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Highlights
- Empyrean secures an additional 12.8% working interest in the Wilson River-1 well, increasing its stake to 52.8%.
- £625,000 raised through a share placing of 500 million new ordinary shares at 0.125p per share.
- Funds to support pre-drill expenses and working capital, with drilling, logging, and testing preparations underway.
Empyrean Energy plc (LSE:EME), a prominent oil and gas development company with operations in Australia, Indonesia, and the United States, has announced an agreement to increase its working interest in the Wilson River-1 well. The company has secured the right to earn an additional 12.8% stake, bringing its total working interest in the project to 52.8% upon completion of the earn-in process.
To support this expansion, Empyrean has successfully raised £625,000 (before costs) through the placement of 500 million new ordinary shares at an issue price of 0.125p per share. The placement was executed at a 31.8% discount to the closing share price of 0.168p on 10 February 2025 and a 6% discount to the volume-weighted average price over the previous ten trading days.
Strategic Earn-In Agreement
The agreement to acquire the additional working interest was negotiated with Chi Oil and Gas Pty Ltd ("Chi Oil"), the current leaseholder of ATP1173, where the Wilson River-1 well is set to be drilled. Under the revised agreement, Empyrean and Condor Energy Services Limited ("Condor Energy") will collectively earn an additional 20% stake in ATP1173 by covering key pre-drill expenses, such as surveys and permits included in the project's Authority for Expenditure (AFE).
As per the agreement, Empyrean will fund 66% of these costs, while Condor Energy will contribute 34%. Upon completion, the revised working interests in ATP1173 will be as follows:
- Empyrean Energy – 52.8%
- Condor Energy – 27.2%
- Chi Oil – 20.0%
Funding Allocation and Future Plans
The funds raised through the placement will be allocated towards Empyrean’s anticipated share of additional costs for the drilling, logging, and testing of the Wilson prospect, a key development first announced on 23 January 2025. A portion of the proceeds will also be used for general working capital purposes, ensuring the company maintains financial flexibility as it advances its exploration and development activities.
