In December 2015, Empire Energy Group Ltd. signed a farm-out agreement between Imperial Oil & Gas Pty Ltd., a 100%-owned subsidiary of the company, and AEGP Australia Pty Ltd., an affiliate of American Energy Partners LP, for the farm out and development of the Empire’s Northern Territory petroleum tenements. The Foreign Investment Review Board (FIRB) condition has now been satisfied.
AEGP has the right to acquire up to an 80% interest in Imperial’s 14.6 million acres in the McArthur Basin by spending $60 million over a three-year period. Imperial will be paid $7.5 million at closing and a further $7.5 million subject to defined benchmarks being achieved.
Empire Energy has also announced that AEGP has lodged the agreement with the Minister for approval and registration in accordance with Section 96 of the Northern Territory Petroleum Act. Empire is in the process of seeking to complete its permit assignment closing obligations in relation to the assignment of EP 184 and EP 187. Completion of all conditions set out in the agreement must be on or before April 20, unless extended by mutual consent.
Approval for a seismic and drilling program has been lodged and is planned to begin in 2016.