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Empire acquires Rosalind Park Gas Plant

Empire announced it had acquired the RPGP from AGL Limited for $2.5 million in cash, significantly accelerating the path to Carpentaria Pilot Project. Image: ahirao/stock.adobe.com

This acquisition significantly accelerated the path to the Carpentaria Pilot Project production and reduced the capital expenditure required to commence gas sales.

Empire announced it had acquired the Rosalind Park Gas Plant from AGL  on 4 December 2023 for $2.5 million in cash, significantly accelerating the path to Carpentaria Pilot Project production and reducing the capital expenditure required to commence gas sales.

“The acquisition of the Rosalind Park Gas Plant from AGL was a highlight of the quarter,” Empire Energy managing director Alex Underwood said.

“The plant has a design capacity of 42 TJ / day, which is well in excess of the capacity required for Empire’s up to 25 terajoules (TJ) / day EP187 pilot project.

“Empire expects that it will be able to reduce the timeline to first gas by ~12 months and potentially save more than $30 million compared to new build options given current global supply chain constraints.”

The receipt of $15.6 million in cash during the quarter from the 2023 research and development tax refund bolstered Empire’s cash balance and allowed the company to reduce outstanding debt according to Underwood.

The funds remaining after debt repayment will be applied to the work Empire is doing to reach a final investment decision (FID) for the EP187 pilot project and towards the purchase of long-lead items.

“The Empire team has commenced the new year with a key focus on reaching FID in the coming months,” Underwood said.

“In the success case, this would see project construction activities occurring in the second half of calendar 2024 and first gas sales in 2025.”

Underwood added that gas sales negotiations were proceeding well and that regulatory approval documentation would soon be submitted to the Northern Territory regulators, and community consultation was continuing.

Empire is focused on financing the pilot project in a manner that minimises dilution of shareholders’ interests in the company, with the potential to farming out an interest in the project, and securing project financing following execution of a gas sales agreement.

“We look forward to updating shareholders,” Underwood said, “as we progress these initiatives.”

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