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AsiaElec GAS-FIRED GENERATION AsiaElec

Armour sells stake in Queensland

CBM project to APLNG

AUSTRALIA AUSTRALIA Pacific LNG (APLNG) is set to AUD3.36mn ($2.31mn) and has the option to
buy out its junior partner in their coal-bed meth- hold a conditional placement to raise another
ane (CBM) development project in Queensland’s AUD2.1mn ($1.44mn). Armour also intends to
Surat Basin. hold a one-for-three entitlement offer to raise as
Armour Energy said on June 18 that it much as AUD4.53mn ($3.11mn).
had agreed to sell its 10% stake in Petroleum The additional funding will help the com-
Lease 1084 (PL1084) to APLNG for AUD4mn pany continue to develop its Kincora project in
($2.75mn). Queensland, which has just seen its proven and
APLNG already owns 90% of the 18-square probable (2P) gas reserves upgraded by 22%.
km licence, which is located 22 km south‐west of Armour said on June 12 that the successful
Chinchilla and adjoins APLNG’s Talinga project. hydraulic stimulation of Myall Creek5 A, the
Armour said that under the terms of a sale drilling of Horseshoe 4 and ongoing geologi-
and purchase agreement (SPA), APLNG will cal and reservoir studies across the project had
pay an initial deposit of AUD500,000 ($343,000) contributed to Kincora’s reserves being elevated
within five business days of the SPA’s execution, from 123.6 petajoules (3.22bn cubic metres) at
with the remaining AUD3.5mn ($2.41mn) to be the end of 2018 to 150.3 PJ (3.92 bcm) at the end
paid once certain conditions have been satisfied. of 2019. The company added that the reserve
The junior added that it would return the deposit figures had been evaluated in accordance with
if the deal were not completed within six months the Society of Petroleum Engineers – Petroleum
and that the joint venture would continue as is. Resources Management System (SPE‐PRMS)
The Queensland government granted and had been independently certified.
PL1084 in March, replacing the authority to The new funding also comes as Armour gears
prospect 2046 (ATP2046) that it had awarded in up to acquire Oilex’s assets in the Western and
July 2019. Northern Flanks of the Cooper Basin.
Armour’s chairman Nick Mather said: “[T]he The developer said on June 15 that it had
board has taken the decision to sell its interest in signed an SPA with Oilex for the acquisition
the project in order to focus its resources, both of a 79.33% interest in petroleum exploration
technical and financial on Armour’s highly pro- licences (PELs) 112 and 144, which cover 1,086
spective 100% owned and operated assets and to square km and 1,166 square km respectively,
allow for further debt reduction.” as well as an option to acquire the remaining
Armour announced on June 15 that it 20.66% interest in each. It will also acquire
was seeking to raise up to nearly AUD10mn a 100% interest in 27 petroleum retention
($6.87mn) to help cover its exploration licences (PRLs) covering 2,445 square km,
expenses, debt servicing and general working which includes 792 square km of 3D seismic,
capital needs. by assuming Oilex’s obligations under existing
The developer intends to hold a share place- arrangements with Senex Energy.™
ment for institutional investors to raise around

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