Page 13 - AsianOil Week 17 2021

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have the funds needed to finance the proposal
and that its board of directors would not approve
a bidder’s statement.
Remus, for its part, had not commented
on the matter as of press time. The investment
fund is a petroleum-focused subsidiary of Hong
Kong-based Remus Corp.
According to previous reports, FAR received Image: FAR
an off-market proposal from Remus on April
14, one day before a scheduled general meeting The terms of that sale are spelled out in a
of shareholders. It pushed the date of the meet- sales and purchase agreement (SPA). Under
ing back to April 28 to allow for consideration that document, FAR will sell its stake in RSSD
of the investment fund’s offer to pay AUD0.021 to Woodside for $45mn plus reimbursement for
per share, or AUD209.6mn ($163.2mn) in total, its own share of working capital in the project,
for 100% of the Australian firm’s equity, provided including cash calls, between January 1, 2020,
that the latter did not sell its minority stake in the and the date the transaction is concluded, along
Sangomar project. with the right to collect certain contingent pay-
FAR has indicated previously that it favours the ments in the future.
sale of its stake in Sangomar to Woodside Energy, RSSD’s licence area comprises three separate
the Australian company that is already the majority fields – Rufisque, Sangomar Offshore and San-
owner of the RSSD joint venture set up to explore gomar Deep Offshore, which collectively give
and develop the block. FAR said last November the joint venture its name. Oil was discovered at
that it intended to sell its stake to ONGC Videsh the block in 2014, which is estimated to contain
Vankorneft, a subsidiary of India’s ONGC Videsh 645mn barrels of oil equivalent in recoverable
Ltd (OVL), but Woodside exercised its right to pre- reserves, including 485mn barrels of crude oil
empt the deal, and the Australian firms formalised and 160mn boe of natural gas. Woodside hopes
plans for the sale in January 2021. to begin production in 2023.™

Armour announces NT resource

update ahead of asset spinoff

FINANCE & AUSTRALIAN independent Armour Energy Armour believes the value of its North-
INVESTMENT has announced the independent confirmation ern Basin business is “unrecognised”
of a resource estimate for its Northern Territory within its current market capitalisation
assets as it prepares to spin off the fields. and hopes to unlock this value through
Armour said on April 27 that independent the McArthur spin-off and initial public
reserves auditor Netherland, Sewell & Associates Inc. offering (IPO).
(NSAI) had prepared an updated resource assessment The developer said Falcon Oil & Gas Ltd
that confirmed the prospective resource best esti- (FOGL), Empire Energy and Tamboran
mate of around 33 trillion cubic feet (935.56bn cubic Resources enjoyed an implied in-the-ground
metres) from the conventional and unconventional prospective resource valuation of AUD6.37
structures in the McArthur Basin. ($4.95) per TJ, AUD9.09 ($7.06) per TJ and
NSAI upgraded the best estimate conven- AUD27.03 ($21) per TJ respectively. Armour
tional prospective resources and conventional and McArthur, however, are valued at AUD1.42
3C contingent gas resource to 4.6 tcf (130.27 ($1.10) per TJ and AUD3.03 ($2.35) per TJ
bcm) and 53bn cubic feet (1.5 bcm) respectively. respectively, based on the proposed terms of
Armour CEO Brad Lingo said the company their demerger and McArthur’s initial public
had decided to revisit the resource estimates offering (IPO).
ahead of the planned spin-off of its NT assets. McArthur will use the IPO and a
Lingo said: “There have been movements in AUD65mn ($50.5mn) capital raise to buy
the conventional and unconventional resources, Armour’s assets, with the latter expect-
but overall, the quantum of resource remains con- ing to receive a total cash consideration of
sistent with earlier estimates, which confirms the AUD40mn ($31.8mn) as well as a minimum
opportunity available for McArthur Oil & Gas.” of 33.3% in the newly listed company.™

Week 17 29•April•2021 www. NEWSBASE .com P13