SYDNEY, AUSTRALIA: Empire Energy has entered into an unconditional agreement to sell its US oil & gas assets located in the Appalachlan region for up to US$9.1 million, comprising upfront cash payment of US$5.9 million and contingent and solar deferred payments of US$3.2 million.
Upon completion, Empire’s US Macquarie Bank credit facility will be repaid in full. Post-completion, US$2.2 million in cash will be available to support the development of Empire’s Beetaloo Basin assets.
Comments from Managing Director Alex Underwood: “The Empire team is delighted to have successfully executed its US asset divestment program. Empire will be a pure-play Beetaloo / McArthur Basin focused developer while retaining a free- carried interest in shale rights in the United States at little to no cost to shareholders.
In 2018, Empire was carrying US$38 million of debt against its US assets, supported by only US$4 million of EBITDA to service that debt. Empire sold its Kansas assets in 2019 which reduced the US debt, and this transaction results in full repayment of the US debt and return of over US$2 million in cash to support Empire’s Beetaloo-focused strategy.
Empire’s Board and managerment thank our US employees for their loyal service over the years and we wish them the best.
Empire can now focus its full attention on the development of the world class Beetaloo Basin, which in the success case will provide the people of the Northern Territory with sorely needed energy security and employment, royalty income to the Northern Territory Government, deliver large volumes of gas into the chronically undersupplied Australian East Coast market, and provide energy security for the broader Asian region via LNG export.”