PERTH (miningweekly.com) – ASX-listed Empire Oil & Gas has placed its subsidiary Empire Oil Company into voluntary administration, after ASX-listed Mineral Resources issued a notice of default under a A$15-million loan facility agreement.
Mineral Resources this week said that it took the steps in order to protect its interest, following consideration of the ongoing interruption to production at the Red Gully 1 well, owned by the Empire subsidiary, as well as consultation with the board of Empire Oil & Gas.
Since production at Red Gully started in 2013, the facility has delivered more than 10 000 TJ of gas, which has been delivered to Alcoa through the Dampier to Bunbury natural gas pipeline.
Empire Oil & Gas said on Friday that following the notice of default from Mineral Resources, as well as further discussions, the directors of Empire Oil were left with no choice but to appoint administrators.
“The decision comes despite the company and Empire Oil subsidiary making significant and urgent efforts to explore the available options on retaliation to the Red Gully 1 well, and the Empire Oil subsidiary’s business and assets.”
Empire Oil & Gas told shareholders that the company would continue to assess options available to it, considering the decision to appoint administrators to Empire Oil.