EMPYREAN ENERGY PLC

Regulatory Filings • Aug 17, 2016

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 4565H

Empyrean Energy PLC

17 August 2016

Empyrean Energy PLC / Index: AIM / Epic: EME / Sector: Oil & Gas

17 August 2016

This announcement contains inside information

Empyrean Energy PLC ('Empyrean' or 'the Company')

Withholding Tax Certificate Receipt

Empyrean announces that the Withholding Tax Certificate Application (the "Application") submitted to the Internal Revenue Service (the "IRS") in the US has been approved by the IRS.  Following this approval, the Company has received an amount of US$9.724m which comprises the US$10.725m (as previously announced, being 15 per cent. of the anticipated maximum consideration of US$71.5m) reduced for the current year tax of US$1.001m which has been remitted to the IRS.

The amount of US$6.15m (as previously announced, being 10 per cent. of the Initial Purchase Price) is currently deposited with an escrow agent to secure the representation, warranty and indemnity obligations of the Company under the purchase and sale agreement entered into with Carrier (the "PSA Agreement").  The Company now estimates that it will receive US$2.519m due on or about 19 August 2016.  This amount is calculated as 50 per cent. of the amount in escrow, reduced for purchase price adjustments of US$0.111m and subject to withholding tax of 15 percent. of US$0.445m.  The remainder of the escrowed funds will also be subject to withholding tax of 15 percent. and is due for release on or about 19 February 2017.

The Board believes that it is prudent to receive both the judgement of the IRS in respect of the Application (and any refund due thereafter, which has now been received) as well as the first tranche of escrowed funds under the PSA, both of which will materially impact the funds available to the Company, before finalising plans for a distribution to shareholders.

**ENDS**

For further information please visit www.empyreanenergy.com or contact the following:

Empyrean Energy plc
Tom Kelly	Tel: +618 9481 0389
Cenkos Securities plc (NOMAD)
Neil McDonald	nmcdonald@cenkos.com	Tel: +44 (0) 131 220 9771
Beth McKiernan	bmckiernan@cenkos.com	Tel: +44 (0) 131 220 9778
Nick Tulloch	ntulloch@cenkos.com	Tel: +44 (0) 131 220 9772
St Brides Partners Ltd (Public Relations Adviser)
Hugo de Salis	hugo@stbridespartners.co.uk	Tel: +44 (0) 20 7236 1177
Elisabeth Cowell	elisabeth@stbridespartners.co.uk	Tel: +44 (0) 20 7236 1177
Lottie Brocklehurst	lottie@stbridespartners.co.uk	Tel: +44 (0) 20 7236 1177

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLLFFFTFIDLIR