Empire Energy (ASX:EEG) Deepens Beetaloo Basin Footprint with Pangaea Assets  

Source: Kodda, Shutterstock


  • Empire Energy is acquiring five oil & gas assets in the prolific Beetaloo Basin.
  • The acquisition will involve cash payment and issue of ordinary shares and unlisted options.
  • The deal will allow access to the gas-starved Eastern Australia with a potential of overseas export through the existing LNG terminals.
  • The company is also planning a capital raising program.

Empire Energy Group Limited (ASX:EEG) has reached a binding sale and purchase agreement with Pangaea (NT) Pty Ltd. The agreement is for the acquisition of oil & gas assets in the Beetaloo Sub-basin through cash, ordinary shares and unlisted options in Empire.

Copyright © 2021 Kalkine Media Pty Ltd.

Latest Market Update: ASX 200 today: How dip in bond yields is keeping Australian shares higher

Pangaea controls an 82.5% interest in five tenements in the Beetaloo Basin. The remaining 17.5% interest is held by the Energy and Minerals Group (EMG) of Texas. Empire is in discussions with EMG to acquire full ownership of the assets.

To conclude the Sale and Purchase Agreement, Empire will issue 140 million shares to Pangaea and 8 million options exercisable at a price of A$0.7 in addition to a cash consideration of A$5 million. The acquisition will endow Empire with world-class oil & gas assets with Best Estimate Prospective Resources of 22 TCF natural gas and 630 MMbbl of liquids.

If EMG also agrees to the deal, Empire would further shell out A$1.06 million in cash, 29.7 million of its shares and 1.7 million options @A$0.7, thus gaining 100% stake in the Beetaloo assets.

Overview of Beetaloo Assets

Netherland, Sewell & Associates, Inc. (NSAI) has certified 2C contingent resource of 130 Bcf natural gas and 2.9 MMbbl of liquids, net to Pangaea, on the five assets. The acquisition will grant access to 12 million acres of area in the Beetaloo Basin.

Copyright © 2021 Kalkine Media Pty Ltd.

Pangaea and its JV partner EMG had invested A$110 million during 2013-201616 in the tenements. They drilled one exploration and four appraisal wells on the assets. Two stratigraphic holes were also drilled to study the geology and structure of the subsurface. The acquisition will also grant Empire access to

valuable data sets including 1,800km of 2D seismic survey, airborne survey of over 29,000km and core sample data analysis of more than 3,500m.

Beetaloo is a highly prolific oil & gas basin, with shale being a primary play with high resource concentration and reservoir properties similar to the shale reserves of the US.

Some of the other key players holding strategic assets in the basin are Santos Limited (ASX:STO), Origin Energy (ASX:ORG) and Armour Energy Limited (ASX:AJQ)

Value Addition to Empire After Acquisition

The acquisition will increase the 2C contingent gas resource of Empire by 300% to 171 Bcf while the Company will book maiden resource in the liquid category.

The projects in the Beetaloo Basin are also receiving government support. The government has announced the A$224 million Beetaloo Strategic Basin Plan. The fund could be utilised for exploration as well as development of infrastructure to access the market as well as prospects in the basin.

Also Read: Regis Resources (ASX: RRL) Pens Deal to Acquire Stakes in Tropicana Project

Empire could also leverage from the enormous market potential of the gas starved Eastern Australia. The location of the basin makes it ideal for both domestic gas supply as well as international supplies through the Darwin and Gladstone LNG export terminals.

Read Also: Oil booms on OPEC’s demand recovery anticipation

Share Price Movement

The shares of Empire had a flat opening today at the market. At around 03:22 PM (AEST), the shares were trading at A$0.355 on 14 April 2021. The company has a market cap of A$114.99 million.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK