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APA GROUP Capital/Financing Update 2019

Dec 22, 2019

64398_rns_2019-12-22_42ef6eb2-8dca-4086-ab42-0beb71bbc26f.pdf

Capital/Financing Update

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23rd December 2019

ASX Market Announcements ASX Limited 20 Bond Street Sydney NSW 2000

Update on Memorandum of Understanding with APA Group

The Directors of Emperor Energy Limited are pleased to provide an update on progress made since execution of a non-binding Memorandum of Understanding (MOU) between Emperor Energy and APA Group (ASX:APA) as previously announced on 16th October 2019.

The Parties have now agreed the pre-Front End Engineering Design (FEED) scope of works to be included in an early works agreement that will progress a preliminary design and cost study for the establishment of:

1. A subsea pipeline from Emperor Energy’s Judith Gas Field;

2. A new gas processing train to operate in parallel with APA’s existing Orbost Gas Processing Plant; and

3. An export pipeline to the Eastern Gas Pipeline located to the north of the Orbost Gas Processing Plant.

APA will now progress to determine costs for the scope of the pre-FEED study from suppliers and engineering consulting groups. After costs for the study are determined, APA and Emperor Energy intend to negotiate a binding contract in the 1st Quarter of 2020 for the completion of the pre-FEED study for the Judith Gas Field Project. The parties intend to commence the pre-FEED study in 2nd Quarter 2020.

Completion of this pre-FEED study will add certainty to a future Judith Gas Field project feasibility study. It will also provide clarity on the scope and shorten the timeframe required for the completion of the project FEED that would be carried out after drilling of the Judith 2 Exploration and Appraisal Well.

About the Judith Gas Field

The 100% Emperor Energy owned Judith Gas Field is located within the VIC/P47 Permit in the offshore Gippsland Basin, Victoria.

On 11th July 2019 Emperor Energy advised that an Independent Resource Statement had been completed for the Judith Gas Field within the 100% Emperor Energy owned VIC/P47 Exploration Permit located in the offshore Gippsland Basin, Victoria (Figure 1). The Resource Statement Highlighted:

  • 2C Contingent Gas Resource of 150 Bcf

  • P50 Unrisked Prospective Gas Resource of 1.226 Tcf

Level 32, 1 Market Street, Sydney, NSW, 2000 Ph +02 9275 8878

GPO Box 5360 emperorenergy.com.au Sydney, NSW, 2001 ABN: 56 006 024 764

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Figure 1: Location of 100% Emperor Energy owned VIC/P47 offshore Gippsland Basin showing regional permits along with oil and gas fields

Judith Gas Discovery Judith Gas Discovery Contingent Resources Contingent Resources Contingent Resources
Low
Estimate
1C
Best
Estimate
2C
High
Estimate
3C
GIIP Bcf 180 278 386
Salesgas Bcf 97 150 209
Condensate MMbbl 1.4 2.2 3.2
Greater Judith Area Greater Judith Area Unrisked Prospective Resources Unrisked Prospective Resources Unrisked Prospective Resources
P90 P50 P10
Judith Deep Bcf 38 62 92
West Bcf 83 127 176
Central Bcf 37 333 628
North Bcf 29 166 315
North East Bcf 49 279 494
North West Bcf 15 102 226
South Bcf 14 157 565
Total Bcf 265 1226 2496

Table 1: Summary of Contingent and Prospective Resources for Judith area of VIC/P47 (3D-GEO, July 2019)

Level 32, 1 Market Street, Sydney, NSW, 2000 Ph +02 9275 8878

GPO Box 5360 Sydney, NSW, 2001

emperorenergy.com.au ABN: 56 006 024 764

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Figure 2: Judith Gas Field, and Greater Judith Compartments (3D-GEO, July 2019)

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Figure 3: Judith Gas Sand 1 Depth Model from Longtom Gas Field to the Greater Judith Structure

Level 32, 1 Market Street, Sydney, NSW, 2000 Ph +02 9275 8878

GPO Box 5360 emperorenergy.com.au Sydney, NSW, 2001 ABN: 56 006 024 764

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Yours faithfully

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Carl Dumbrell Company Secretary

Ph +61 402 277 282 [email protected]

Corporate Directory

Board of Directors

Carl Dumbrell Phil McNamara Nigel Harvey Malcolm King

Company Secretary

Carl Dumbrell

Geological Consultant

Geoff Geary

Registered office & Principle place of business

Level 32, 1 Market Street Sydney NSW 2000

Mailing Address

GPO Box 5360 Sydney NSW 2001

Auditors

ICP Assurance Services Suite 1204, 227 Elizabeth Street Sydney NSW 2000

Lawyers

Hopgood Ganim Level 27, Allendale Square 77 St Georges Tce, Perth WA 6000

Share Registry

Automic Pty Ltd ACN 152 260 814 Trading as Automic Registry Services Level 5, 126 Phillip Street

Investor Relations

Six Degrees Group Level 10, 84 Pitt Street Sydney NSW 2000

Sydney NSW 2000

Phone: 1300 288 664 Overseas callers: +61 2 9698 5414 Email: [email protected]

GPO Box 5360 Sydney, NSW, 2001

Level 32, 1 Market Street, Sydney, NSW, 2000 Ph +02 9275 8878

emperorenergy.com.au ABN: 56 006 024 764

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Capital Structure

The company currently has issued capital (as at 23 December 2019) of: Ordinary fully paid shares (ASX: EMP) 81,583,467 Options expiring 31 March 2020 (Ex $0.075) (ASX: EMPOC) 44,087,608

Top 20 Shareholders – 23 December 2019

Position Holder Name Holding %
1 Citicorp Nominees Pty Limited 6,923,830 8.49%
2 Scintilla Strategic Investments Limited 5,400,000 6.62%
3 Sama Zaraah Pty Ltd 3,257,000 3.99%
4 CraigChapman 3,166,095 3.88%
5 Daniel J Peters 3,064,197 3.76%
6 Bond Street Custodians Limited 2,916,474 3.57%
7 Carl Dumbrell 2,431,391 2.98%
8 The Australian Special Opportunity Fund LP 2,222,223 2.72%
9 Martin Rowney 2,126,441 2.61%
10 Slade Technologies Pty Ltd 1,833,334 2.25%
11 Littlejohn Embrey Engineering Pty Ltd 1,798,973 2.21%
12 Harness Pty Ltd 1,341,667 1.64%
13 H&M Investments PtyLtd 1,283,502 1.57%
14 Buduci Fond PtyLtd 1,271,175 1.56%
15 Mark Stephen O'leary 1,200,000 1.47%
16 Nishant Kumar Misra 1,144,445 1.40%
17 Arlam Pty Ltd 1,134,541 1.39%
18 Raplon PtyLtd 1,112,599 1.36%
19 Craig Pontey 1,111,112 1.36%
20 Philip McNamara 1,071,429 1.31%

Level 32, 1 Market Street, Sydney, NSW, 2000 Ph +02 9275 8878

GPO Box 5360 Sydney, NSW, 2001

emperorenergy.com.au ABN: 56 006 024 764