Empire Energy Group Limited (the Company) referred Wednesday to its December 2015 announcement on the signing of the Imperial Farm-out Agreement (Agreement) between Imperial Oil & Gas Pty Ltd. (Imperial), a 100 percent owned subsidiary of the Company and AEGP Australia Pty Ltd. (AEGP), an affiliate of American Energy Partners LP (AELP) for the farm-out and development of the Company’s Northern Territory petroleum tenements. AEGP has the right to acquire up to an 80 percent interest in Imperial’s 14.6 million acres in the McArthur Basin by spending $60 million over a 3 year period. Imperial will be paid $7.5 million at closing and a further $7.5 million subject to defined benchmarks being achieved.
The Directors of the Company are now pleased to announce that the Foreign Investment Review Board (FIRB) condition has been satisfied and that AEGP has lodged the Agreement with the Minister for approval and registration in accordance with section 96 of the Northern Territory Petroleum Act. The Company is in the process of seeking to complete its permit assignment closing obligations in relation to the assignment of EPs 184 & 187. Completion of all conditions set out in the Agreement must be on or before April 20, 2016 unless extended by mutual consent.
Approval for a seismic and drilling program has been lodged and is planned to commence in 2016.
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