Empyrean Energy PLC
27 July 2005
27 July 2005
Admission to trading on AIM after £2.5 million placing
Gas exploration project, Germany- commercial viability to be established
in Q4 2005
Developing energy projects in geopolitically stable environments
The Directors of Empyrean Energy PLC ("Empyrean" or the "Company"; Ticker:
"EME") today announce the commencement of trading on AIM after a placing by HB
Corporate raised £2.5 million, before expenses. The Company is issuing 7,144,282
ordinary shares, representing 23.3 per cent. of the enlarged issued share
capital of the Company, at 35p per ordinary share. The placing will raise £2.5
million (before expenses), of which approximately £2.1m will be receivable by
the Company. The Company will be issuing to each subscriber under the placing 1
warrant (exercisable at the placing price) for every 3 ordinary shares
subscribed. The Directors do not intend to apply for the warrants to be admitted
to trading on AIM.
Empyrean was incorporated in the United Kingdom in March 2005, to finance energy
resource exploration and development projects in geopolitically stable
environments. The Company has acquired the rights to earn up to a 52% working
interest in the Neues Bergland permit, a substantial fractured reservoir natural
gas exploration project in Germany.
The highly prospective area of the Neues Bergland permit is located close to
Frankfurt in Germany. The permit contains the Pfalzer Anticline which is a 515
square kilometre structure containing deep anthracitic coal beds overlaid by
shale and sediment. The coal beds are too deep to mine economically but have
been estimated by the independent expert to have generated many hundred trillion
cubic feet ("Tcf") of gas, with a recoverable gas potential of up to 6.2 Tcf in
the first drilling prospect alone. The Company will test a minimum of three
large potential pay-zones at different depths within the first drilling prospect
with drilling of the Glantal-1 well in the fourth quarter of 2005. The
independent expert has calculated the smallest of these potential pay-zones has
the potential to hold a recoverable 1.2 Tcf of gas. Following a review of the
results, a decision will be made by the Directors as to the commerciality of the
Glantal prospect. Seal integrity will be of the highest importance. After
drilling the Glantal-1 well the Company will have approximately £1.7 million
available to commence development of a discovery or continue exploration. Should
the permit prove to be economically unviable the Company will use remaining
funds to pursue alternative projects.
Gas prices in Germany are strong and demand is growing due to existing
government policies requiring the reduction of nuclear and coal powered
electricity generation. These factors will enhance the economic viability of a
commercial discovery.
During 2003 Germany was the sixth largest consumer of energy in the world, and
the fourth largest consumer of natural gas. In 2003 Germany imported 75% of its
annual natural gas consumption of 3.2 Tcf. Germany's national natural gas
reserves were estimated at 10.8 Tcf at the start of 2004.
Following the establishment of seal integrity Empyrean will engage in further
fund raising in order to secure the 52% interest in the Permit which it is
entitled to under the conditions of the farm-in agreement.
Commenting on the admission today Christopher Lambert, Executive Director, said:
"Given the possible size of the reservoir within our permit and potential amount
of recoverable gas our first well, Glantal-1, is extremely exciting for such a
small company. Even a modest discovery of gas would be commercially viable as we
are so close to existing gas distribution infrastructure."