, which will be subject to long form documentation and shareholder approval at an Extraordinary General Meeting to approve the acquisition of the Tenements, will be as follows:
- $1.061 million cash (to be funded from existing cash at bank)
- 29,696,970 ordinary Empire shares, of which 11,666,667 will be escrowed for 12 months from the date of issue and 13,348,485 will be escrowed for 24 months from the date of issue
- 1,696,970 options to acquire ordinary Empire shares at $0.70 per share which will expire 3 years after their issue date
On completion, EMG will own approximately 5% of the ordinary share capital of Empire.
Empire looks forward to welcoming EMG to the register and will advise shareholders once the Sale and Purchase Agreement between Imperial and Pangaea has been amended to incorporate the acquisition of the EMG NT interests in the Tenements.
Following the acquisition of EMG NT's interests in the Tenements, Empire will own a 100% interest in all of its Beetaloo and McArthur Basin properties.
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About Empire Energy Group Ltd:
Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) holds over 14.5 million acres of highly prospective exploration tenements in the McArthur and Beetaloo Basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds 80% has very considerable conventional and unconventional hydrocarbon potential. The Beetaloo sub-Basin, in which Empire holds a substantial position, has independently assessed world class hydrocarbon volumes in place with a major ramp up in industry activity underway to appraise substantial discoveries already made by major Australian oil and gas operators.
Empire Energy is an experienced conventional oil and gas producer with operations in the Appalachia region (New York and Pennsylvania). Empire has been successfully developing and producing oil and gas since 2006.
Empire Energy Group Ltd
Empire Energy Group Ltd
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