Page 10 - AsianOil Week 24
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AsianOil OCEANIA AsianOil
Armour sells stake in Queensland
CBM project to APLNG
PROJECTS & AUSTRALIA Pacific LNG (APLNG) is set to
COMPANIES buy out its junior partner in their coal-bed meth-
ane (CBM) development project in Queensland’s
Surat Basin.
Armour Energy said on June 18 that it
had agreed to sell its 10% stake in Petroleum
Lease 1084 (PL1084) to APLNG for AUD4mn
($2.75mn).
APLNG already owns 90% of the 18-square
km licence, which is located 22 km south‐west of
Chinchilla and adjoins APLNG’s Talinga project.
Armour said that under the terms of a sale
and purchase agreement (SPA), APLNG will
pay an initial deposit of AUD500,000 ($343,000)
within five business days of the SPA’s execution,
with the remaining AUD3.5mn ($2.41mn) to be
paid once certain conditions have been satisfied.
The junior added that it would return the deposit
if the deal were not completed within six months
and that the joint venture would continue as is. The developer intends to hold a share place-
The Queensland government granted ment for institutional investors to raise around
PL1084 in March, replacing the authority to AUD3.36mn ($2.31mn) and has the option to
prospect 2046 (ATP2046) that it had awarded in hold a conditional placement to raise another
July 2019. AUD2.1mn ($1.44mn). Armour also intends to
Armour’s chairman Nick Mather said: “[T]he hold a one-for-three entitlement offer to raise as
board has taken the decision to sell its interest in much as AUD4.53mn ($3.11mn).
the project in order to focus its resources, both The additional funding will help the com-
technical and financial on Armour’s highly pro- pany continue to develop its Kincora project in
spective 100% owned and operated assets and to Queensland, which has just seen its proven and
allow for further debt reduction.” probable (2P) gas reserves upgraded by 22%.
Armour announced on June 15 that it Armour said on June 12 that the successful
was seeking to raise up to nearly AUD10mn hydraulic stimulation of Myall Creek5 A, the
($6.87mn) to help cover its exploration drilling of Horseshoe 4 and ongoing geologi-
expenses, debt servicing and general working cal and reservoir studies across the project had
capital needs. contributed to Kincora’s reserves being elevated
from 123.6 petajoules (3.22bn cubic metres)
at the end of 2018 to 150.3 PJ (3.92 bcm) at
the end of 2019. The company added that the
reserve figures had been evaluated in accord-
ance with the Society of Petroleum Engineers
– Petroleum Resources Management System
(SPE‐PRMS) and had been independently
certified.
The new funding also comes as Armour
gears up to acquire Oilex’s assets in the West-
ern and Northern Flanks of the Cooper Basin.
The developer said on June 15 that it had
signed an SPA with Oilex for the acquisition
of a 79.33% interest in petroleum exploration
licences (PELs) 112 and 144, which cover 1,086
square km and 1,166 square km respectively,
as well as an option to acquire the remaining
20.66% interest in each. It will also acquire
a 100% interest in 27 petroleum retention
licences (PRLs) covering 2,445 square km,
which includes 792 square km of 3D seismic,
by assuming Oilex’s obligations under existing
arrangements with Senex Energy.
P10 www. NEWSBASE .com Week 24 18•June•2020
