Empire Energy has agreed to sell its US oil and gas assets located in the Appalachian region for up to $14 million.
Post completion, $3 million in cash will be available to support the development of Empire’s Beetaloo Basin assets in Australia.
The company will retain a 3.75 per cent carried working interest over shale formations with negligible holding costs.
Empire Energy managing director Alex Underwood said the Empire team is excited 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,” Underwood said.
In 2018, Empire was carrying $58 million of debt against its US assets. The company sold its Kansas assets in 2019 which reduced the US debt.
“Empire’s board and management thank our US employees for their loyal service over the years and we wish them the best,” Underwood said.
“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.”
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