Empyrean Energy to raise £2.7m to support acquisition of oil and gas services company
AIM-listed Empyrean Energy is to raise up to £2.7m to support the acquisition of a 20% stake in West Natuna Exploration, an oil and gas services company operating in Indonesia.
The oil and gas explorer is to raise the proceeds from a placing of 77.45m shares at a price of 3.5p each for every four shares held. The new shares will be admitted to trade on AIM on 12 May.
Empyrean is to buy West Natuna, which holds a 100% interest in the highly prospective Duyung production sharing contract, from Conrad Petroleum for $4m to be paid in two tranches
The Duyung contract is an offshore permit of over 1,100 km square in the West Natuna Basin and is located in water depths of 60-110 metres, close to existing pipeline infrastructure owned by the Indonesian government. T
It also includes the Mako shallow gas discovery which, according to the report completed by Leap Energy, a subsurface consulting and technology delivery group, is estimated to contain 400bn cubic feet of gas to 1.3trn cubic feet of gas in place.
Shares in Empyrean Energy were up 6.67% to 4p at 1018 BST.