TIDMEME
RNS Number : 5799S
Empyrean Energy PLC
22 December 2016
Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil &
Gas
22 December 2016
Empyrean Energy PLC ('Empyrean' or 'the Company')
Interim Results
Empyrean, the oil and gas company, is pleased to provide its
Interim Report for the six months ended 30 September 2016.
Highlights
-- Key event during the period was the successful application
for Withholding Tax Certificate filed and accepted by the Internal
Revenue Service in the US allowing the Company to offset its
existing US tax losses and pay anticipated US tax obligations on
amounts already received from sale of the Sugarloaf AMI Project
o Withholding Tax Certificate also stipulated that future
receipts from the sale are to have 15% withholding tax applied
o The second tranche of the escrowed funds, which is due for
release on or about 19 February 2017, being one year after closing
of the transaction on 19 February 2016, of US$3.075m is expected to
be subject to withholding tax of 15 per cent. and may be subject to
further adjustments
-- Shareholder and Court approval was gained for the
implementation of a 7.9p return of capital to shareholders that was
completed post period-end
-- Award of a permit for 100% of the exploration rights for
Block 29/11, located in the Pearl River Mouth Basin, offshore China
in December 2016, following a successful application to the China
National Offshore Oil Corporation
o Significant resource potential and located on trend to
significant oil and gas assets offshore China
o Empyrean will acquire and complete processing and technical
evaluation of 500 km2 of 3D seismic data over the next 24 months or
sooner if possible
-- The Company expects Block 29/11 to become the Company's
primary focus in order to re-position the Company for growth and
will look to farm-out or sell its remaining US assets.
For further information please visit www.empyreanenergy.com or
contact the following:
Empyrean Energy plc
Tom Kelly Tel: +61 8 9481 0389
Cenkos Securities plc
Neil McDonald Tel: +44 (0) 131 220 9771
Beth McKiernan Tel: +44 (0) 131 220 9778
Nick Tulloch Tel: +44 (0) 131 220 9772
St Brides Partners Ltd
Elisabeth Tel: +44 (0) 20 7236 1177
Cowell
Lottie Brocklehurst Tel: +44 (0) 20 7236 1177
Chairman's Statement
2016 marked a new era for Empyrean. With the sale of our core
Sugarloaf asset completed in February, our activities during the
period under review were largely focused on post-completion
refinancing and restructuring necessary to enable the Company to
deliver on our promise to return value to shareholders. We also
successfully invested our time into evaluating new projects, which
culminated in December 2016 in our entry into an exciting new oil
and gas prospect post period end. We look ahead to 2017 with an
exciting new project in tow having been granted the exploration
rights for Block 29/11, which is located offshore China in the
Pearl River Mouth Basin. Given its significant resource potential,
and its location on trend to world class oil and gas projects, to
have been granted this licence represents a real coup for Empyrean
and offers us the opportunity to add real value, subject to the
usual risks involved in resource exploration, using our current
cash resources. We look forward to providing further updates as we
move forward with this project in 2017.
Block 29/11
Block 29/11 (the 'Permit') covers approximately 1,800km2, around
200km southeast of Hong Kong. Two prospects, Jade and Topaz, and
multiple leads have been identified via vintage 2D seismic. We will
acquire some of the vintage data and plan to acquire new 3D seismic
data in order to progress these prospects and leads towards drill
ready status. Once the 3D seismic has been acquired and processed,
Empyrean has the option to enter into a pre-negotiated Production
Sharing Contract ('PSC') for the Block.
The Permit lies close to a producing field and on trend with
recent discoveries, thus enhancing the suggestion that the block
may offer significant prospective resource potential. Topaz Energy
introduced the opportunity to Empyrean and its principal, Mr Gaz
Bisht, will work alongside the Company to implement the work
programme. In return, the Company has agreed that Topaz will
receive approximately GBP1.4m in cash or 70m EME shares at c.2p.
This arrangement is subject to binding documentation being put in
place and the issue of these shares will be subject to shareholder
approval at an Extraordinary General Meeting (the 'EGM').
Option Variation
Empyrean also announced on 15 December 2016 that it has amended
the terms of 60m options that had been acquired by a third party
from (former lender) Macquarie Bank. The option exercise prices
have been reworked as per the terms of the options to reflect the
recent cash distribution to shareholders and now range from 0.1p -
4.1p/share. There will also be a resolution relating to a tranche
of these options at the EGM if the Optionholder has not already
exercised them.
Return of Value
In February 2016, we were delighted to successfully complete the
sale of the Sugarloaf AMI Project located onshore Texas for up to
US$71.5 million. Subsequently, when the first tranche of funds held
in escrow was released, the Board declared an intention to retain
only the funds needed to meet working capital requirements and the
maintenance and development of the remaining assets.
On 3 October 2016 we announced the plans for a return of value,
having repaid the Macquarie Bank loan facility and the Company
having met its US tax obligations to date. The Company returned
7.9p for each ordinary share held at 5pm on 19 October 2016 after
shareholder and court approval, in the week commencing 14 November
2016.
The process involved the issuing of one "B" share of 7.9p for
each ordinary share held, followed by the Company cancelling the
"B" shares in return for a capital payment of 7.9p for each share
cancelled. Shareholder approval was given at a General Meeting on
19 October 2016 and court hearings on 27 October 2016 approved the
plans. Shareholders received the capital repayment in the week of
14 November 2016.
Financial Review
Our cash at the end of the period was bolstered significantly by
the sale of Sugarloaf AMI and was reported as US$27,053,000.
Outlook
With a new project in hand, we have a highly active period
ahead. I hope shareholders share in our excitement for this
opportunity, which sits in a prospective address and has
substantial resource potential. In respect of our US assets, we
intend to evaluate divestment opportunities and will engage with
the market regarding our efforts here at the appropriate time.
Patrick Cross
Non-Executive Chairman
21 December 2016
Operational Review
Until the sale of its 3% working interest ('WI'), Empyrean's
operational activities had been almost solely focused on
development drilling in the Sugarloaf AMI Project. The sale of its
WI in the Sugarloaf AMI Project to Carrier Energy Partners 11, LLC
('CEPII') completed on 22 February 2016 with the transaction having
an effective date of 1 October 2015.
Empyrean retains an interest in the Riverbend Project (10 % WI)
located in the Tyler and Jasper counties, onshore Texas and a
58.084% WI in the Eagle Oil Pool Development Project, located in
the prolific San Joaquin Basin onshore, southern California and
operated by Strata-X Energy.
Riverbend Project (10%)
The Cartwright No1 re-entry well produces gas and condensate
from the arenaceous Wilcox Formation.
Production commenced on 13 May 2013, and well head rates rapidly
decreased to a monthly production in June 2014 of 2,687 msc.ft of
gas and 83 barrels of condensate. Thereafter Cartwright No1
re-entry has been shut in intermittently. The well is now virtually
suspended producing only nominal amounts of gas condensate. In the
last 6 months only 794 msc.ft of gas has been produced with
virtually no condensate. Full production will recommence once the
economic environment improves.
Eagle Oil Pool Development Project (58.084% WI)
Located in the prolific San Joaquin Basin onshore, southern
California this development project has received little attention
in the last 6 months due again to the economic climate.
No appraisal operations were carried out during this period. It
is anticipated that a vertical well test of the primary objective,
the Gatchell sands, followed by a horizontal appraisal well, would
be the most likely scenario.
Definitions
MMBOE Million barrels of oil equivalent
Production Production available for sale
WTI West Texas intermediate crude, type of oil used as a
benchmark in oil pricing
Frank Brophy BSc (Hons)
Technical Director
21 December 2016
Statement of Comprehensive Income
For the Period Ended 30 September 2016
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2016 (unaudited) 2015 (unaudited) 2016
(audited)
Notes US$'000 US$'000 US$'000
Revenue 1 21 10
------------------ ------------------ -----------
Cost of sales
Operating costs 2 (1) (28)
Impairment of oil and 4,
gas properties 5 (3) (2) (6)
Amortisation 5 (6) (5) (12)
------------------ ------------------ -----------
Total cost of sales (7) (8) (46)
Gross (loss)/profit (6) 13 (36)
Administrative expenditure
Administrative expenses (110) (109) (289)
Directors' remuneration (443) (378) (577)
Compliance fees (162) (195) (518)
Foreign exchange differences (1,777) (5) 243
Total administrative
expenditure (2,492) (687) (1,141)
Operating (loss)/profit (2,498) (674) (1,177)
Finance income/(expense) 60 (1,132) (3,836)
------------------ ------------------ -----------
(Loss)/profit from continuing
operations before taxation (2,438) (1,806) (5,013)
Deferred tax credit/(tax
expense) 709 - (709)
------------------ ------------------ -----------
(Loss)/profit from continuing
operations after taxation (1,729) (1,806) (5,722)
------------------ ------------------ -----------
Profit on discontinued
operations net of tax - 3,636 6,635
------------------ ------------------ -----------
(Loss)/profit after
taxation (1,729) 1,830 913
Total comprehensive
(loss)/profit for the
year (1,729) 1,830 913
================== ================== ===========
Attributable to:
Equity shareholders
of the Company (1,729) 1,830 913
Earnings per share from
continuing operations
(expressed in cents)
- Basic 2 (1.70)c (0.81)c (2.58)c
- Diluted (1.70)c (0.76)c (2.58)c
Earnings per share from
discontinued operations
(expressed in cents)
- Basic 2 - 1.64c 2.99c
- Diluted - 1.54c 2.99c
Statement of Financial Position
As at 30 September 2016
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2016 (unaudited) 2015 (unaudited) 2016
(audited)
Notes US$'000 US$'000 US$'000
Assets
Non-current assets
Derivative financial
asset 3 623 - 371
Oil and gas properties:
exploration and evaluation 4 6,859 11,689 6,842
Oil and gas properties:
development and production 5 152 54,813 156
------------------ ------------------ -----------
Total non-current assets 7,634 66,502 7,369
Current assets
Trade and other receivables 3,271 1,457 17,055
Cash and cash equivalents 27,053 73 17,473
------------------ ------------------ -----------
Total current assets 30,324 1,530 34,528
Liabilities
Current liabilities
Trade and other payables 520 7,810 648
Provisions 9 88 42
Provision for corporation
tax 1,302 - 2,848
Borrowings - 3,433 -
Derivative financial
liabilities 401 359 195
Total current liabilities 2,232 11,690 3,733
Net current assets /
(liabilities) 28,092 (10,160) 30,795
Non-current liabilities
Provisions - 417 -
Provision for corporation
tax 750 - 750
Borrowings - 15,398 -
Deferred tax liability - 3,375 709
Total non-current liabilities 750 19,190 1,459
Net assets 34,976 37,152 36,705
================== ================== ===========
Shareholders' equity
Share capital 6 710 710 710
Share premium 40,250 40,250 40,250
Share based payment
reserve 2,357 2,476 2,946
Retained losses (8,341) (6,284) (7,201)
------------------ ------------------ -----------
Total equity 34,976 37,152 36,705
================== ================== ===========
Statement of Cash Flows
For the Period Ended 30 September 2016
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2016 (unaudited) 2015 (unaudited) 2016
(audited)
Notes US$'000 US$'000 US$'000
Cash generated from
operating activities
- continuing operations (795) (825) (1,253)
Cash generated from
operating activities
- discontinued operations (116) 5,634 6,804
Payment corporation (1,545) - -
tax
------------------ ------------------ -----------
Net cash inflow from
operating activities (2,456) 4,809 5,551
Net proceeds from disposal
of discontinued operations - - 60,474
Amounts held in escrow 13,800 - (16,875)
Purchase of oil and
gas properties : exploration (17) - -
and evaluation - continuing
operations
Purchase of oil and
gas properties : exploration
and evaluation - discontinued
operations - (1,807) (3,212)
Purchase of oil and
gas properties: development - (21) -
and production - continuing
operations
Purchase of oil and
gas properties: development
and production - discontinued
operations - (3,920) (8,909)
------------------ ------------------ -----------
Net cash inflow / (outflow)
for investing activities 13,783 (5,748) 31,478
Issue of ordinary share - - -
capital
Proceeds from borrowings - - 3,038
Proceeds from hedging - - 1,582
Repayment of borrowings - (2,000) (25,435)
Finance income received/(expenses
paid) 19 (943) (2,944)
------------------ ------------------ -----------
Net cash inflow / (outflow)
from financing activities 19 (2,943) (23,759)
Net increase/(decrease)
in cash and cash equivalents 11,346 (3,882) 13,270
Cash and cash equivalents
at the start of the
year 17,473 3,955 3,955
Forex on cash held (1,766) - 248
------------------ ------------------ -----------
Cash and cash equivalents
at the end of the year 27,053 73 17,473
================== ================== ===========
Statement of Changes in Equity
For the Year Period 30 September 2016
Share Share Share Cashflow Retained Total
capital premium based hedge losses equity
reserve payment reserve
reserve
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31
March 2015 710 40,250 2,946 - (8,114) 35,792
========= ========= ========= ========= ========= ========
Hedge transactions - - - (470) - (470)
Profit after
tax for the year - - - - 1,830 1,830
Total comprehensive
income for the
year - - - - 1,830 1,830
Balance at 30
September 2015 710 40,250 2,946 (470) (6,284) 37,152
========= ========= ========= ========= ========= ========
Balance at 31
March 2015 710 40,250 2,946 - (8,114) 35,792
Profit after
tax for the year - - - - 913 913
Total comprehensive
loss for the
year - - - - 913 913
Balance at 31
March 2016 710 40,250 2,946 - (7,201) 36,705
========= ========= ========= ========= ========= ========
Reversal of prior
period equity-settled
share-based payments - - (589) - 589 -
Loss after tax
for the period - - - - (1,729) (1,729)
--------- --------- --------- --------- --------- --------
Total comprehensive
loss for the
period - - - - (1,729) (1,729)
Balance at 30
September 2016 710 40,250 2,357 - (8,341) 34,976
========= ========= ========= ========= ========= ========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Statement of Accounting Policies
For the Period Ended 30 September 2016
Basis of preparation
The Company's financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union and Companies Act 2006.
The principal accounting policies are summarised below. The
financial report is presented in the functional currency, US
dollars and all values are shown in thousands of US dollars
(US$'000). The financial statements have been prepared on a
historical cost basis and fair value for certain assets and
liabilities. These condensed interim financial statements of the
Group for the six months ended 30 September 2016 have been prepared
in accordance with International Financial Reporting Standards as
adopted by the European Union (IFRSs) and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS.
The same accounting policies, presentation and methods of
computation are followed in these financial statements as were
applied in the Group's latest audited financial statements for the
year ended 31 March 2016.
The financial information for the period ended 30 September 2016
does not constitute the full statutory accounts for that period.
They have not been audited by the Group's auditor. The Annual
Report and Financial statements for the year ended 31 March 2016
have been filed with the Registrar of Companies. The independent
auditor's report on the Annual Report and Financial statements was
unqualified, did not draw attention to any matters by way of
emphasis, and did not contain a statement under Section 498(2) or
498(3) of the Companies Act 2006.
Going concern
The Directors consider that the Company has adequate resources
to continue in operational existence for the foreseeable future and
that it is therefore appropriate to adopt the going concern basis
in preparing its financial statements. The Company had a cash
balance of US$27.053m at 30 September 2016 (US$17.473m: 31 March
2016).
Notes to the Financial Statements
For the Period Ended 30 September 2016
1. Segmental analysis
The primary segmental reporting format is determined to be the
geographical segment according to the location of the asset. The
Directors consider the Company to have the business segment of
exploration for, development and production of oil and gas
properties. There is one geographical trading segment being North
America which is involved in the exploration for, development and
production of oil and gas properties. The Company's registered
office is located in the United Kingdom.
Details Oil and Gas Properties: Oil and Gas Properties: Total
Exploration and Evaluation Development and Production
30 Sep 30 Sep 31 Mar 16 30 Sep 30 Sep 31 Mar 16 30 Sep 16 30 Sep 31 Mar
16 15 16 15 15 16
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Revenue from continued
operations - - - 1 21 10 1 21 10
Revenue from
discontinued
operations - - - - 6,011 6,205 - 6,011 6,205
Profit/(loss) on sale
of discontinued
operations - - 246 - - 1,329 - - 1,575
Cost of sales of
continued operations (3) (2) (6) (4) (7) (40) (7) (9) (46)
Cost of sales of
discontinued
operations - (18) (141) - (2,358) (780) - (2,376) (921)
Tax expense on
discontinued
operations - - (18) - - (205) - - (223)
-------- -------- ------------ -------- -------- ------------ ---------- -------- --------
Segment result (3) (20) 81 (3) 3,667 6,519 (6) 3,647 6,600
Unallocated corporate
expenses (2,492) (685) (1,142)
---------- -------- --------
Operating
(loss)/profit (2,498) 2,962 5,458
Finance income and
expense 60 (1,132) (3,836)
---------- -------- --------
(Loss)/profit before
taxation (2,438) 1,830 1,622
Deferred tax
revenue/(tax expense) 709 - (709)
---------- -------- --------
(Loss)/profit after
taxation (1,729) 1,830 913
---------- -------- --------
Total comprehensive
profit/(loss) for the
financial year (1,729) 1,830 913
========== ======== ========
Segment assets 7,020 11,850 7,003 3,850 56,084 17,407 10,870 67,934 24,410
Unallocated corporate
assets 27,088 98 17,487
---------- -------- --------
Total assets 37,958 68,032 41,897
========== ======== ========
Segment liabilities 133 3,418 130 188 4,114 303 321 7,532 433
Unallocated corporate
liabilities 3,373 23,348 4,759
---------- -------- --------
Total liabilities 3,694 30,880 5,192
========== ======== ========
6 months 6 months Year ended
to 30 to 30 September 31 March
September 2015 (unaudited) 2016
2016
(unaudited) (audited)
2. Earnings per share
The basic earnings per share is derived by dividing
the profit/(loss) after taxation for the year
attributable to ordinary shareholders by the
weighted average number of shares in issue being
221,833,853 (2015: 221,833,853).
Earnings per share from
continuing operations
(Loss)/profit after
taxation from continuing (US$1,729,000) (US$1,806,000) (US$5,722,000)
operations
(Loss)/earnings per
share - basic (0.78)c (0.81)c (2.58)c
(Loss)/profit after
taxation from continuing (US$1,729,000) (US$1,806,000) (US$5,722,000)
operations adjusted
for dilutive effects
(Loss)/earnings per
share - diluted (0.78)c (0.76)c (2.58)c
Earnings per share from
discontinued operations
(Loss)/profit after
taxation from discontinued - US$3,636,000 US$6,635,000
operations
(Loss)/earnings per
share - basic - 1.64c 2.99c
(Loss)/profit after
taxation from discontinued - US$3,636,000 US$6,635,000
operations adjusted
for dilutive effects
(Loss)/earnings per
share - diluted - 1.54c 2.99c
For the current financial year, the average
price of the Company's shares has been lower
than the exercise price of the options and warrants
in issue and therefore the exercise of such
instruments would be anti-dilutive. As such
the diluted earnings per share is the same as
the basic loss per share. In the prior year,
these options and warrants were dilutive and
the weighted average number of dilutive shares
were 281,396,593. Details of the potentially
issuable shares that could dilute earnings per
share in future periods is set out in Note 6.
6 months 6 months Year ended
to 30 to 30 September 31 March
September 2015 (unaudited) 2016
2016
(unaudited) (audited)
3. Derivative financial
asset
Derivative associated
with sale of Sugarloaf
AMI:
Balance brought forward 371 - -
Additions - - 139
Revaluation of derivative
financial asset 252 - 232
623 - 371
================= ================== =================
Derivative financial assets consist of the fair
value of contingent consideration amounts attached
to the sale of Sugarloaf AMI during the prior
year. The fair value of the options was initially
measured at the effective date of the sale,
being 19 February 2016 and were subsequently
remeasured at 31 March 2016 and 30 September
2016. The fair value is measured using a Black
Average (Asian) Model with the following inputs:
Fair value assumptions At 30 At 19 At 31
September February March
2016 2016 2016
Spot price US$48.24 US$29.64 US$38.34
Expected volatility 720-day 720-day 720-day
historical historical historical
Risk-free interest rate 0.415% 0.385% 0.385%
to 0.579% to 0.538% to 0.538%
6 months 6 months Year
to 30 to 30 ended
September September 31 March
2016 2015 (unaudited) 2016
(unaudited)
(audited)
4. Oil and gas properties:
exploration and evaluation
Balance brought forward 6,842 11,132 11,132
Additions 20 3,092 3,067
Reclassified to oil and
gas properties: development
and production (Note 5) - (2,526) (2,526)
Impairment (3) (9) (47)
Discontinued operations - - (4,784)
Net book value 6,859 11,689 6,842
============= ================== ============
5. Oil and gas properties:
development and production
Balance brought forward 156 47,788 47,788
Additions 2 6,243 6,263
Reclassified from oil
and gas properties: exploration
and evaluation (Note 4) - 2,526 2,526
Movement in Oil and gas
decommissioning asset - (60) (469)
Impairment - -
Amortisation (6) (1,684) (1,698)
Discontinued operations - - (54,254)
------------- ------------------ ---------------
Net book value 152 54,813 156
============= ================== ===============
6. Called up share capital
Issued and fully paid
221,833,853 (2015: 221,833,853) US$710 US$710 US$710
ordinary shares of 0.2p
each
Opening balance 710 710 710
Closing balance 710 710 710
======= ======= =======
The Companies Act 2006 (as amended) abolishes
the requirement for a company to have an authorised
share capital. Therefore the Company has taken
advantage of these provisions and has an unlimited
authorised share capital.
Share options and warrants
The following equity instruments have been issued
by the Company and have not been exercised at
30 September 2016:
Option Class Financier options Financier options Financier options Financier options(2)
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Grant Date 19 July 2012 19 July 2012 25 March 2013 27 July 2015
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Options / warrants held 31 March
2015 15,000,000 15,000,000 15,000,000 -
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Options / warrants granted during
year - - - 15,000,000
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Options / warrants held 31 March
2016 15,000,000 15,000,000 15,000,000 15,000,000
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Exercise price (GBP) GBP0.08 GBP0.10 GBP0.12 GBP0.10
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Expiry date 19 July 2017 19 July 2017 25 March 2018 26 July 2019
----------------------------------- ------------------ ------------------ ------------------ ---------------------
Value per security GBP0.018(1) GBP0.014(1) GBP0.016(1) GBP0.018(1)
----------------------------------- ------------------ ------------------ ------------------ ---------------------
(1) The value of these options is being expensed
over a period of 4 years.
The options outstanding at 31 March 2016 had
a weighted average remaining contractual life
of 0.47 years and a weighted average exercise
price of GBP0.095.
(2) These options have been excluded from the
weighted average remaining contractual life
calculation above as they do not fall under
the scope of IFRS 2.
7. Events after the reporting
date
There were no significant events post reporting
date other than the following:
On 3 October 2016 the Company announced that
it proposed to return 7.9 pence to Shareholders
in respect of each Ordinary Share held. At the
General Meeting held on 19 October 2016 the
shareholders passed the resolution to approve
the return of value.
On 18 October 2016 the Company announced that
it had been informed by Macquarie Bank Limited
of the sale of its interest in options in respect
of 60,000,000 ordinary shares of 0.2p each in
the Company, to a third party (the 'Optionholder')
not connected with the Company. On 15 December
2016 the Company announced that it had reached
an agreement with the Optionholder on terms
to vary the exercise price of the Options in
order to reflect the amount of the Capital Return,
being 7.9p that the Company implemented in November
2016. All other terms of the Options, including
expiry dates, will remain unchanged other than
as set out below in relation to the 15,000,000
options with a new exercise price of 0.1p. The
new exercise price of the Options is proposed
to be as follows:
Number of Options Exercise Price Expiry Date
15,000,000 0.1 pence 19(th) July 2017
15,000,000 2.1 pence 19(th) July 2017
15,000,000 4.1 pence 25(th) March 2018
15,000,000 2.1 pence 26(th) July 2019
In relation to the 15,000,000 Options which
it is proposed will be exercisable at 0.1p,
the Company is required to seek shareholder
approval to effect this variation as the new
exercise price of 0.1p is below the nominal
value of shares in the Company of 0.2p. The
Company therefore intends to seek shareholder
approval to capitalise the difference between
the nominal value and the new exercise price
(GBP15,000) from reserves. The Optionholder
is unable to exercise this tranche of Options
on the revised terms in advance of shareholder
approval being granted or in the event that
shareholders do not approve the required capitalisation
from reserves. In order to satisfy the Optionholder
in this regard, the Company has agreed that,
if the Optionholder wishes to exercise this
tranche of Options prior to shareholder approval
being granted for the capitalisation from reserves
or should shareholder approval not be given,
then this tranche of Options will convert at
0.2p into a greater number of 18,000,000 Ordinary
Shares.
On 9 November 2016 the Company announced that
the High Court of Justice in England and Wales
had made an order approving the reduction of
capital indicating that the return of value
was effective as of 9 November 2016.
On 15 December 2016 the Company announced that
it had been awarded a permit for 100% of the
exploration rights for Block 29/11, located
in the Pearl River Mouth Basin, offshore China,
following a successful application to the China
National Offshore Oil Corporation and that the
Company would be the operator of the permit
during the exploration phase of the permit.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LIFIDFVLFFIR
(END) Dow Jones Newswires
December 22, 2016 02:07 ET (07:07 GMT)
Empyrean Energy (LSE:EME)
Historical Stock Chart
From Apr 2024 to May 2024
Empyrean Energy (LSE:EME)
Historical Stock Chart
From May 2023 to May 2024