Empire Energy Ltd., Sydney, has agreed to acquire Pangaea Resources Pty Ltd.’s interests in Beetaloo basin onshore Northern Territory of Australia for $5 million (Aus.) in cash and 140 million Empire shares. Pangaea also will be issued 8 million unlisted Empire options at an exercise price of $0.70/share (Aus.).
Empire will acquire an operated 82.5% interest in five permits (EPs 167, 168, 169, 198, 305) within the Beetaloo, opposite Empire’s existing 100%-owned permits in the basin.
With the deal, Empire’s best estimate of prospective resources has more than doubled to 41 trillion cubic foot of natural gas equivalent (tcfe), comprising 37 tcf of gas and 657 million bbl of liquids. The company’s 2C contingent resources will increase by more than 350%, comprising 171 bcf of gas and 2.9 million bbl of liquids.
Pangaea and its partner, EMG of Texas, have spent $110 million (Aus.) in the permits, drilling one exploration and four appraisal wells plus two stratigraphic holes. The acquisition gives Empire access to 1,800 km of 2D seismic data, an airborne survey of more than 29,000 km, and core sample data analysis of more than 3,500 m.
Pangaea’s permits overlap the Amadeus gas pipeline which, in addition to the McArthur River Mine gas pipeline that crosses its own 100%-owned EP 187, provides Empire with multiple pathways to market.
The acquisition is subject to Empire shareholder and Northern Territory government approvals. Completion is expected in June.
