(Alliance News) - Empyrean Energy PLC on Tuesday said it has raised GBP625,000 before costs through a placing of 500 million new shares at 0.125 pence each.
The oil and gas development firm in China, Indonesia and the US said shares were issued at a nearly 32% discount to the closing price on Monday, and at a 6% discount to the ten-day average share price prior to Monday's close.
The proceeds will be used to fund Empyrean's anticipated share of additional costs for the drilling, logging and testing of its Wilson prospect, as well as for general working capital purposes.
Empyrean also on Tuesday said it has secured the right to earn an additional 12.8% working interest in the Wilson River-1 well, which would take its total stake in the project to 52.8%.
This has been negotiated with Chi Oil and Gas Pty Ltd, the current leaseholder of ATP1173, with the amended agreement allowing for Empyrean and Condor Energy Services Ltd to earn a further 20% interest in the lease, upon which time the Wilson River-1 well will be drilled.
Chief Executive Officer Tom Kelly said: "Empyrean is delighted to have secured funding to enable Empyrean the right to earn an additional 12.8% working interest in the Wilson River-1 well.
"We look forward to providing shareholders with further updates as preparations to drill progress."
Shares in Empyrean closed down 5.1% to 0.16 pence in London on Tuesday.
By Emily Parsons, Alliance News reporter
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