EEG – Morgans rates the stock as Buy

The target price for Empire Energy Group (EEG) is increased to $1.14 from $0.643. Morgans valuation is driven by the prospective resource base of EEG, after a transformative deal for the company.

EEG has acquired the interests of Pangaea Resources, and potentially its joint venture partner, to roughly treble the amount of Prospective Resource in the Northern Territory.

The deal is structured as a combination of scrip, cash and options in EEG, with Pangaea Resources holding a 24% ownership in EEG. $30m of new equity raised will go towards funding two development wells. The Speculative Buy rating is unchanged.


Target price is $1.14.Current Price is $0.31. Difference: $0.83 – (brackets indicate current price is over target). If EEG meets the Morgans target it will return approximately 73% (excluding dividends, fees and charges – negative figures indicate an expected loss).



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