Empire Energy Group (ASX:EEG) has been on a roll recently, announcing approval of its environmental management plan and the commencement of drilling. Today, the company announced the execution of binding commitment letters with Macquarie Bank for a $65m financing package to advance the Beetaloo Basin projects. The funding comprises three facilities designed to support key initiatives, including exploration, infrastructure construction and environmental obligations.
The financing includes a $30m Research and Development (R&D) Facility, upsized from $2.25m, tied to future tax rebates under Australia’s R&D Tax Incentive Scheme. Funds will cover exploration and infrastructure activities, such as the Carpentaria-5H well. Additionally, a $5m Performance Bond Facility will address Northern Territory environmental bonding requirements. Finally, a new $30m Midstream Infrastructure Facility will finance the refurbishment and construction of the Carpentaria Gas Plant, with repayments structured through tolling fees.
Managing Director Alex Underwood commented: “Macquarie has been financing Empire Energy for 15 years. This package enables us to progress towards pilot production in 2025, targeting demand in the Northern Territory and Australia’s east coast market.”
Empire is currently drilling the intermediate section of the Carpentaria-5H well, with plans to target the Middle Velkerri B shale interval. The company has reported a cash balance of $34.8m as of September 2024.
Shares are trading 2.38% higher at 21.5 cents.