Empire told the market that Kimberley Oil has entered into a conditional farmin agreement to acquire a 10% interest in the permit. Other stakeholders in the permit include Hardman Resources (2%), Rawson Resources (25%), Kimberley Oil (10%) and Longreach Oil (10%) and Empire itself at 53%.

Under terms of the agreement, Kimberley can earn its interest by funding 13.33% of the costs of the proposed Leschenault-1 well to be spudded around February next year. Empire said after this deal 59.85% of the well costs will have been farmed out.

The Leschenault Prospect is located on a large structure with interpreted four way dip closure, with the primary target relatively shallow at about 850m below surface.

The target size is interpreted by Empire from seismic and well data to be approximately 100 million barrels of oil in place or if gas approximately 100-180 billion cubic feet of gas. Empire considers the structure prospective for oil with the potential for it to also be gas charged.