LONDON: Empyrean Energy plc said Monday it raised £1 million through a placement of 1.25 billion new shares to fund ongoing development of its Mako Gas Field interest in Indonesia and for general working capital.
The new shares were issued at 0.08 pence each, according to the London-listed oil and gas developer, which has assets in Australia, Indonesia and the United States.
CMC Markets Plc, trading as CMC CapX, acted as placing agent. In connection with the placement, Empyrean will issue warrants to CMC to subscribe for 62.5 million additional shares at the issue price within two years.
Admission of the placement shares to the AIM market is expected on July 25. Following the admission, Empyrean will have a total of 5.72 billion ordinary shares outstanding.
The fundraising follows the recent signing of a Gas Sales Agreement between the Mako joint venture partners and Indonesian state-owned electricity company PLN Persero. Empyrean owns an 8.5% interest in the Mako Gas Field.
“This is a prudent step to bolster our cash position as the Mako Project progresses toward production,” said Empyrean CEO Tom Kelly. “Indonesia’s energy demand continues to grow, and natural gas is increasingly replacing coal in the country’s energy transition.”