Empire Energy Upsizes $7M Share Plan to Accelerate Beetaloo Basin Growth

Successful Capital Raise Amid Strong Demand

Empire Energy Group Limited has announced the completion and upsizing of its Share Purchase Plan (SPP) to $7 million, reflecting robust shareholder support. Originally announced in mid-May, the SPP attracted applications totaling over $7.7 million from 583 eligible shareholders, prompting the company to increase the raise to accommodate demand while managing dilution.

The company applied a scale back to reduce the final amount to $7,000,007, issuing 43,750,041 new shares at $0.16 each; the same price as a recent $28 million placement. This careful balancing act ensured broad shareholder participation while preserving capital structure integrity.

Strategic Funding for Beetaloo Basin Development

The proceeds from the SPP will bolster Empire Energy’s financial position as it advances critical appraisal activities in the Beetaloo Basin, Northern Territory. Key upcoming milestones include the stimulation of the Carpentaria-5H well and securing approvals for the sale of test gas. These steps pave the way for constructing the Carpentaria Gas Plant, a vital infrastructure component for commencing commercial gas sales.

Managing Director Alex Underwood expressed gratitude to shareholders for their support, emphasizing that the strengthened balance sheet; now with a cash position of $40.8 million including the SPP proceeds; positions the company well for these operational objectives.

Shareholder Incentives and Governance

As part of the SPP, investors will receive one free-attaching option for every two new shares issued, subject to shareholder approval at an extraordinary general meeting scheduled for July 2025. These options, exercisable at $0.24 within 24 months, offer additional upside potential for participants.

The company’s allocation policy ensured fairness, granting full allocation up to $2,000 per shareholder and applying a proportional scale back above that threshold. Directors participated under the same terms, and applications from shareholders outside Australia and New Zealand were excluded.

Liquidity and Funding Facilities

Beyond the SPP, Empire Energy retains undrawn facilities totaling $15.2 million from Macquarie Bank, including a $14.6 million R&D facility and a $0.6 million performance bond facility. Additionally, a $30 million midstream infrastructure facility awaits Northern Territory Government approval for test gas sales, potentially unlocking further capital to support development.

This multi-layered funding approach underscores the company’s commitment to advancing its Beetaloo Basin assets while maintaining financial flexibility.