Empire Energy’s $28M Raise Hinges on Success of Carpentaria-5H Testing
Empire Energy has successfully raised $28 million through a placement and launched a $3 million Share Purchase Plan to fund critical development of its Carpentaria-5H well in the Beetaloo Sub-basin.
- Completed $28 million placement at $0.16 per share with attaching options
- Directors committed additional $250,000 investment
- Funds allocated for hydraulic fracture stimulation and flow testing of Carpentaria-5H well
- Share Purchase Plan launched to raise up to $3 million on same terms as placement
- Planned company name change to Beetaloo Energy Australia Limited to reflect strategic focus
Capital Raise Completed
Empire Energy Limited (ASX: EEG) has successfully completed a $28 million placement, issuing over 173 million new shares at $0.16 each, representing a notable discount to recent trading prices. The placement attracted strong support from existing and new institutional and sophisticated investors, with directors personally committing an additional $250,000. Alongside the placement, Empire launched a Share Purchase Plan (SPP) aiming to raise up to $3 million, offering eligible shareholders the opportunity to participate on the same terms.
Strategic Use of Funds
The capital raised will primarily fund the hydraulic fracture stimulation and flow testing of the Carpentaria-5H well, a key asset in Empire's portfolio. This well, drilled late in 2024, is the longest horizontal well cased and cemented to date in the Beetaloo Sub-basin, stretching over 3,310 metres within the Velkerri Shale. The upcoming stimulation program is expected to be more intensive than previous efforts, employing higher horsepower and greater water and proppant volumes to maximize production potential.
Post-stimulation, flow testing is scheduled to commence in the third quarter of 2025, with plans to tie the well into the Carpentaria Gas Plant for production sales, pending regulatory approvals. Additional funds will support corporate and operational expenses, preparatory works for the gas plant, and general working capital needs.
Investor Incentives and Governance
Participants in the placement will receive attaching unlisted options exercisable at $0.24 each, valid for two years from allotment, providing potential upside if the share price appreciates. The SPP will also offer attaching options on the same terms, with no brokerage fees, encouraging shareholder participation. The company anticipates shareholder approval for the directors’ share issue and the attaching options at an upcoming Annual General Meeting.
A New Identity Reflecting Focus
In a move signaling its strategic direction, Empire Energy plans to change its name to Beetaloo Energy Australia Limited, underscoring its commitment to developing the Beetaloo Sub-basin’s world-class resources. Managing Director Alex Underwood expressed gratitude for the strong investor support and highlighted the critical stage the company is entering with the Carpentaria-5H well’s stimulation and testing phase.
With the capital raise complete and operational milestones ahead, Empire is positioning itself to unlock significant value from its Beetaloo assets, a development closely watched by investors and industry observers alike.
Bottom Line?
Empire’s successful capital raise sets the stage for pivotal testing results that could redefine its trajectory in the Beetaloo Sub-basin.
Questions in the middle?
- Will the hydraulic fracture stimulation deliver the anticipated production rates from Carpentaria-5H?
- How will the market respond to the company’s planned rebranding as Beetaloo Energy Australia Limited?
- What are the potential regulatory hurdles for gas sales from the Carpentaria-5H well?
