9th Jul 2021 11:57
(Alliance News) - Empyrean Energy PLC on Friday said it has raised GBP5.0 million through a placing of shares, which will go towards securing a drilling rig and ordering long lead items, in preparation for drilling the Jade prospect at the Block 29/11 licence rig in China.
The oil & gas firm has placed 83.7 million shares at a price of 6.0 pence each, which reflects 29% discount to Thursday's closing price of 8.5p.
Shares in Empyrean Energy were 25% lower at 6.34 pence on Friday in London.
Those taking part in the placing will receive one warrant exercisable at 12p each for every two new shares subscribed, with a 12-month term.
The Jade prospect drilling campaign, which is targeted to take place in late 2021, is looking for a "world class" conventional oil target, which has a geological chance of success of 41%. Empyrean said.
The Jade prospect has a Gaffney Cline audited mean in place potential of 225 million barrels.
"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," said Chief Executive Officer Tom Kelly.
"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," Kelly added.
By Dayo Laniyan; [email protected]
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