TIDMEME
RNS Number : 7453E
Empyrean Energy PLC
09 July 2021
This announcement contains inside information
Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil &
Gas
9 July 2021
Empyrean Energy PLC ("Empyrean" or the "Company")
Empyrean completes GBP 5.02 million (US$6.92m) Placement in
preparation for Jade Prospect drilling in 2021
Empyrean Energy plc ("Empyrean" or the "Company"), the oil and
gas development company with interests in China, Indonesia and the
United States, advises that it has placed 83,698,498 new ordinary
shares in the Company (the "New Ordinary Shares") at a price of
6.0p per New Ordinary Share (the "Placing Price") to raise
GBP5,021,910 (before costs) (the "Placing"). Subscribers to the
Placing will also receive 1 warrant exercisable at 12p each for
every 2 New Ordinary Shares subscribed (the "Placing Warrants").
The Placing Warrants have a 12-month term from the date of issue.
Further, if the Placing Warrants are exercised within 3 months
Subscribers will receive a replacement incentive warrant expiring
15 months from the Placement settlement date with an exercise price
of 12p (the "Substitute Warrants") plus a bonus warrant expiring 24
months from the Placement settlement date with an exercise price of
18p. (the "Bonus Warrants" and, together with the Placing Warrants
and the Substitute Warrants, the "Warrants"). The Placing and the
issue of the Warrants is being completed under the Company's
existing authorities and is not subject to the approval of
shareholders.
Following the Placing, the Company's enlarged issued share
capital will comprise 573,129,113 ordinary shares of 0.2p each (the
"Shares"), each with voting rights. This figure may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, securities of the Company under the
Financial Conduct Authority's Disclosure and Transparency
Rules.
The Placing Price represents a 29.4% discount to the price of
the Company's shares as at close of business on 7 July 2021 (8.5p),
a 21.7% discount to the 7-day volume weighted average price
('VWAP') and a 13.4% discount to the 30-day VWAP of the Company's
shares.
The majority of the subscribers to the Placing were
institutional and high net worth investors, including both new
investors and existing shareholders, and also clients of First
Equity Limited in the United Kingdom, who acted as UK manager to
the Placing, and Petra Capital, who acted Australian manager to the
Placing. Non-executive director of the Company, John (Spencer)
Laycock, subscribed for 200,000 New Ordinary Shares in the
Placing.
Following his participation in the Placing, Mr Laycock has an
interest in 3,800,000 New Ordinary Shares, representing 0.66% of
the enlarged issued share capital of the Company.
Funds raised under this Placing will primarily be used to secure
a suitable drilling rig and order long lead items and for the
Company's general working capital requirements as it prepares to
drill the Jade prospect at its 100% owned Block 29/11 license in
China, scheduled for late 2021. Funds raised from the exercise of
any Warrants will be used for drilling preparation activities and
drilling of the Jade prospect and working capital.
The Company has previously been quoted US$18.5m to drill the
Jade well with testing of any oil column to be in addition to this
amount. Following the well engineering and design work completed
with AGR, the Company has been working towards securing a rig and
finalising costs for the well. The Company will now finalise these
negotiations and will make a further announcement in due
course.
The 2021 drilling campaign is targeting a world class
conventional oil target in the Jade prospect, to which Gaffney
Cline assigned a Geological Chance of Success ("GCoS") of 32%.
Subsequent to this independent assessment, the Company has
completed a gas cloud study and post stack seismic inversion study
that further mitigate risk. As a result, the Company's internal
assessment of the GCoS for the Jade prospect now stands at 41%. The
Jade prospect has a Gaffney Cline audited mean in place potential
of 225 MMbbl and a P10 in place upside of 395 MMbbl. The drilling
of the Jade prospect is the first of the three identified prospects
within Block 29/11, which also contains the Topaz and Pearl
prospects. The combined audited mean in place potential of all
three prospects is 884 MMbbl and a P10 in place upside of 1,588
MMbbl.
Application will be made for the New Ordinary Shares to be
admitted to trading on AIM. Admission is expected to take place on
22 July 2021. The New Ordinary Shares will rank pari passu with
existing shares in issue.
The information contained in this announcement has been reviewed
by Empyrean's Executive Technical director, Gaz Bisht, who has over
31 years' experience as a hydrocarbon geologist and
geoscientist.
Tom Kelly, CEO of Empyrean, commented on the Placing:
"We are very pleased to successfully complete this placing which
provides the necessary funding to accelerate our preparation
activities, including the securing of the rig, for the drilling of
the extremely exciting Jade Prospect in China, which we are
targeting to occur before the end of the 2021 calendar year, as
well as providing working capital funding. The Placing Warrant
structure with early exercise incentive Substitute and Bonus
warrants also provides a mechanism by which the shareholders can
potentially achieve a situation where the well is completely funded
without the need for asset sales, joint venture or further placing.
It puts the Company's destiny largely into the hands of
shareholders. Whilst asset sales, joint venture or further placing
are all worthwhile alternatives to drill Jade, it is the Company's
view that the least dilutive solution, given that any asset sale
may not settle before drilling starts, is for the remaining funds
to come via warrant exercise. We look forward to updating
shareholders on what is shaping up to be one of the most exciting
wells drilled by a junior oil explorer this year."
**S**
For further information:
Empyrean Energy plc
Tom Kelly Tel: +61 6 146 5325
Cenkos Securities plc
Neil McDonald Tel: +44 (0) 131 220 9771
Pete Lynch Tel: +44 (0) 131 220 9772
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS
DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY
ASSOCIATED WITH THEM
1 Details of the person discharging managerial responsibilities/person
closely associated
a) Name: John Laycock
----------------------------- -----------------------------------------
2 Reason for the Notification
------------------------------------------------------------------------
a) Position/Status: Non-Executive Director
----------------------------- -----------------------------------------
b) Initial notification/ Initial Notification
Amendment:
----------------------------- -----------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
------------------------------------------------------------------------
a) Name: Empyrean Energy Plc
----------------------------- -----------------------------------------
b) LEI: 213800ZRH1WBHEWDFA57
----------------------------- -----------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
------------------------------------------------------------------------
a) Description of the financial Ordinary shares of 0.2p each
instrument, type of GB00B09G2351
instrument:
Identification code:
----------------------------- -----------------------------------------
b) Nature of the transaction: Issue of 200,000 New Ordinary Shares
and warrants to subscribe for 100,000
Ordinary Shares at 12p each, with
a 12-month term.
----------------------------- -----------------------------------------
c) Price(s) and Volume(s): Shares
Price Volume
6p 200,000
Warrants Exercise Price(s) Volume(s)
GBP0.12 100,000
----------
----------------------------- -----------------------------------------
d) Aggregated Information: N/A (Single transaction)
- Aggregated Volume
- Price
----------------------------- -----------------------------------------
e) Date of the Transaction: 8 July 2021
----------------------------- -----------------------------------------
f) Place of the Transaction: London Stock Exchange, AIM (LON:EME)
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