LONDON (ShareCast) - Texas-focused Empyrean Energy has put itself up for sale as part of a strategic review to maximise value for shareholders.

Empyrean, which has appointed Macquarie Capital to conduct the formal sale process only with broker Cenkos Securities overseeing, stressed that it had not yet received any approach regarding the sale of the company.

Management has decided to consider other strategic options in light of "increased levels of corporate activity and industry interest in the region and to maximise value for its shareholders".

It said options may include a farm down or disposal of its assets, principal of which is the Sugarloaf project in Texas's prolific Eagle Ford Shale, or a corporate transaction such as a merger or a sale of the business.

Broker SP Angel said: “Over its history, the company has faced significant headwinds, but the recent strength in the share price is in part a reflection of the fact that the management team have rectified some of the perceived weaknesses within the business.

"This, along with the burgeoning interest in the Eagle Ford shale, means that the timing of this announcement is opportune, and makes it more likely that an acceptable price is achieved."

Empyrean shares were up 12.7% to 20p by 16:00 on Friday, a five year high.


OH

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE