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After these appraisal wells the Company 10.07 million acres. Under the Farmin million to the Company upon the award of
will move to new potential CBM hosting Agreement, Santos has the right to earn a the permits on terms satisfactory to Santos
sub-basins in the PSC to drill stratigraphic 70% interest in Armour’s North Queensland and the subsequent approval of the transfer of
exploration wells. Well locations will be tenements, being ATP1087 (granted), and the permit interests for the Application Areas
determined post the current 2D seismic the application permit areas in Queensland to Santos.
program and will incorporate the findings of ATP1107, ATP1192 and ATP1193 and the Pursuant to the Farmin Agreement
both of the 2019 and 2020 seismic programs Northern Territory tenements EP172 and Amendment, Santos will make a one‐off,
and more recent field work. EP177. unconditional accelerated cash payment of
ELIXIR ENERGY, July 29, 2020 Under the Farmin Agreement, Santos has $A6 million in total in full consideration
committed to free carry Armour for farmin of all future contingent permit transfer
programme expenditures on all tenements of payments covering the Application Areas.
OCEANIA up to a capped amount of A$64.9 million – The accelerated payment will be made by
the Total Capped Amount. Under the original Santos by 31 July 2020. In conjunction with
Acceleration of Contingent terms of the Farmin Agreement, the Total this unconditional payment, Santos will lead
all activities and negotiations (including
Capped Amount was required to be allocated
Farmin Payments from to defined farmin programme activities and Native Title negotiations) and assume the
responsibility and expense for pursuing the
expenditure amounts across each of the
Santos Farmin Permits including the Application award of the outstanding Application Areas.
Areas.
This accelerated payment is not subject to the
The Directors of Armour Energy are pleased With a view to providing greater flexibility, previous obligations of being subject to refund
to announce a significant amendment to the and an accelerated pathway to demonstrating if the transfer of an interest in any of the
Farmin Agreement between the Company the resource potential of the South Nicholson Application Areas is not approved, or if the
and Santos QNT, a wholly‐owned subsidiary Basin Project, Santos and the Company permit conditions on award are not acceptable
of Santos, covering the South Nicholson have agreed to amend the Carried Work to Santos. Under the current operational
Basin Project. These amendments are aimed Programme. Santos’ commitment to free impacts stemming from the COVID‐19
at accelerating the permit award process carry Armour for the amended Carried Work pandemic, the Company estimates that the
and the crystallization and acceleration of Programme expenditure across the tenements timeframe required to complete the activities
contingent permit transfer payments to up to a capped amount of A$64.9 million necessary to secure the award of each of the
the Company. The Company refers to the remains unchanged. Application Areas (including all of the Native
previous ASX announcement of 4 December Under the original Farmin Agreement, the Title and land access negotiations) would
2019 announcing the completion of the South Company retained the obligation and costs likely have been a further 3 to 4 years, and
Nicholson Basin Farmin Agreement with associated with securing the award of each would have required further expenditures by
Santos. of the Application Areas, and Santos had the Armour in excess of $500,000 to $750,000 per
Armour’s South Nicholson Basin conditional obligation to potentially make annum.
exploration project area covers approximately contingent payments totalling up to A$15 ARMOUR ENERGY, July 27, 2020

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