Empyrean Energy Share Discussion Threads

[lazarus2010] 16/12/2021 13:31

Begorrah, are you buying back in?

[wcj] 16/12/2021 13:30

Nice to see buys exceeding sells. Kind of the MMs to buy our shares at around 6.8 and sell them back to us at around 6.3. But they are generous people and it is Christmas.

[blakieboy7] 16/12/2021 13:30

Laz, glad the cyber fraud isn't delaying proceedings!! That's the key thing for now

[blakieboy7] 16/12/2021 13:29

I wonder if Morrison is still looking in on this bb? He said the drill would never happen!!

[j284] 16/12/2021 13:29

That's what we've been waiting for, excellent. Well done TK. Now for the drill and hopefully Duyung news. Hoping 2022 is going to be a fantastic year.

[lazarus2010] 16/12/2021 13:28

well now we have the news, Jade fully funded.

Blakie, the rns tells you what happened, cyber fraud...I have worked for a few companies which have sent out emails after their suppliers' accounts were hacked and payments were made into the wrong accounts. Judging by the fact that the rns say the fraudulent account has been frozen, it sounds like it's the same sort of scam.

Must say I'm rather surprised, shocked and disappointed at the market / investors' reactions to the rns. Anybody buying in surely knew there was either going to be direct dilution due to a placement, future dilution based on a convertible loan or dilution due to a JV partner buying in for a sizeable chunk of Jade and receiving new shares. It seems as if investors who are selling somehow thought we are going to raise funds at a premium to the share price (technically the convertible loan note is at a premium of c. 10% to share price prior to announcement, so average share issue price would be c. 7p...so where's the bad news?)

[rafboy] 16/12/2021 13:28

Good news as we now know it’s going to happen for sure.

[bad gateway] 16/12/2021 13:25

Good to have the "funded" news. Wonder how many of us have been quietly waiting?

[jemjem] 16/12/2021 13:24

Complete over reaction to the downside. This is great news. The deposit money will sort itself out and we still have enough to drill anyway.
We're going drilling :-)) And Duyung news anytime now is worth the market cap anyway.
Imo

[go_baby_go] 16/12/2021 13:23

Finally funded. Now let move up into double digits.

[sparrow9] 16/12/2021 13:21

At least he's got the money to carry on
Well done he knows he’s on a winner

[currypasty] 16/12/2021 13:21

are we still drilling before end of month after not actually paying deposit?

[bengal1] 16/12/2021 13:18

16 December 2021

Empyrean Energy PLC ("Empyrean" or the "Company")

Empyrean raises GBP7.623 million (US$10.14m) to fully fund Jade prospect drilling

Empyrean Energy plc ("Empyrean" or the "Company"), the oil and gas development company with interests in China, Indonesia and the United States, advises that it has secured funding totalling GBP7.623 million through an equity placing and convertible loan note issue, the proceeds of which will complete the Company's funding requirements (on a dry hole basis) for the drilling of the Jade prospect at the Company's 100% owned Block 29/11 permit, offshore China, which is scheduled to be drilled in late December 2021.

Pursuant to an equity placing, the Company has issued 60,383,334 new ordinary shares in the Company (the "New Ordinary Shares") at a price of 6.0p per New Ordinary Share (the "Placing Price") to raise GBP3.623 million (before costs) (the "Placing"). The Placing is being completed under the Company's existing authorities and is not subject to the approval of shareholders.

In conjunction with the Placing, the Company has entered into a Convertible Loan Note Agreement with a Melbourne-based investment fund (the "Lender"), pursuant to which the Company has issued a convertible loan note to the Lender and has received gross proceeds of GBP4.0 million (the "Convertible Note"). The Convertible Note has a maturity date of 16 December 2022 and the Lender can elect to convert all or part of the principal amount of the Convertible Note into fully paid ordinary shares in the Company at any time prior to maturity at a conversion price of 8.0p per share. The Convertible Note bears interest at a rate of 10% per annum and is secured by a senior first ranking charge over the Company, including it's 8.5% interest in the Duyung PSC and Mako Gas Field.

A condition of the Convertible Note was that the Company secure commitments for a minimum of GBP3.0 million through an equity placement in conjunction with the Convertible Note, which it has now successfully achieved. The Company has accepted over-subscriptions above the GBP3.0 million threshold that will be used to partly fund testing of any oil column encountered whilst drilling, though further funding will be required should the Company encounter an oil column that requires testing. The Company has a number of alternatives for that further funding under consideration.

Significantly, the combined funds raised through the Placing and Convertible Note now complete the funding requirements (on a dry hole basis) for the drilling of the Jade Prospect. As announced in November 2021, Empyrean executed an Integrated Drilling Contract ("IDC") with China Oilfield Services Limited ("COSL") which confirmed a substantially reduced turnkey quote for the drilling of the Jade prospect of US$12.38 million on a dry hole basis, an approximate 34% saving on the initial quote. On a success basis, testing of any oil column has been quoted at an additional US$7.4 million. Immediately following the Placing and Convertible Note issue, the Company will have GBP10.68m (approx US$14.2m) cash on hand.

Following the Placing, the Company's enlarged issued share capital will comprise 637,320,780 ordinary shares of 0.2p each (the "Shares"), each with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, securities of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

The Placing Price represents a 16.67% discount to the price of the Company's shares as at close of business on 15 December 2021 (7.20p), a 16.13% discount to the 7-day volume weighted average price ('VWAP') and a 15.44% discount to the 30-day VWAP of the Company's shares. The conversion price of the Convertible Note (8p) represents a 11.11% premium to the price of the Company's shares as at close of business on 15 December 2021, a 11.83% premium to the 7-day volume weighted average price ('VWAP') and a 12.75% premium to the 30-day VWAP of the Company's shares

The majority of the subscribers to the Placing were institutional and high net worth investors, including both new investors and existing shareholders, and also clients of First Equity Limited in the United Kingdom and both Petra Capital and Max Capital in Australia. Petra Capital in Australia were the corporate advisor to the Convertible Note.

Funds raised from the proceeds of the Placing and Convertible Note will primarily be used for final drilling preparation activities and the drilling of the Jade prospect, and for the Company's general working capital requirements.

The 2021 drilling campaign is targeting a world class conventional oil target in the Jade prospect, to which Gaffney Cline assigned a Geological Chance of Success ("GCoS") of 32%. Subsequent to this independent assessment, the Company has completed a gas cloud study and post stack seismic inversion study that further mitigate risk. As a result, the Company's internal assessment of the GCoS for the Jade prospect now stands at 41%. The Jade prospect has a Gaffney Cline audited mean in place potential of 225 MMbbl and a P10 in place upside of 395 MMbbl. The drilling of the Jade prospect is the first of the three identified prospects within Block 29/11, which also contains the Topaz and Pearl prospects. The combined audited mean in place potential of all three prospects is 884 MMbbl and a P10 in place upside of 1,588 MMbbl.

COSL has currently assigned the NH8 drill rig to drill the Jade prospect. The Company engaged COSL back in October to complete a required well site survey over the Jade drill location. The well site survey requires 5 days of suitable sea conditions, including swells less than 1.2m, in order to complete this survey. Sea conditions have not allowed this survey to proceed as at today's date. The Company and COSL will complete this survey as soon as sea conditions allow, and the survey vessel is fully equipped and on standby to mobilise immediately should weather conditions allow. The well site survey is critical to 2 of 8 essential permits required to drill. A total of 5 permit applications have already been made and are expected to be granted in the coming weeks. The last permit relates to the oil spill response plan which is currently nearing completion and expected to be lodged within the coming week. As these permits are granted, the Company will provide updates by way of announcement.

It is expected that the Jade prospect will take approximately 26 days to reach total depth, with the testing of any oil column encountered expected to take a further 14 days. The Jade prospect is targeting a potentially world class conventional carbonate reservoir, with discoveries nearby producing sweet light oil in the 38-41 api range. Four recent nearby discoveries exhibit gas clouds on 3D seismic in the overburden rocks above the reservoir and seal. This feature is not exhibited in nearby dry wells. Empyrean's Jade and Topaz prospects both exhibit gas clouds on 3D seismic similar to nearby discoveries. Any discovery at the Jade prospect will significantly further de-risk the 'double the size of Jade' target at the Topaz prospect.

Empyrean has a 100% working interest in Jade during the exploration phase of the project. Empyrean's partner in the project, China National Offshore Oil Corporation ('CNOOC"), has the right to assume a 51% interest in the project during the development of any discovery. Exploration costs are recovered at an accelerated rate from first production. Development costs are also recovered from first production along with 9% interest.

Application will be made for the New Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 22 December 2021. The New Ordinary Shares will rank pari passu with existing shares in issue.

Cyber Fraud Incident

The Company recently made a payment totalling US$1.98 million to China Oilfield Services Limited ("COSL"), representing a 10% deposit (US$1.23m) on the dry hole cost component of the Integrated Drilling Contract ("IDC") signed with COSL plus mobilisation costs (US$0.75m); however, the Company has been informed that this payment has not been received by COSL and appears to have been redirected to an unknown third party as a result of a sophisticated cyber fraud perpetrated against COSL and the Company.

[blakieboy7] 16/12/2021 13:17

Bengal you're very shortsighted - if Eme hit the black stuff, those warrants will be extremely valuable

[bengal1] 16/12/2021 13:16

Terrible for all those 12p warrants

[oilforex] 16/12/2021 13:15

Oh god.. the missing money! Tk fallen for Christmas PayPal scam!

[blakieboy7] 16/12/2021 13:12

Wtf has happened to the 10% deposit payment?! Ffs nothing is ever simple

[naim96aim] 16/12/2021 13:10

Ahahahahaahahahahahahaha did say.

[blakieboy7] 16/12/2021 13:09

Placing at 6p

[blakieboy7] 16/12/2021 13:09

RNS Eme raises 7m!!!

[petercrosby] 16/12/2021 12:58

Presumably he can extend it but thats another £20K+++?