Duyung PSC Update

RNS Number : 0310F

Empyrean Energy PLC

12 May 2017

 

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

12 May 2017

Empyrean Energy PLC ('Empyrean' or 'the Company')

Duyung PSC Update

·     Shareholders Agreement completed and signed and Initial Consideration of US$2m remitted

·     Empyrean now holds 10 per cent. Interest in Duyung PSC, Indonesia

·     Extension agreed on payment of Further Consideration until 26 May 2017

As previously announced on 4 April 2017, Empyrean has entered into a sale and purchase agreement for the acquisition (the "Acquisition") of up to a 20 per cent. interest in West Natuna Exploration Ltd ("WNEL") from Conrad Petroleum Pte Ltd ("Conrad"). Conrad is the registered and beneficial owner of WNEL, which holds a 100 per cent. participating interest in the highly prospective Duyung Production Sharing Contract ("Duyung PSC") in Indonesia. The Duyung PSC includes the 'Mako' shallow gas discovery with a Competent Persons Report verifying 2C and 3C resource of 430-650 Bcf recoverable gas.  It is planned that the Mako South-1 well will be drilled in late Q2 / early Q3 to undertake flow test and establish reservoir quality.

Under the terms of the Acquisition, the Company agreed to pay Conrad an initial cash consideration of US$2 million (the "Initial Consideration") to acquire an initial 10 per cent. interest in WNEL immediately upon signing of a shareholders' agreement (the "Shareholder Agreement") to be negotiated and agreed between the Company and Conrad before completion of the Acquisition and, conditional on completion, to pay a further US$2 million (the "Further Consideration") in order to acquire an additional 10 per cent. interest in WNEL on or before 12 May 2017.

The Company is pleased to confirm that it has now finalised and executed the Shareholder Agreement with Conrad and has remitted the Initial Consideration to Conrad. Accordingly, Empyrean currently is entitled to a 10% interest in WNEL that will be delivered at completion.

In addition, Empyrean and Conrad have agreed an amendment to the terms of the Acquisition, which extends the long-stop date for payment of the Further Consideration to 26 May 2017. This will also be the completion date.

As previously stated, the Board proposes to use its reasonable endeavours to place those shares not taken up pursuant to the recently-closed Open Offer, amounting to 43,141,912 ordinary shares of 0.2p each ("Ordinary Shares"), at not less than the 3.5p per Ordinary Share, in order to raise up to the maximum proceeds under the Open Offer.

Shareholders should note that there is no guarantee that further funding will be available in order to allow the Company to satisfy the Further Consideration and acquire the additional 10 per cent. interest in WNEL.

Further announcements will be made in this regard in due course.

**ENDS**

Empyrean Energy plc
Tom Kelly	Tel: [phone]
Cenkos Securities plc
Neil McDonald	Tel: [phone]
Beth McKiernan	Tel: [phone]
Nick Tulloch	Tel: [phone]
St Brides Partners Ltd
Elisabeth Cowell	Tel: [phone]
Lottie Brocklehurst	Tel: [phone]

 

END

 

 

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