Empyrean Energy PLC (LON:EME) is to raise a combined £863,000 to support its exploration and appraisal programme in its three licence areas.
Of the money, £0.56mln will come from a placing at 3.5p, while options being exercised by chief executive Tom Kelly will raise a further £300,000 and increase his stake in the company to 14.9%.
Joint venture partner Sacgasco has taken part in the placing as did shareholder Gaz Bisht (Topaz Energy Pty Ltd) , which has increased its holding to 9.66%. Keyhole Pty also owns 9.7% through the placing.
Following the fund raise, Empyrean's cash position, stands at about US$8.5mln, with the following amounts earmarked for appraisal drilling, testing, 3D seismic and exploration over the coming months: China US$3.2mln for seismic acquisition; Indonesia US$2.65mln for drilling and testing the Mako prospect and US$1.62mln for the US to drill and test the Dempsey prospect.
Tom Kelly said: “We have recently commenced acquisition of 3D seismic data over Block 29/11, offshore China, which is prospective for conventional oil.
We also expect to commence drilling at our 10% owned Mako Project within the highly-prospective Duyung PSC in the Natuna Basin, offshore Indonesia, later this month to establish reservoir quality and conduct a gas flow test on the 430-650 Bcf conventional contingent gas resource.
In addition, we will participate at a 25% working interest in the drilling of the Dempsey Prospect during Q3 2017 targeting up to 1 Tcf in multiple stacked targets of conventional gas in the Sacramento Basin, California.
“A commercial discovery at any of these three new and exciting projects will be transformational."