From Mako to Bitcoin: AIM's week of doublings and deals

Empyrean Energy PLC (AIM:EME, FRA:E1E) is a small oil and gas explorer with interests spread across Australia, Indonesia and the United States.

For years its big prize has been Mako, a gas field off Indonesia, but the nagging fear was how a minnow like Empyrean would ever fund its share of the development.

This week that worry lifted. The field's operator has completed the sale of a 75% stake to an Indonesian partner, and crucially that deal means Mako is now fully funded, with first gas targeted for the end of 2027. No need for Empyrean to tap shareholders for more cash.

Better still, Empyrean keeps a back-door stake, entitling it to 8.5% of the cash flowing from gas sales once production starts. It also pockets a $4 million payment now, with $7 million more to come.

In short, the risk has shrunk while the potential reward remains, and the shares have doubled.

Market mood

Turning to the wider market, it was another grim week for the AIM All-Share, which dropped 1.5% as investors continue to retreat from this riskier end of the market. It mirrored the decline of the FTSE 100, which fell 1.6% amid an escalation in hostilities between the US and Iran.

The UK continues to be the bargain aisle for private equity. Eleco PLC (AIM:ELCO), a maker of software for the construction industry, is the latest small-cap to be added to the basket. Accel-KKR is paying just under £208 million for the business, a huge premium to the price before the recommended deal was announced, prompting a 70% jump in the share price.