Empire Energy Group (ASX:EEG) recently made a big splash, announcing the approval of its environmental management plan and the start of drilling. Today, the company announced it has entered into binding letters of commitment with Macquarie Bank for a $65 million financing package to progress the Beetaloo Basin projects. The financing includes three facilities designed to support key initiatives, including exploration, infrastructure construction and environmental obligations.
The funding includes a $30 million research and development (R&D) facility, expanded from the previous $2.25 million, tied to future tax relief under the Australian Research and Development Tax Incentive Program. The funds will cover exploration and infrastructure activities, such as the Carpentaria-5H well. Additionally, a $5 million performance bond facility will address the Northern Territory’s environmental bond requirements. Finally, a new $30 million Midstream Infrastructure Facility will finance the renovation and construction of the Carpentaria gas plant, with repayments structured through tolling fees.
Chief executive Alex Underwood commented: “Macquarie has been funding Empire Energy for 15 years. This package allows us to progress towards pilot production in 2025, targeting demand in the Northern Territory and east coast market of Australia.”
Empire is currently drilling the middle section of the Carpentaria-5H well, with plans to target the Middle Velkerri B shale interval. The company reported a cash balance of $34.8 million as of September 2024.
The shares are trading up 2.38% at 21.5 cents.