Empyrean Energy PLC First Completion of Reduction of Duyung Interest (4549W)
17 Aprile 2019 - 8:00AM
UK Regulatory
TIDMEME
RNS Number : 4549W
Empyrean Energy PLC
17 April 2019
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
Empyrean Energy PLC ("Empyrean" or the "Company")
First Completion - Reduction of Interest in Duyung PSC,
Indonesia, for Cash and Shares
17 April 2019
Empyrean Energy Plc ("Empyrean"), the oil and gas development
company with interests in China, Indonesia and the United States,
is pleased to advise that, in accordance with the binding,
conditional purchase agreement (the "Agreement") pursuant to which
Coro Energy plc ("Coro") has agreed to acquire a 15% interest in
the Duyung Production Sharing Contract ("Duyung PSC") from West
Natuna Exploration Limited ("WNEL"), Empyrean has now received its
pro rata share of the final cash and share component of the
Consideration (as defined below) to the existing owners of
WNEL.
Under the Agreement, Coro will acquire a 15% interest in the
Duyung PSC for aggregate consideration in cash and Coro shares of
US$4.8 million and the contribution of US$10.5 million by Coro
toward the 2019 drilling campaign at the Mako gas field (the
"Consideration"). The cash and share component of the Consideration
has been paid pro rata to the previous owners of WNEL, being
Empyrean, which held a 10% effective interest in the Duyung PSC,
and Conrad Petroleum Ltd ("Conrad"), which held a 90% effective
interest in the Duyung PSC, each through a shareholding in
WNEL.
WNEL is the owner and operator of the Duyung PSC in the West
Natuna basin, offshore Indonesia which contains the Mako gas
field.
Highlights
-- The total cash and share consideration paid by Coro was
US$2.95 million in cash and US$1.85 million in the form of
60,905,037 new ordinary shares of 0.1p each in Coro (the
"Consideration Shares"). Coro has also paid the remaining US$9.3
million of the US$10.5 million drilling campaign contribution to
WNEL, having paid US$1.2 million to WNEL on 11 February 2019.
-- Empyrean received its final cash component of the
Consideration of US$120,000 from Coro on 17 April 2019, having
received the initial cash component of US$175,000 on 11 February
2019.
-- Empyrean was issued 6,090,504 Consideration Shares of 0.1p
each with a value of US$185,000. The issue price of the
Consideration Shares was calculated using a 30-day volume weighted
average price of Coro's shares up to the date of signing the
Agreement, being 2.3492 pence per Consideration Share. Application
has been made for the Consideration Shares to be admitted to
trading on AIM which is expected to occur on 24 April 2019.
-- Following completion of the transaction, which is now only
subject to necessary Government and regulatory approvals, WNEL will
make a direct transfer of its interest in the Duyung PSC to
Empyrean and the other owners. Empyrean's interest will be a direct
ownership and no longer held through WNEL. In the meantime, until
all approvals for direct PSC ownership are gained, Coro will
receive transfers of 15% of the shares of WNEL, of which Empyrean
will transfer to Coro 1.5% of its current 10% of shares in
WNEL.
-- Following completion, the owners of the Duyung PSC will be
Conrad (76.5%), Empyrean (8.5%) and Coro (15%)
-- Details of the 2019 drilling campaign will be set out in an
agreed work programme and budget for the year (the "2019 Work
Programme")
Empyrean CEO, Tom Kelly commented "Empyrean has now received
cash and shares from Coro totalling $0.48 million and the JV has
received a further $10.5 million towards the upcoming appraisal and
exploration. This positions us as largely funded for what is going
to be a uniquely exciting appraisal program. We will be appraising
the existing Mako Gas discovery whilst deepening one well to test
the deeper Tambak prospect. We believe this creates a very
compelling risk versus reward profile for this deeper appraisal
well."
Further announcements will be made in due course, as
appropriate.
**ENDS**
For further information:
Empyrean Energy plc
Tom Kelly Tel: +61 8 9380 9920
Cenkos Securities plc
Neil McDonald Tel: +44 (0) 131 220 9771
Beth McKiernan Tel: +44 (0) 131 220 9778
Pete Lynch Tel: +44 (0) 131 220 9772
St Brides Partners Ltd
Priit Piip Tel: +44 (0) 20 7236 1177
Frank Buhagiar Tel: +44 (0) 20 7236 1177
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END
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