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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Empyrean Energy Plc | LSE:EME | London | Ordinary Share | GB00B09G2351 | ORD 0.2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.025 | -4.35% | 0.55 | 0.45 | 0.65 | 0.49 | 0.49 | 0.49 | 657,094 | 16:35:10 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Oil And Gas Field Expl Svcs | 0 | -20.8M | -0.0211 | -0.23 | 4.83M |
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
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December 22, 2016 02:07 ET (07:07 GMT)
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