Page 16 - GLNGl Week 24
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GLNG AUSTRAL ASIA GLNG
APLNG already owns
90% of the 18-square
km licence.
Armour sells stake in Queensland
CBM project to APLNG
INVESTMENT AUSTRALIA Pacific LNG (APLNG) is set to placement for institutional investors to raise
buy out its junior partner in their coal-bed meth- around AUD3.36mn ($2.31mn) and has the
ane (CBM) development project in Queensland’s option to hold a conditional placement to raise
Surat Basin. another AUD2.1mn ($1.44mn). Armour also
Armour Energy said on June 18 that it intends to hold a one-for-three entitlement offer
had agreed to sell its 10% stake in Petroleum to raise as much as AUD4.53mn ($3.11mn).
Lease 1084 (PL1084) to APLNG for AUD4mn The additional funding will help the com-
($2.75mn). pany continue to develop its Kincora project in
APLNG already owns 90% of the 18-square Queensland, which has just seen its proven and
km licence, which is located 22 km south‐west of probable (2P) gas reserves upgraded by 22%.
Chinchilla and adjoins APLNG’s Talinga project. Armour said on June 12 that the successful
Armour said that under the terms of a sale hydraulic stimulation of Myall Creek5 A, the
and purchase agreement (SPA), APLNG will drilling of Horseshoe 4 and ongoing geologi-
pay an initial deposit of AUD500,000 ($343,000) cal and reservoir studies across the project had
within five business days of the SPA’s execution, contributed to Kincora’s reserves being elevated
with the remaining AUD3.5mn ($2.41mn) to from 123.6 petajoules (3.22bn cubic metres) at
be paid once certain conditions have been sat- the end of 2018 to 150.3 PJ (3.92 bcm) at the end
isfied. The junior added that it would return the of 2019. The company added that the reserve
deposit if the deal were not completed within six figures had been evaluated in accordance with
months and that the joint venture would con- the Society of Petroleum Engineers – Petroleum
tinue 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 arrangements with Senex Energy.
P16 www. NEWSBASE .com Week 24 19•June•2020
