Empire Energy Group Ltd Stock Market Press Releases and Company Profile
Empire Secures $65 million Beetaloo Funding Package
Empire Secures $65 million Beetaloo Funding Package

Sydney, Nov 27, 2024 AEST (ABN Newswire) - Empire Energy Group Limited (googlechartASX:EEG) (googlechartEEGUF:OTCMKTS) is pleased to announce it has executed binding term sheets with Macquarie Bank Limited ("Macquarie") for the establishment of new credit facilities totaling A$65 million. Together with existing cash on hand, proceeds from the credit facilities will be applied to Carpentaria-5H ("C-5H") and the Carpentaria Gas Plant and associated infield infrastructure.

- A$30 million R&D Facility will fund exploration, appraisal and development activities including Carpentaria-5H and construction of infield infrastructure representing an upsizing and maturity extension of existing A$2.25 million facility

- A$5 million Performance Bond Facility to meet Empire's Northern Territory environmental bonding obligations

- New A$30 million Midstream Infrastructure Facility to finance refurbishment and construction of the Carpentaria Gas Plant and associated infrastructure

- Empire is currently drilling ahead in the vertical section of the intermediate hole at Carpentaria-5H at a depth of 770 metres MD

- Cash at bank has increased to A$34.8 million following receipt of A$1.3 million from the Australian Taxation Office for September 2024 BAS

Comments from Managing Director Alex Underwood:

"The financing package with Macquarie announced today followed an extensive competitive tender process and provides Empire with the best terms currently available in the debt market. Macquarie has been financing Empire Energy for 15 years.

This financing package, along with existing cash resources, will fund the drilling, completion and flow testing of C-5H and the installation of the Carpentaria Gas Plant and associated in-field infrastructure. This represents a key milestone in Empire's stated goal to move into pilot production from the Beetaloo Basin commencing in 2025 to meet demand for gas in the Northern Territory and, ultimately, Australia's supply constrained East Coast market.

The terms of the financing package demonstrate Macquarie's innovative approach to provision of capital to the upstream oil and gas industry, with significantly reduced dilution of shareholders' interests in the company compared to raising additional equity capital for the Carpentaria Pilot Project."

The A$65 million credit facilities with Macquarie comprise:

- R&D Facility (A$30 million upsized from A$2.25 million existing facility): Facility sized at 80% of the FY2024 and FY2025 estimated tax rebates under the Australian Government's Research and Development ("R&D") Tax Incentive Scheme. The R&D Facility provides Empire with additional liquidity and will allow Empire to better manage its working capital requirements. Funds can be applied to Northern Territory exploration, appraisal and development activities including C-5H and construction of infield infrastructure;

- Performance Bond Facility (A$5 million, same size as existing facility): to meet Empire's Northern Territory environmental bonding obligations through Macquarie bank guarantees in favour of the Northern Territory Government on a non-cash-backed basis; and

- Midstream Infrastructure Facility (A$30 million new facility): proceeds can be applied to the refurbishment and construction of the Carpentaria Pilot Gas Plant. Repayment of the Midstream Infrastructure Facility will be via a tolling fee.

The R&D and Performance Bond Facilities represent a refinancing of Empire's existing credit facility with Macquarie.

Availability under the R&D Facility has been increased from 60% of expected R&D tax rebate under the existing facility to 80% of expected R&D tax rebate while maintaining the same interest margin.

Pricing for the Performance Bond Facility has been reduced from BBSW + 10% to a fixed 10% per annum on issued guarantees.

The other key terms of the credit facilities are included in Appendix A* to this announcement.

Carpentaria-5H Drilling Update

The surface section of the C-5H well has been successfully drilled and cased, effectively isolating the Cambrian Limestone Aquifer. Empire is currently drilling ahead in the vertical section of the intermediate hole at a depth of 770 metres MD at the time of publication of this release.

The well path will soon begin building and turning towards the Middle Velkerri B shale target interval.

After the intermediate section is drilled and cased, Empire will drill and case the horizontal section.

To view Key Terms of the Credit Facility, please visit:
https://abnnewswire.net/lnk/MO7GC8O3


About Empire Energy Group Ltd

Empire Energy (ASX:EEG) (OTCMKTS:EEGUF) is a Sydney based Australian oil and gas company holding 100%-owned and operated assets with unconventional targets in the Northern Territory Beetaloo Sub-basin and central trough of the McArthur Basin.

Empire is an active Beetaloo Sub-basin operator, focused on maturing its assets to production. Following the successful appraisal drilling and flow testing of the Carpentaria-2H and 3H wells in Empire's EP187, Empire is targeting first gas flow in H1 2025 at its Carpentaria Pilot Project. The Pilot has a targeted sales gas rate of up to 25 TJ per day utilising the existing McArthur River Pipeline.

abnnewswire.com 


Contact

Empire Energy Group Ltd
E: info@empiregp.net
T: +61-2-9251-1846
F: +61-2-9251-0244
WWW: www.empireenergygroup.net



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