Empire Energy Group Ltd. reported Thursday that definitive agreements have been signed between Imperial Oil & Gas Pty Ltd., a 100%-owned subsidiary of Empire and AEGP Australia Pty Ltd., an affiliate of American Energy Partners LP (AELP), for the farm-out and development of Empire’s Northern Territory oil and gas tenements in Australia.
The definitive agreements provide $60 million in Phase 1 funding and further provides access of up to $100 million of funding for Phase 2 development. Two additional payments of $7.5 million each are payable in cash to Imperial, with the first payment payable on closing. The closing of the definitive agreements is subject to usual conditions for a transaction of this nature and size. The cut-off date for closing is within 120 days of the date of the definitive documents.
Approvals for the closing of the farm-out agreement from the necessary departments are being undertaken. In addition, planning and approval work relating to seismic and the location of drill pads on EP 184 and EP 187 has commenced, with on-ground work expected to proceed following the end of the wet season, being February to March 2016.