Thursday March 26, 2015: Empire Oil & Gas (EGO) says it is poised to embark on an aggressive exploration campaign in the Perth Basin after raising $15.7 million through a share placement and underwritten rights issue.
Empire, which owns the Red Gully gas and condensate project in WA, raised $5.5 million through a share placement with a further $10.2 million to be raised through a one-for-four rights issue. Both are priced at 0.5c.
Empire said the proceeds would fund drilling of the Red Gully North well, which has potential recoverable reserves of more than 10 petajoules and would be tied in to the existing Red Gully plant. This could increase the project's production and life.
The raising will also fund a major airborne geophysical survey over Empire's Perth Basin acreage to generate additional exploration prospects. The results will be used to help attract major farm-in partners to drive the exploration program, Empire said.
The company is also preparing for the start of Tranche 2 of its gas supply contract with Alcoa in August. It said this would increase cash from sales by $23 million a year.
ERM Power said it would take up its rights at a cost of $1.8 million and will play a role in the sub-underwriting, meaning it could maintain its 19.9 per cent stake in Empire.
Empire, which owns the Red Gully gas and condensate project in WA, raised $5.5 million through a share placement with a further $10.2 million to be raised through a one-for-four rights issue. Both are priced at 0.5c.
Empire said the proceeds would fund drilling of the Red Gully North well, which has potential recoverable reserves of more than 10 petajoules and would be tied in to the existing Red Gully plant. This could increase the project's production and life.
The raising will also fund a major airborne geophysical survey over Empire's Perth Basin acreage to generate additional exploration prospects. The results will be used to help attract major farm-in partners to drive the exploration program, Empire said.
The company is also preparing for the start of Tranche 2 of its gas supply contract with Alcoa in August. It said this would increase cash from sales by $23 million a year.
ERM Power said it would take up its rights at a cost of $1.8 million and will play a role in the sub-underwriting, meaning it could maintain its 19.9 per cent stake in Empire.