Empyrean Energy has sold its stake in the Sugarloaf development in the US to Carrier Energy Partners in a deal worth up to $71million.
Carrier has agreed a purchase price of US$61,500,000. Empyrean may also receive an additional $10million subject to conditions.
Empyrean had a 3% working interest in the Sugarloaf AMI Project, which is operated by Marathon Oil. Carrier is a Houston, Texas based private oil and gas company focused on the acquisition and exploitation of upstream assets whose primary objective is to partner with select operators that are developing both unconventional and conventional reservoirs in North America.
Empyrean retains a 58.084% working interest in the Eagle Oil Pool Development Project, located in the San Joaquin Basin in southern California; a 7.5% WI in two producing wells and lesser interests in another six producing wells located in the Sugarloaf Block A operated by ConocoPhillips.
Chief executive Tom Kelly, said: “The transaction represents an excellent outcome for our company and its shareholders given the backdrop of continued low oil prices and particularly limited development capital availability.
“We move forward debt free and with the potential to unlock further significant value for shareholders.”