10th Jul 2014 10:01
LONDON (Alliance News) - Empyrean Energy PLC Thursday put itself up for sale as part of a review of its strategic options in order to maximise value for its shareholders, following a number of recent corporate acquisitions for companies close to its operations.
The AIM-listed profitable US onshore oil and gas development and production company said it has decided to consider its strategic options to capitalise on the recent acquisition activity, and has put itself up for a 'formal sale process' and is now awaiting offers.
Empyrean has a range of assets in Texas and California, with its flagship project being the Sugarloaf project in the prolific Eagle Ford Shale region of Texas. It has a 3% interest in the site, which is operated by US major Marathon Oil Co.
The company has interests in 128 gross producing wells with full development expected to reach over 500 wells.
Other assets include a 57.2% interest in the Eagle Oil Pool Development Project located in the San Joaquin Basin, southern California. The Basin is a proven oil and gas province.
In the company's first-half ended September 30 its pretax profit rose to GBP2.2 million from GBP66,000 a year earlier as revenues jumped due to increased drilling at the Sugarloaf asset.
In February, Empyrean noted that Aurora Oil & Gas Ltd, one of its partners in the Sugarloaf project was to be acquired for a high premium. It said Aurora would be bought by Baytex Energy Corp for AUD4.10 per share, implying a AUD1.84 billion market capitalisation, representing a 52% premium to Aurora's one-week volume weighted average price up until February 6.
On Thursday, Empyrean said its strategic options are not limited to a full sale, and include a farm down or disposal of its existing assets or a merger process.
The company said it has appointed Macquarie Capital to conduct the sale process and Cenkos Securities PLC as its joint financial adviser to oversee the process.
Empyrean Energy shares 9.9% to 19.50 pence, putting it amongst the top ten AIM All-Share risers on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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