Empyrean Energy PLC (AIM: EME) has announced the successful completion of a fundraising effort, securing £700,000 before expenses through a share placement.
This financial boost is set to cover ongoing licensing fees and permit costs, supporting the company’s ventures, notably the Mako gas field in Indonesia and its offshore exploration areas in China.
The company has issued 280 million new shares at a price of 0.25p each. Investors in this placement, including company directors, have also been granted one warrant for every two shares purchased, exercisable at 0.5p. Novum Securities facilitated this placement.
Currently, Empyrean is in the process of finalizing a gas sales agreement for the Mako gas field.
Tom Kelly, Empyrean’s CEO, expressed gratitude to both new and existing shareholders for their support, highlighting the anticipation for the completion of the Gas Sales Agreement (GSA) with Sembcorp. This agreement is a significant step for the Mako project. Despite delays, Kelly noted the improved pricing formula for gas sales, which is expected to positively impact the Duyung PSC/Mako sell-down initiatives.
Additionally, Empyrean has introduced salary sacrifice arrangements for its directors, involving shares, as a strategy to conserve cash while continuing to advance its project activities.
Mako Gas Field Update
As previously announced, Conrad Asia Energy (“Conrad”), the operator and 76.5% partner in Mako is conducting a sell down process with a global investment bank in order to fund the development of Mako. Mako is the largest undeveloped gas accumulation in the immediate region.
Mako has received government approval for a Plan of Development and Conrad have agreed key (non-binding) terms with Sembcorp Gas Pte Ltd, a Singapore based major gas buyer that have been endorsed by the Indonesian regulator SKK Migas for the GSA. Subsequent commercial negotiations have resulted in an improved price formula for the GSA. Since the agreement with Sembcorp Gas Pte Ltd, a number of additional parties have expressed interest in Mako.
