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Highlights

  • $27.75M raised via share placement at $0.16, a 22% discount to last close
  • Attaching options offered at $0.24 exercise price, expiring two years from allotment
  • Directors commit additional $250,000; Share Purchase Plan to raise up to $3M

Empire Energy Group Ltd (ASX: EEG) has secured $27.75 million in funding through a placement of 173.4 million new shares to institutional and sophisticated investors, priced at $0.16 per share. The discounted placement price represents a 22% markdown from the company's last traded share price on 14 May 2025, and also reflects an 18.8% and 13.2% discount to its 5-day and 15-day VWAPs, respectively.

The capital raise will support hydraulic stimulation and extended production testing of the Carpentaria-5H (C-5H) well, a key asset in the Beetaloo Sub-basin. C-5H, drilled in late 2024, is the longest horizontal well to date in the basin, with a 3,310-metre lateral section targeting the Velkerri B Shale. Hydraulic stimulation is set to begin in June 2025, with 60–70 fracture stages planned and flow testing expected in Q3 2025.

Investors participating in the placement will also receive one unlisted attaching option for every two new shares, exercisable at $0.24 and expiring two years from allotment, pending shareholder approval. Directors of Empire have additionally committed $250,000 to the placement under the same terms, also subject to approval.

The company also announced plans to initiate a Share Purchase Plan (SPP) on 23 May 2025, aiming to raise up to $3 million from eligible retail shareholders in Australia and New Zealand, providing access to shares and attaching options on the same terms as the institutional placement.

Funds raised will be directed toward the C-5H project, operational expenses in the Northern Territory, preparatory work for the Carpentaria Gas Plant, and general working capital. Settlement of the placement is expected on 22 May 2025, with allotment the following day. Subject to shareholder approval, Empire also plans to rebrand as Beetaloo Energy Australia Limited, aligning its identity with its sole operational focus.