Empire Energy Announces Transformational Acquisition of Pangaea Resources

Source: www.gulfoilandgas.com 4/14/2021, Location: Not categorized

Empire Energy has signed a binding Sale and Purchase Agreement with Pangaea (NT) Pty Ltd as trustee of the Pangaea (NT) Unit Trust to acquire Pangaea’s Beetaloo Sub-basin portfolio for a combination of cash, ordinary shares and unlisted options in Empire as set out in the attached presentation. Empire is also carrying out a capital raising. Further details about the capital raising will follow in due course.

- Empire to acquire an operated 82.5% interest in five tenements across the Beetaloo Sub-basin onshore Northern Territory

- Empire’s best estimate Prospective Resources have more than doubled to ~41 TCFe comprising 37 TCF gas and 657 MMbbls liquids (condensate and oil)

- Empire’s 2C Contingent Resources have increased by more than 350% comprising 171 BCF gas and 2.9 MMbbls liquids

- $5 million cash payable and 140 million Empire shares to be issued to Pangaea upon completion of the transaction. Pangaea will also be issued 8 million unlisted Empire options with an exercise price of $0.70 per share

- Transaction materially enhances Empire’s early commercialisation plans for the Beetaloo and provides Empire with multiple drill-ready targets

- The acquisition is subject to Empire shareholder and Northern Territory Government approvals. Completion is expected to occur inJune 2021

Comments from Empire Managing Director Alex Underwood:

'This acquisition confirms Empire’s position as the leading Beetaloo independent. The transaction significantly increases Empire’s operated acreage, Prospective Resources and Contingent Resources in this key region. Empire now controls a globally significant gas resource which strengthens our early commercialisation strategies. Pangaea’s tenements overlap the Amadeus Gas Pipeline, which in addition to the McArthur River Mine Gas Pipeline that crosses EP187, provides Empire with multiple pathways to market utilising existing infrastructure.

We are delighted to welcome Pangaea and Mr Paul Fudge to the Empire shareholder register and to our Board. The development of these resources is crucial to meeting the energy needs of Australia and the Asian region.'

Completion

Completion of the transaction issubject to standard Northern Territory Ministerial approvals and Empire shareholder approval as mentioned above.Empire will seek shareholder approval for the issuance of shares and options under this transaction at an EGM to be convened as soon as practicable. The notice of shareholder meeting will contain an Independent Expert’s Report.

Advisors

amicaa is acting as financial advisor and Baker McKenzie is acting as legal advisor to Empire on the transaction.

Morgan Stanley is acting as financial advisor and Herbert Smith Freehills is acting as legal advisor to Pangaea on the transaction.

Blue Ocean Equities and Morgans Financial are acting as Joint Lead Managers to the capital raising.


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