Directors of the previously defunct oil and gas explorer Empire Oil & Gas (ASX: EGO) have announced the proposed acquisition of Venator and their Queensland oil assets with the intent of relisting on the ASX. This comes after Empire Oil & Gas went into administration in 2017 before administrators completed their obligations with Empire in January 2019.
Empire will seek to raise a minimum of $5.5 million up to a maximum of $7.5 million before re-branding the Company as Venator Petroleum and seek re-quotation on the ASX by 27 November 2019.
Key to the acquisitions will be permits ATP 1186P and ATP 1196A which are held by Venator.
The ATP 1186P permit, covers an area of 936 km2 on the southern flank of the highly productive Surat Basin located in Queensland and lies in an area which has produced 3.9 million barrels of oil from 5 commercial fields.
ATP 1196(A) permit application covers an area of 428 km2 where a 2013 estimation suggested reserves of up to 8 million barrels are in the vicinity.
Under the terms of the Proposed Acquisition by Empire, there will be a notable dilution of shares for EGO shareholders. At present, there are 53,618,672 EGO shares on issue but that figure will dilute to 316,692,672 if the minimum subscription is secured via the backdoor IPO.
Upon completion, Venator Petroleum will be led by Darren Bromley who currently holds the positions of CFO and COO at Triangle Energy (ASX: TEG). He will be joined by Andrew Kirk who previously spent 17 years with Woodside.
Empire will seek to raise up to $7.5 million at an Offer Price of 4 cents per share.