Empyrean Energy (AIM:EME) has raised gross proceeds of £1 million through a placing of 2 billion new shares at 0.05p each, the AIM-listed oil and gas explorer with interests in Australia, Indonesia and the United States confirmed.
The raise follows Monday's binding Heads of Agreement with ADX VIE, a subsidiary of ASX-listed ADX Energy, covering participation in the GOLD Cluster project within the Molasse Basin of Upper Austria.
Net proceeds will fund Empyrean's share of drilling costs for the GOLD-1 exploration well, alongside general working capital.
Empyrean's success-case commitment stands at approximately €555,400 (£476,672), representing 20% of the estimated €2.777 million well cost cap, in exchange for a 10% economic interest in the GOLD Cluster through an Austrian law partnership.
ADX.V plans to spud GOLD-1 in the fourth quarter.
The placing follows Empyrean's completion last week of the NNB transaction and its earlier move to secure an economic interest in the Mako gas project, where first gas is targeted for the fourth quarter of 2027.
"While acknowledging this funding round is dilutive, it provides Empyrean with a significant growth opportunity," chief executive Gaz Bisht said, adding that the deal complements the company's longer-term exposure to Mako.
Following admission of the new shares, Empyrean will have 7.72 billion shares in issue.
Normal trading resumed at 7.30am today after the company's temporary Capital Access Window closed.
News Intelligence what this means for the company
Empyrean raised £1m at 0.05p per share (2 billion shares) to fund its 10% stake in ADX Energy's GOLD-1 exploration well in Upper Austria, committing €555,400 of the €2.777m well cost cap. The raise is dilutive—share count rises to 7.72 billion post-admission—but management frames it as a growth opportunity that complements the company's longer-term exposure to Mako, where first gas is targeted for Q4 2027.
- ADX Energy (operator via ASX-listed subsidiary ADX VIE) now has Empyrean as a 10% economic partner in GOLD Cluster, reducing ADX's solo exposure to well cost overruns and drilling risk.
The raise materially dilutes existing shareholders (share count up 35% to 7.72bn) at a depressed price, but funds a minority stake in an early-stage exploration well with no guarantee of commercial success. The trade-off hinges on whether GOLD-1 discovery upside justifies the dilution, and whether management's assertion that it 'complements' Mako exposure (a development project with reported funding to first gas) reflects genuine portfolio synergy or opportunistic capital deployment.
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