Business
Reduction of Interest in Duyung for Cash & Shares
Reduction of Interest in Duyung for Cash & Shares.
About this update from Empyrean Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6036P Empyrean Energy PLC 11 February 2019 \n\nThis announcement contains inside information\n \nEmpyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas\n \nEmpyrean Energy PLC (\"Empyrean\" or the \"Company\")\nReduction of Interest in Duyung PSC, Indonesia, for Cash and Shares\n \n11 February 2019 \n \nEmpyrean, the oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce that it has entered into a binding, conditional purchase agreement (the \"Agreement\") pursuant to which AIM listed Coro Energy plc (\"Coro\") will acquire a 15% interest in the Duyung Production Sharing Contract (\"Duyung PSC\") from West Natuna Exploration Limited (\"WNEL\") for aggregate consideration in cash and Coro shares of US$4.8 million and the contribution of US$10.5 million by Coro toward the 2019 drilling campaign at the Mako gas field (the \"Consideration\"). The cash and share component of the Consideration will be paid pro rata to the existing owners of WNEL, being Empyrean, which currently has a 10% effective interest in the Duyung PSC, and Conrad Petroleum Ltd (\"Conrad\"), which currently has a 90% effective interest in the Duyung PSC, each through shareholding in WNEL.\n \nWNEL is the owner and operator of the Duyung PSC in the West Natuna basin, offshore Indonesia which contains the Mako gas field.\n \nHighlights\n \n· The Consideration will be paid US$2.95 million in cash and US$1.85 million in the form of new ordinary shares in Coro (the \"Consideration Shares\")\n \n· Empyrean will receive cash consideration of US$295,000 and Consideration Shares with a value of US$185,000 for the transfer to Coro of 1.5% of its current 10% interest in the Duyung PSC\n \n· Following completion of the transaction, including the payment by Coro of US$10.5 million in partial funding of the 2019 drilling programme at the Mako gas field and subject to necessary Government and regulatory approvals, WNEL will make a direct transfer of interest in the Duyung PSC to Empyrean and the other owners. Empyrean's interest will be a direct ownership and no longer held through WNEL. The owners of the Duyung PSC will be Conrad (76.5%), Empyrean (8.5%) and Coro (15%...