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Highlights:

  • EME raises GBP 1 million via share placing at 0.08p per share.
  • EME Funds to support Mako Gas Field costs and general working capital requirements.
  • EME Mako JV signs Gas Sales Agreement with Indonesian utility PLN Persero.

Empyrean Energy plc (LSE:EME), an oil and gas company with assets in Australia, Indonesia, and the United States, has announced a capital raise of GBP 1 million (before costs) through the placement of 1.25 billion new ordinary shares. The shares were issued at 0.08 pence per share, representing an effort by the company to secure funding for ongoing development costs and general working capital needs. The placement, managed by CMC Markets Plc (trading as CMC CapX) as the placing agent, is conditional upon the new shares being admitted to trading on AIM. Admission is expected to occur on 25 July 2024. Upon admission, the total number of shares in issue will rise to approximately 5.72 billion, providing an updated reference point for shareholders when calculating voting rights under the FCA's Disclosure Guidance and Transparency Rules.

A portion of the funds raised will be allocated to Empyrean’s 8.5% working interest in the Mako Gas Field, located in the Duyung Production Sharing Contract (PSC), offshore Indonesia. The remainder will be used for general corporate purposes. The fundraise follows the recent announcement on 17 July 2025 that the joint venture partners in the Mako project have entered into a Gas Sales Agreement (GSA) with Indonesia’s state-owned electricity utility, PLN Persero. The GSA establishes commercial terms for the sale of gas from the Mako field to PLN and is viewed by the participants in the project as a significant contractual step in moving towards production readiness. The agreement follows a prior directive from the Indonesian government that gas from Mako be prioritised for domestic supply.

The Mako Gas Field is recognised as one of the largest undeveloped gas discoveries in the West Natuna Basin and is part of the broader Duyung PSC. The GSA is expected to provide a framework for the commercialisation of gas volumes from the field, and it formalises the role of the project in Indonesia's domestic energy supply strategy. Empyrean CEO Tom Kelly noted that the funding decision aligns with recent project developments, particularly the GSA milestone. The company acknowledged the need to reinforce its financial position.

In connection with the placement, Empyrean has also issued warrants to CMC Markets Plc, granting the right to subscribe for up to 62.5 million new ordinary shares at the same placing price of 0.08p. These warrants are exercisable within two years from the date of grant. Empyrean’s broader asset base includes interests in the Sacramento Basin (California, USA), and the offshore Western Australia Permits (WA-488-P), where the company has previously undertaken exploration activities. However, the Mako asset remains a near-term focus given its scale, current development progress, and strategic alignment with Indonesia’s domestic energy transition goals.

The company’s strategy, as outlined in prior updates, continues to focus on advancing Mako towards first gas while managing expenditures and capital needs in line with project milestones. This latest capital raise is part of that ongoing effort. With share admission pending, investors and market participants will now monitor further operational updates and any potential timeline disclosures relating to Mako’s development and financing progress.

EME shares were trading 13.98% lower at GBX 0.093 per share as on 21 July 2025.