Empire Energy Group Limited (“Empire”) is pleased to announce it has executed binding term sheets with Macquarie Bank Limited (“Macquarie”) for the establishment of new credit facilities totaling A$65 million. Together with existing cash on hand, proceeds from the credit facilities will be applied to Carpentaria-5H (“C-5H”) and the Carpentaria Gas Plant and associated infield infrastructure.

The A$65 million credit facilities with Macquarie comprise:

• R&D Facility (A$30 million upsized from A$2.25 million existing facility): Facility sized at 80% of the FY2024 and FY2025 estimated tax rebates under the Australian Government’s Research and Development (“R&D”) Tax Incentive Scheme. The R&D Facility provides Empire with additional liquidity and will allow Empire to better manage its working capital requirements. Funds can be applied to Northern Territory exploration, appraisal and development activities including C-5H and construction of infield infrastructure; 
• Performance Bond Facility (A$5 million, same size as existing facility): to meet Empire’s Northern Territory environmental bonding obligations through Macquarie bank guarantees in favour of the Northern Territory Government on a non-cash-backed basis; and 
• Midstream Infrastructure Facility (A$30 million new facility): proceeds can be applied to the refurbishment and construction of the Carpentaria Pilot Gas Plant. Repayment of the Midstream Infrastructure Facility will be via a tolling fee. 

The R&D and Performance Bond Facilities represent a refinancing of Empire’s existing credit facility with Macquarie.

Availability under the R&D Facility has been increased from 60% of expected R&D tax rebate under the existing facility to 80% of expected R&D tax rebate while maintaining the same interest margin.

Pricing for the Performance Bond Facility has been reduced from BBSW + 10% to a fixed 10% per annum on issued guarantees.

The other key terms of the credit facilities are included in Appendix A to this announcement.

Carpentaria-5H Drilling Update

The surface section of the C-5H well has been successfully drilled and cased, effectively isolating the Cambrian Limestone Aquifer. Empire is currently drilling ahead in the vertical section of the intermediate hole at a depth of 770 metres MD at the time of publication of this release. The well path will soon begin building and turning towards the Middle Velkerri B shale target interval. After the intermediate section is drilled and cased, Empire will drill and case the horizontal section.

Source: Empire Energy Group