Empire Energy Acquires Beetaloo Basin Portfolio from Pangaea Resources
ASX-listed Empire Energy Group Ltd. has entered into a sale and purchase agreement with Sydney-based Pangaea NT Pty Ltd. to acquire an 82.5% operated interest in five exploration tenements located onshore in the Beetaloo basin in Australia.
Under the terms of the deal, Empire will acquire interests in the tenements for a total consideration of A$54.7 million, comprised of A$5.0 million in cash plus a stock payment of A$49.7 million via the issuance of 140 million Empire shares valued at A$0.355 per share (based on the company’s closing share price 1-trading day prior to the deal announcement). In addition, Empire will also issue 8 million unlisted options to Pangaea with an exercise price of A$0.70 per share. The consideration shares represent approximately 30% of Empire’s issued share capital as of the date of the announcement, prior to any capital raise.
Exploration permits EP167, EP168, EP169, EP305, and EP198 cover a combined area of 11.8 million net acres (net to the acquired 82.5% interest) in Northern Territory, located adjacent to the Amedeus Gas Pipeline, which connects to the Northern Gas Pipeline. Texas-based Energy & Minerals Group (EMG) holds the remaining 17.5% interest in the permits.
The assets are estimated to contain P50 prospective resources and 2C contingent resources of approximately 26.6 trillion cubic feet equivalent (Tcfe) and 147.3 billion standard cubic feet equivalent (Bcfe), respectively, net to the acquired interests. Previous partners conducted multiple phases of exploration on the tenements, including a full-tensor airborne gravity gradiometric survey, multiple 2D seismic surveys, and a multi-year drilling program of 7 wells which included extensive core capture.
“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,” said Alex Underwood, Managing Director of Empire Energy.
Sydney-based Empire Energy is engaged in conventional oil and natural gas production with operations in the Appalachian and the Mid-Contingent regions of the United States, and also holds highly prospective exploration acreage across the McArthur and Beetaloo basins in Australia.
Privately-held Pangaea Resources is primarily engaged in exploration and production activities in Australia, and currently holds interest in licenses located in the Beetaloo, Birrindudu, Bowen and Surat basins.
Amicaa is acting as financial advisor to Empire Energy, while Morgan Stanley is advising Pangaea on the deal.
The transaction is subject to Empire shareholder consent and government approvals, and is expected to be completed in June.