Empire Oil & Gas subsidiary Empire Oil Company has entered voluntary administration shortly after going into receivership.
The Empire subsidiary entered receivership yesterday after lender Mineral Resources issued the company a default notice for a $15 million loan and a deed of appointment of receivers and managers.
Deloitte was then appointed as receivers and managers of some of the assets, particularly those related to the Red Gully gas project in Western Australia.
Production at the Red Gully-1 well was suspended earlier this year to conduct a planned static pressure survey, and the company had expected to bring it back online.
However, Empire Oil & Gas today said it had “no choice” but to appoint the administrators following discussions with Mineral Resources.
“The decision comes despite the company and Empire Oil subsidiary making significant and urgent efforts to explore the available options in relation to the Red Gully-1 well and the Empire Oil Subsidiary’s business and assets,” Empire Oil & Gas said.
“The directors of the company and the Empire Oil subsidiary very much regret that these circumstances have come to pass.”
Andrew Smith, Peter McCluskey and Martin Jones from Ferrier Hodgson were selected as voluntary administrators and will work with Empire Oil’s stakeholders while conducting a financial and operational assessment of the business.