Empyrean announce that it has reached agreement and concluded a sale of its 10% interest in the Hercules Project in Texas for total cash consideration of US$1,000,000.
Empyrean has sold its interest to Gulf Coast Midwest Energy Capital #5, LP and BI Gulf Coast, LLC two entities associated with Gulf Coast Midwest Energy Partners LLC who has been one of Empyrean's partners in the Project.
Proceeds from the sale of Hercules have been transferred from the purchaser to Empyrean.
Empyrean has sold the Project to focus on its core assets, in particular its working interest in the Sugarloaf Project, an Eagle Ford Shale development project in Texas that is already producing and selling condensate, non-gas liquids and gas.
Commenting today Empyrean CEO, Tom Kelly said "We are delighted to have achieved the sale of Hercules at this point in time. We see the proceeds from sale as complimenting our funding efforts for the development of Sugarloaf and helping to provide the right mix of development capital. We continue to assess proposals for a reserve based debt funding facility and believe that this additional US$1 million being received with no dilution to the company should be welcomed by shareholders. This sale effectively brings forward the net production revenue from a number of potential development wells at Hercules that we would have had to provide additional development capital towards in order to subsequently benefit from over the life of production. Gulf Coast Midwest Energy Partners LLC have been terrific partners and we look forward to further potential business with them in the future."
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