The Empire Energy Group Ltd (ASX: EEG) share price is on watch today.
This comes after the company entered a trading halt at its request pending a new announcement. Which in turn comes after it released a major acquisition announcement earlier this morning.
Below we take a look at the ASX energy share's acquisition announcement, released shortly before it requested a trading halt.
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What acquisition did Empire Energy report?
The Empire Energy share price remains in a trading halt after the company announced its intent to acquire an 82.5% interest in 5 oil and gas tenements in the Northern Territory's Beetaloo sub-basin.
The company reported that its best estimate of Prospective Resources have more than doubled while its Contingent Resources have increased more than 350%.
Pangaea will receive $5 million cash and 140 million shares in Empire Energy once the transaction is complete. Pangaea will also receive 8 million unlisted options in Empire Energy with an exercise price of 70 cents per share.
Empire reported that the acquisition will give it numerous "drill-ready targets" and boost its early commercialisation plans for the Beetaloo.
Commenting on the acquisition, Empire Energy's Managing Director Alex Underwood said:
This acquisition confirms Empire's position as the leading Beetaloo independent. The transaction significantly increases Empire's operated acreage, Prospective Resources and Contingent Resources in this key region.
Empire now controls a globally significant gas resource which strengthens our early commercialisation strategies. Pangaea's tenements overlap the Amadeus Gas Pipeline, which in addition to the McArthur River Mine Gas Pipeline that crosses EP187, provides Empire with multiple pathways to market utilising existing infrastructure.
Underwood added that the resources contained in the tenements will help Australia and the wider Asian region meet their energy needs.
The acquisition remains subject to Empire Energy's shareholder and Northern Territory government approvals. Empire expects the deal to be completed in June.
Amicaa is acting as financial advisor for Empire while Morgan Stanley is acting as financial advisor for Pangaea.
Empire Energy share price snapshot
Empire Energy shares have gained 98% over the past 12 months, far outpacing the 31% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the Empire Energy share price is up 4%.
