Empire Energy Group Ltd. (ASX:EEG) is making significant strides towards its goal of first gas production in early 2025, backed by a recently completed capital raise and ongoing project developments in the Greater McArthur Basin. The company has successfully divested its US assets and raised approximately A$46.8 million through a strategic combination of equity and royalty sales, positioning itself with a robust financial position to push forward with its pilot project. This financial maneuver includes A$39 million from an equity issue and an additional A$7.7 million from the sale of a 4.5% Over-Riding Royalty (ORR) across EP187, reflecting a proactive approach to funding and operational readiness.
Empire Energy’s forward-looking strategy is evident in its readiness for developmental drilling, slated for August, which will be a pivotal step towards the pilot project’s fruition. With the Beetaloo Basin’s potential as a key player in bridging the projected east coast gas supply shortfall by 2030, Empire Energy’s early moves could set a benchmark in the industry.
The company’s leadership under managing director Alex Underwood and chair Peter Cleary has been instrumental in navigating the company through strategic divestments and capital management, positioning EEG at the forefront of the Beetaloo play’s development. The company’s focus remains on securing all necessary regulatory approvals and finalizing gas sales and financing arrangements in the upcoming months.
The recent capital raise not only underscores Empire Energy’s commitment to its project timelines but also strengthens its financial base against potential market fluctuations and regulatory challenges. With a projected increase in share capital by some 32% following the new issue, EEG looks to maintain its trajectory towards becoming a key player in Australia’s gas market, leveraging a first-mover advantage in the Beetaloo Basin.