- Armour Energy (AJQ) has agreed to sell its 10 per cent interest in the Murrungama block to Australia Pacific liquefied natural gas (LNG) for $4 million
- The companies entered a joint venture and was granted the petroleum licence by the Queensland Department of Natural Resources, Mines and Energy
- Australia Pacific will pay an initial $500,000 over the next five business days and a further $3.5 million within six months
- Armour claims it wants to refocus its technical and financial resources on its wholly-owned and operated assets
- Company shares closed in the grey to trade for 2.8 cents each
Armour Energy (AJQ) has entered a sale and purchase agreement with Australia Pacific LNG (APLNG) to sell its 10 per cent interest in Murrungama block (PL1084).
This petroleum licence is an 18 square kilometre coal seam gas exploration area located within the Surat Basin of Queensland and 22 kilometres southwest of Chinchilla and adjoins APLNG’s Talinga Project.
Armour has agreed to sell its interest for a total of $4 million.
Under the terms of the agreement, APLNG will pay an initial $500,000 within five business days of securing the agreement. A further $3.5 million is payable to Armour once certain customary conditions are satisfied.
If these conditions aren’t completed within six months, Armour will need to refund the deposit. The transfer of the 10 per cent interest will not be affected and the joint venture will remain intact.
Armour and APLNG were awarded Authority to Prospect – 2046 (ATP 2046) in July last year after a successful joint venture bid. The Queensland Department of Natural Resources, Mines and Energy subsequently granted PL1084 over the former ATP 2046 in March this year.
Armour has chosen to sell its 10 per cent interest to focus on its wholly-owned and operated assets.
“We are thankful to APLNG for the opportunity to work together on the project, and look forward to continuing our relationship in the future including through the ongoing Gas Sales Agreement with APLNG from Armour’s Kincora Gas Project,” Chairman Nick Mather said.
Company shares closed in the grey to trade for 2.8 cents each in a $16.53 million market cap.