Kerman & Co advises AIM-quoted Empyrean Energy PLC
24 May 2017
The Corporate & Capital Markets team of Kerman & Co advised AIM-quoted client Empyrean Energy (AIM: EME), an energy resource exploration and development company, in connection with its recently completed Open Offer to shareholders to raise up to £2.7 million. Shareholders who qualified for the offer were able to subscribe for 1 new ordinary share at a price of 3.5 pence each for every 4 shares held. The Open Offer closed for acceptance on 10 May 2017 and a total of 34,316,551 new ordinary shares were applied for, being approximately 45.3 per cent. of the shares made available, raising gross proceeds of approximately £1.2 million. The Board of Empyrean has authorities in place from shareholders to discuss investment proposals with new investors for the purpose of completing the raise to the target amount.
The funds will be used to facilitate the purchase by Empyrean of a stake of up to 20 per cent. in West Natuna Exploration (“WNE”) from Conrad Petroleum Pte (“Conrad”) for a total cash consideration of US$4 million. Conrad is the registered and beneficial owner of WNE, which holds a 100 per cent. participating interest in the highly prospective Duyung Production Sharing Contract in Indonesia. The Duyung PSC is an offshore permit of over 1,100 km2 in the West Natuna Basin and is located in water depths of 60110 metres and close to existing pipeline infrastructure owned by the Indonesian Government. The Duyung PSC includes the Mako shallow gas discovery which, according to the competent person’s report prepared in conjunction with that project, is estimated to contain 400 Bcf to 1.3 Tcf of gas in place.
Simon Holden and Jack Kemmish, members of the Corporate & Capital Markets team, advised Empyrean.
Simon Holden, Partner, commented: “This transaction follows up on last year’s efforts where Empyrean sold its Sugarloaf AMI Project for US$66 million, returning approximately £17.5 million to shareholders. There are not many companies quoted on the junior market which get to return value to shareholders, and then continue to seek additional upside for them. Empyrean in this regard sets itself apart from most of its peers, and we are grateful to have the opportunity to advise them along the way. Within a short period of time, Empyrean has proven its ability to identify, analyse, negotiate and fund excellent projects with an appropriate mix of risk versus reward.”