Why the Empire Energy (ASX:EEG) share price is on watch today

The Empire Energy share price is on watch after going into a trading halt, following a major announcement and pending a new one.
The post Why the Empire Energy (ASX:EEG) share price is on watch today appeared first on The Motley Fool Australia. –

asx share price on watch represented by investor looking through magnifying glass

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.

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%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Empire Energy (ASX:EEG) share price is on watch today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!