Empyrean Energy PLC Receipt of USD2.6M and Update on Offshore Project (6046X)
February 23 2017 - 1:00AM
UK Regulatory
TIDMEME
RNS Number : 6046X
Empyrean Energy PLC
23 February 2017
This announcement contains inside information
Empyrean Energy Plc / Index: AIM / Epic: EME / Sector: Oil &
Gas
23 February 2017
Empyrean Energy PLC ('Empyrean' or 'the Company')
Receipt of further US$2.6 million for Sugarloaf AMI
and update on Pearl River Mouth Basin Project Offshore China
Empyrean, the oil and gas company, is pleased to announce the
receipt of the second and final tranche of amounts held in escrow
following the sale of its 3% working interest in the Marathon Oil
operated Sugarloaf AMI in Texas to Carrier ('Carrier') for a
purchase price of US$61,500,000. Accordingly, the Company has
received an amount of US$2.614m which comprises (as previously
announced) 50 per cent. of the US$6.15m held in escrow upon
completion of the transaction (being 10 per cent. of the initial
consideration paid by Carrier), less withholding tax of 15 per
cent. (US$0.461m) payable to the United States International
Revenue Service ('IRS').
In addition, negotiations with international and domestic
contractors for the acquisition of 3D seismic for the Company's
recently acquired 1,800 km(2) offshore China conventional Pearl
River Mouth Basin Project (the 'Project') are progressing well.
Empyrean hopes to finalise negotiations over the coming weeks with
a view to commencing the programme in Q2 2017. The seismic
programme is targeted to be over an area of 500km(2) and will be
utilised to identify potential drill targets on the two key
exploration prospects, Jade and Topaz. The Project, approximately
200km South East from Hong Kong, is directly South of a large
producing field and importantly contains a further ten leads which
have been mapped and that will require follow up exploration
work.
Empyrean CEO Tom Kelly said, "The funds received from the sale
of our interest in the Sugarloaf AMI have bolstered our cash
position and will be utilised to fund further exploration
activities in the Pearl River Mouth Basin Project. We believe the
permit is highly prospective and has the potential to host a major
offshore conventional oil discovery in a prospective and attractive
address. Our negotiations with regards to our seismic programme are
drawing to a close and we are looking to rapidly quantify a
resource through exploration activities to build value for the
Company."
**ENDS**
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
Cowell 1177
Lottie Brocklehurst Tel: +44 (0) 20 7236
1177
This information is provided by RNS
The company news service from the London Stock Exchange
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