Armour Energy Ltd

Armour was removed from the ASX official list from the close of trading on 28 August 2024 for not paying its annual listing fees. This ends its listing, well before the 10 November 2025 long-suspension deadline; the liquidation continues.

registration revoked

Creditors voted on 19 January 2024 to wind up Armour, with liquidators appointed. Operating subsidiaries, with the Surat, Otway and Cooper assets, were sold to ADZ Energy on 22 January under a deed of arrangement. Armour keeps only residual assets, such as its Conjugate and Auburn stakes.

bankruptcy or receivership

ASX suspended Armour securities from quotation under Listing Rule 17.3 following the appointment of receivers, managers and voluntary administrators.

listing compliance notice

KordaMentha receivers and managers, and McGrathNicol voluntary administrators, were appointed to Armour and seven subsidiaries on 10 November 2023. Operations continue while a sale of the group is sought. This follows the Secured Note default and the Shunkang takeover talks.

bankruptcy or receivership

Armour is negotiating a cash takeover by Shunkang via scheme of arrangement, now in due diligence with no agreement reached. It missed the $2.75m Secured Note principal payment due 29 September, creating a default, and seeks noteholder deferral. This updates the August Shunkang approach.

business combination

DGR and Armour set up UK-incorporated Conjugate Energy to hold Ugandan Albertine Graben licences (Turaco and Kanywataba, in which Armour holds 17%), and plan a UK listing to fund two 2024 oil wells. Claimed prospective resource is about 3.158 billion barrels; listing is uncertain.

joint venture update

Armour received a non-binding, conditional expression of interest from China's Shunkang Holding Group to buy 100% at $0.13-$0.15 cash per share. The board called it inadequate, well below recent raisings and trading prices. No action is needed from shareholders.

business combination

Secured Noteholders approved amendments with 80.37% support. These bring a 3% interest increase, repayment in full by 30 November 2023, waivers of current breaches and consent to the convertible notes. The deferred $2.75m principal payment was paid. Clears the way to issue the convertible notes.

debt financing

Armour will consolidate its shares 50-to-1, taking about 4.92bn shares to about 98.4m. Trading in the new shares starts on a deferred basis on 8 August. Option exercise prices rise 50-fold, for example from 5c to $2.50. Shareholders approved this at the 2 August meeting.

security holder rights change

Corporate update: Secured Note debt is about $17.2m, with full repayment proposed by 30 November 2023. The EGM is on 2 August. Surat plans shift from fracture stimulations to new wells targeting 10 TJ/d, and Enterprise North-1 slips to the second half of 2024. A McArthur farm-out or sale is planned.

investor presentation

Retail entitlement offer raised only about $0.7m (181m shares at $0.004). Total existing-holder take-up was about $3.6m, roughly 39%. A shortfall of about 1.4bn shares ($5.7m) falls to underwriters and sub-underwriters, including director-linked entities. Offer was fully underwritten by Wilsons.

capital raising announcement

Armour completed the institutional part of its raising: about $2.7m placement (663.3m shares) and $2.9m institutional entitlement offer (722.9m shares), both at $0.004. DGR, Tenstar and Bizzell-affiliated entities backed it. The retail offer, up to about $6.4m, closes 20 April.

capital raising announcement

Armour launched a fully underwritten $32.0m recapitalisation: $2.7m placement and $9.3m 1-for-1 entitlement offer, both at $0.004 (33.3% discount), plus $20.0m convertible notes needing shareholder and Secured Noteholder approval. Proceeds cut Secured Note debt, refinance MOG notes and fund production work and Enterprise North planning.

capital raising announcement

Armour signed a Master Sales Agreement with Shell Energy Australia and an initial 13-month gas sales agreement from 1 December 2023, as the APLNG contract ends. December 2023 price is $12/GJ, with a higher 2024 price. Shell may also explore using Newstead storage (up to 7.9 PJ).

material agreement

Non-binding Heads of Agreement to supply Glyde gas (EP 171, NT) to Lucapa's Merlin Diamond Project for 14 years from mid-2025, at least 7 PJ. This would be first McArthur Basin production, but a full contract and conditions precedent are still needed.

material agreement

DGR Global provided a further $2.4m via McArthur exchangeable notes. Tribeca bonding facility was repaid in full on 15 Nov, so the proposed 72.5m share and 12.1m option issue to Pecal was withdrawn from the AGM. New gas sales talks for post-APLNG supply are at higher prices.

debt financing

Armour raised $4.64m via McArthur exchangeable notes (DGR $4.0m, Bizzell $0.3m, BAM $0.34m) plus a Tenstar placement of 51.45m shares at $0.0065. Secured Notes fell to $22.4m. Tribeca bonding debt (about $1.7m left) has a standstill to 15 Nov. Surat in-well-bore work continues.

capital raising announcement

Armour says the Enterprise North prospect in PEP 169 (51%, operator; Lakes Blue 49%) is drill ready after seismic reinterpretation. It estimates a prospective resource of up to 419 Bcf gas in place. Rig, approvals and access work are underway; no spud date given.

drilling scheduled

Christian Lange, a former Schlumberger executive and ex-CEO of Neptune Marine Services, is appointed CEO from 25 July 2022. This fills the role vacant since Brad Lingo resigned on 4 April. Base pay is $480,000, with 40 million options.

director officer appointment

Armour secured a $4.5m facility from largest shareholder DGR Global, via exchangeable notes drawn over three months. Secured Notes fell to $24.9m after a $2.2m payment. Debt refinancing is planned; ATO feedback says demerger tax relief is unlikely. Warroon-1 peaked near 600 MSCFD.

debt financing

Armour agreed binding terms to sell its 46.25% Waldegrave JV and 25% Snake Creek East JV interests to PZE for $1.99m, mostly payable within 6 months and subject to approvals. PZE will fund up to $300k of an emissions study and toll gas through Kincora.

asset acquisition disposition

Noteholders approved the amendments with 85% by value in favour, against 75% needed. Possible covenant breaches are waived, covenants are reset, and the bonding facility date is extended. This removes the immediate risk of a redemption demand raised on 11 April.

debt default or forbearance

Armour asks holders of its Secured Amortising Notes ($27.1m outstanding) to waive possible past breaches of debt service and leverage covenants, loosen those covenants, raise a debt limit and extend the bonding facility date. Needs 75% by value; failure could allow redemption demands.

debt default or forbearance

CEO Brad Lingo resigned effective immediately, with no replacement named. Executive Chairman Nick Mather and the CFO, COO and CCO will lead in the interim. He was also a transitional director of McArthur, whose demerger is still pending.

director officer appointment

Gas2Grid will not proceed with the binding farm-in over 519 km2 of Surat acreage, citing commercial issues over securing tenure during the earn-in. The deal that would have funded over $12m of work is dead; Armour will keep pursuing the acreage.

farm in farm out agreement

Gas2Grid says it and Armour have ended attempts to finalise binding agreements for the Surat farm-in proposed on 22 November 2021. This is the counterparty's notice, duplicating Armour's own release the next day.

farm in farm out agreement

Armour agreed non-binding terms for Gas2Grid to earn 50% of 519 km2 of Surat acreage (Riverside and Myall-Bainbilla) by funding over $12m: three wells, fracture stimulation and 100 km2 of 3D seismic. Binding documents are due within three months. This is the Surat farm-in partner search progressing.

farm in farm out agreement

Armour secured Stonehorse (ASX:SHE) and a private entity to fund 100% of Myall Creek 2 perforation and stimulation of the lower Tinowon, from December 2021. They fund $1.5m, then $1.4m more, for 50% of well revenue less costs for six years. Answers Armour's search for Surat partners.

farm in farm out agreement

Morgans is appointed lead manager for the McArthur Oil & Gas IPO, now expected in Q1 2022, later than the earlier December 2021 quarter target. Demerger still needs shareholder, ASX, financier and ATO approvals.

material agreement

Armour raised $8.2m in a placement at 2.6c, a 21% discount, with one free 5c option per three shares. $1.6m, including DGR's commitment, needs shareholder approval. Funds go to demerger costs, tenure compliance, plant upkeep and note payments.

capital raising announcement

Armour will re-stimulate Warroon 1 from mid-October 2021 after the November 2020 frac failed from a gel problem, now in dispute with the contractor. A private investor funds the roughly $700k cost for 50% of incremental revenue over six years. Mediation with the contractor has failed so far.

drilling scheduled

Force majeure on the Uganda Kanywataba licence is lifted and a 100 km infill 2D seismic survey will restart, taking about three months. The licence term, due to expire 13 September 2021, extends into 2022 or 2023, resolving the expiry thread. Armour's share is 16.82%.

regulatory community update

The NT government approved transfer of Armour's Northern Territory exploration permits (six granted, 52,592 km2, all 100%) into McArthur NT Pty Ltd. This resolves the pending permit-transfer approval; approval to place McArthur Oil & Gas above that subsidiary is still expected.

regulatory community update

Armour completed the sale of Ripple Resources to unlisted Auburn for 5.6m Auburn shares, about 12.5% of Auburn. It becomes a passive investment and lets management focus on core oil and gas. Completes the 12 March agreement.

asset acquisition disposition

Independent estimate (NSAI) puts McArthur Basin prospective resources at about 33 Tcf best estimate, with conventional prospective up to 4.6 Tcf and contingent resource 53 Bcf (3C). Supports the planned McArthur Oil & Gas demerger and IPO of $65m; gas sales are targeted from late 2022.

resource reserve update

Noteholders approved the covenant amendments, with 85% by value in favour against 75% needed. Documentation is due 6 April. This resolves the 23 March request and removes the covenant-breach risk Armour flagged for 31 March.

debt financing

Armour asked noteholders to relax covenants so the McArthur demerger can proceed, citing lower-than-expected uplift from the late 2020 work programme. Without approval it may breach covenants at 31 March, which could force note redemption. Needs 75% by value; vote closes 29 March.

debt financing

Armour raised $11.5m via placement at 3.5c, a 12.5% discount, with one free 5c option per four shares. $8.8m is immediate; $2.7m needs shareholder approval and includes directors and DGR. Funds the McArthur demerger costs, Kincora work and note payments.

capital raising announcement

Armour proposes to demerge its Northern Basin business into a new ASX-listed McArthur Oil & Gas, backed by a $60-65m IPO. Armour would receive $40m cash to retire debt, and shareholders would keep at least 33.3%. Needs shareholder approval.

business combination

Armour lodged retention licence applications covering 491 km2 of its EP171 and EP190 McArthur Basin permits, over the Glyde and Cow Lagoon gas discoveries. It is a step toward production licences; early gas sale talks target sales from late 2022.

regulatory community update

The Santos sale of the remaining South Nicholson interests completed, with Armour receiving about $12.16m cash and keeping 100% of ATP(A) 1107. About $6.08m will go to unscheduled repayment of the amortising notes, resolving the 22 December deal.

asset acquisition disposition

Armour signed a binding term sheet to sell its remaining 30% in ATP 1087 and other South Nicholson permits to Santos for about $12.25m cash ($3m now, $9.25m on conditions), keeping 100% and operatorship of ATP(A) 1107 (7,906 km2). Part of proceeds goes to debt reduction.

asset acquisition disposition

Warroon 1's stimulated Rewan zone flared at up to 700 mcf/d, which Armour calls proof of concept for a new Rewan pay zone it says could support more wells. Two plunger-lift projects added 0.2 TJ/d. Horseshoe 2 and 4 flow data is due from the week of 14 December.

well test result

Toni Hawkins, previously General Manager Finance at Senex, joins as permanent Chief Financial Officer from 1 December 2020. She replaces acting CFO Erin Clark, closing the CFO vacancy since Richard Aden left about five months earlier.

director officer appointment

Armour completed the CoEra purchase from Oilex: about 79.33% of PEL 112 and PEL 444 (it exercised the option on the rest), plus 27 Senex PRLs covering 2,445 km2. It paid 24.5m shares, with up to 10m more via a 60-day price adjustment. Armour targets 3-5 drill-ready prospects by end of 2021.

asset acquisition disposition

After the EGM approved the placements, Armour upsized its conditional placement to about $7m, taking the total raise to about $15m (from about $10m). DGR Global plans to keep about 19%, subject to AGM approval. Funds go to Surat stimulation, Cooper exploration and Newstead gas storage restart.

capital raising announcement

Surat work program began at Kincora with workover on Horseshoe 4, the first hydraulic stimulation in the field. Three wells (Horseshoe 4, Horseshoe 2, Warroon 1) are due online by end November; three more in the first half of 2021. Lingo targets 20 TJ/d.

drilling scheduled

Armour says the $10m of asset transactions is complete, after the $4m APLNG sale closed that Monday. Total note repayments in six months are $9.15m, and it says it is pursuing further commercial opportunities.

asset acquisition disposition

Term sheet to sell Ripple Resources (lead-zinc tenements in Qld and NT) to unlisted Auburn for 5.6m Auburn shares, leaving Armour with about 12.5%. Subject to due diligence, approvals and possible noteholder consent. Auburn is 44% owned by DGR Global, a major Armour shareholder.

asset acquisition disposition

Armour has received Santos's $6m and expects APLNG's $4m for PL1084 on 17 August. It will make $5.3m early principal payments on the secured notes, bringing repayments in six months to $9.15m and the balance to $45.85m.

debt financing

The retail entitlement offer drew only $433,543 in applications; with institutions, existing holders took up $2.19m in total. Underwriter Bizzell Capital Partners must cover a $2,337,889 shortfall, so the raising relied heavily on its underwriter.

capital raising announcement

Santos amended the South Nicholson farm-in: it pays Armour $6m unconditionally by 31 July 2020, replacing up to $15m of contingent permit payments, and takes over pursuing the outstanding permit awards. The $64.9m free carry is unchanged. Armour says this, with the PL1084 sale, meets its raising's asset-proceeds target.

farm in farm out agreement

Early results of the 2.3c raising: over $8m secured, including $1.84m from institutions in the entitlement offer and $3.52m of placement commitments ($0.9m needs shareholder approval). The $2.69m retail portion is underwritten; the target is up to $10m.

capital raising announcement

Armour agreed to sell its 10% of the PL1084 Murrungama gas block to APLNG for $4m ($0.5m deposit, $3.5m on completion). It said the sale lets it focus on its 100%-owned assets and reduce debt. This reverses the earlier plan to develop PL1084 with first gas in 2021.

asset acquisition disposition

Armour launched a raising at 2.3c per share: a ~$3.36m placement, a ~$4.53m underwritten 1-for-3 entitlement offer, and up to $2.1m more in a conditional placement. One free option per two shares (5c, to Feb 2024). Funds go to Kincora work and note payments.

capital raising announcement

Armour signed the share sale agreement to buy CoEra (Oilex's Cooper Basin assets) for 24.5m to 34.5m shares, targeting $906,500 of value. Brad Lingo started as CEO; CFO Richard Aden resigned and is serving his notice. Completion still needs approvals.

director officer appointment

Kincora 2P gas reserves rose 22% to 150.3 PJ (as at 31 December 2019), with 2P condensate 1.49 million bbl and 2P LPG 310,000 t. Armour credits the Myall Creek 5A stimulation and Horseshoe 4. Up from the 123.6 PJ booked a year earlier.

resource reserve update

Armour signed a conditional term sheet to buy Oilex's Cooper Basin assets: about 79.33% of PEL 112 and PEL 144, plus 27 retention licences. Consideration is 24.5m to 34.5m Armour shares, and Brad Lingo is to become CEO. It needs due diligence and a share sale agreement.

asset acquisition disposition

Citing COVID-19, Armour will cut corporate costs by at least 35%, cut Kincora operating costs about 20%, and defer 2020 capital spending, keeping a modest second-half stimulation program. CEO Bruce Clement's tenure ended before he started; Chairman Mather takes over day-to-day management.

other

Noteholders approved the $55m note amendments with 96% by value in favour (75% needed). Covenants are relaxed, about $6m of 2020 amortisation is scheduled and the debt lock-up date is extended to 31 December 2020. Resolves the 12 March proposal.

debt financing

Bruce Clement, ex-Managing Director of Roc Oil and AWE and most recently a Santos executive, was named permanent CEO. Interim CEO Richard Fenton's role ends when he starts. This resolves the open permanent-CEO search.

director officer appointment

Armour asked holders of its $55m notes to relax covenants, citing delays, lower gas output and lower prices than expected, plus COVID-19. Proposed: about $6m of 2020 amortisation, and at least $1.65m of each Santos payment repaying notes. A planned entitlement offer of at least $5m is underwritten by Bizzell Capital.

debt financing

Queensland granted production licence PL1084 (formerly ATP2046) to the APLNG-operated joint venture, Armour 10%, less than eight months after the exploration permit was awarded. Up to 103 PJ over 30 years; gas sold to local manufacturers, first gas expected 2021.

regulatory community update

Armour booked its first oil reserves at Kincora: 2P of 1,220,600 bbl (nil before), plus 2C contingent oil of 3.7 million bbl. Four suspended oil wells are being restarted, and two oil appraisal wells are planned for late 2020 or early 2021.

resource reserve update

Horseshoe 4 flowed 1.34 MMscf/d plus condensate in a one-hour flare test from Triassic and Permian sands. It is being commissioned, and stimulation zones are identified as possible later upside. A modest result against Myall Creek 5A's 4.23 MMscf/d.

flow test result

Myall Creek 5A flow rose to 4.23 MMscf/d after flowback resumed on 4 January, and it is being connected to the sales pipeline. Horseshoe 4 workover and completion started 4 January. Builds on the 2.37 MMscf/d seen in December.

flow test result

Myall Creek 5A, stimulated in November, flowed at up to 2.37 MMscf/d with 78 bbl/d of condensate during initial flowback. The earlier May 2019 attempt had failed to sustain commercial flow. A good result for the 2019 program. The flow is to be diverted into the pipeline over the coming weeks.

flow test result

Armour received the first $15m from Santos. Myall Creek 4A is producing about 0.6 TJ/d. Horseshoe 4 completion slipped to early January 2020 and Myall Creek North 1 testing to January because of rig availability. Uganda seismic is to resume in early 2020.

production update

The formal South Nicholson farm-in with Santos was signed. Armour gets $15m within 5 business days of lodging the ATP1087 transfer application, up to $15m more on conditions, and a free carry up to $64.9m. Santos earns 70% and operatorship. This completes the October term sheet.

farm in farm out completion

Horseshoe 4 reached 2,169 m, deeper than the prognosed depth, with no further issues. Logging and pressure testing indicate multiple hydrocarbon-bearing Triassic and Permian sands. Perforation is expected in early December, with gas to market by end-2019. No flow rate yet.

drilling result

Richard Fenton, formerly Armour's General Manager, Corporate Affairs, became Interim CEO on contract. He replaces Roger Cressey, who resigned in July and has now ceased full-time work. The board is still reviewing candidates for a permanent CEO.

director officer appointment

Myall Creek North 1 logging and pressure testing found thick Tinowon sandstones with encouraging gas response, potentially with enough pressure and permeability for conventional production. Production casing is cemented; a flow test is planned in coming weeks, with gas to market expected before year end. No flow rate yet.

drilling result

Armour signed a binding term sheet for Santos to farm into its South Nicholson Basin project (ATP1087 and applications), taking 70% and operatorship. Armour gets $15m cash upfront, up to $15m more on conditions, and a free carry to $65m of spending over 4 years. Formal agreement targeted by 31 Oct.

farm in farm out agreement

Armour closed a $4m private placement of 80m shares at 5 cents, with one 8-cent option (to Sept 2023) per two shares. An entitlement offer on the same terms is planned. Funds go to the Kincora field program. This is below the recent 7c share price and is Armour's first equity raising since the $55m bond.

capital raising announcement

Myall Creek North 1 spudded in 100%-owned PL511, targeting Permian and Triassic gas to 2,270 m TVD. Horseshoe 4 follows, with Myall Creek 5A fracture stimulation run concurrently. The program is about three months, and success matters for the 20 TJ/d push.

drilling spud

CEO Roger Cressey resigned after eight years and will stay until a successor is found. A recruitment firm search has begun. He led the restart of gas production at Kincora, and the change is a leadership transition during the 20 TJ/d growth push.

director officer appointment

Queensland awarded exploration block PL2018-1B, 18 km2 near Chinchilla, to a joint venture of Armour (10%) and APLNG (90%, operator). The gas is designated for manufacturers, with first gas expected by mid-2021.

asset acquisition disposition

Myall Creek 5A flowed 2 MMscf/d from the Basal Rewan but could not sustain it as formation water entered, and the well is shut in. The CEO called it disappointing. Stimulation of other zones is planned. Myall Creek 4A was recompleted and is producing 500,000 scf/d.

well test result

Armour settled the $55m secured amortising notes and redeemed all existing convertible notes, including the M.H. Carnegie holding. This resolves the redemption pressure that began in January. The company targets 20 TJ/d during 2019 and calls the refinancing transformational.

debt financing

Armour plans to raise up to $55m through five-year secured, amortising notes at 8.75%, arranged by FIIG, to redeem all convertible notes including the M.H. Carnegie holding. DGR Global will roll $10m of its convertible notes into the new notes. This follows the 1 March mandate.

capital raising announcement

Armour agreed to redeem the M.H. Carnegie notes by 7 May 2019 at 20% interest on 110% of face value, with extension fees. Noteholders (75%) approved allowing early redemption of all notes at a 3.25% premium. Armour signed an arranger mandate for new secured notes, with $20m of cornerstone support.

debt financing

SRK-verified Kincora 2P gas reserves rose 56% since October 2018 to 123.6 PJ, with 2P condensate at 1.23m bbl. Armour says 2P gas reserves doubled over calendar 2018. Reserves are stated at 100% Armour, excluding the Waldegrave JV.

resource reserve update

M.H. Carnegie, holder of 125.8m convertible notes (the cornerstone holder), gave an irrevocable early redemption notice. Armour must pay 110% of face value (about $15.2m) plus interest, or find a buyer, within 60 days. This follows the redemption window extended to end-2018 and puts pressure on cash (about $8.5m at 31 Oct).

debt default or forbearance

Queensland formally awarded Armour ATP2034, ATP2035 and ATP2041 near the Kincora plant, confirming earlier preferred-tenderer status. The adjoining block to ATP2041 went to a Santos-Shell JV. Kincora plant is back online after maintenance at up to 10 TJ/d, with up to 15 TJ/d planned.

asset acquisition disposition

Armour's gas sales agreement with APLNG moved to Period 2: a firm 5 TJ/d for five years from 1 Dec 2018 to Dec 2023, plus a further 5 TJ/d on an as-available basis (up to 3.65 PJ/a). Output above 10 TJ/d is uncontracted.

material agreement

Myall Creek 5A was spudded in PL511 (100%), planned to 2,355 m, and is the second well of the GAP-part-funded program. It targets about 4.4 PJ of gas. Armour says production should lift to 20 TJ/d over the next 12 months.

drilling spud

SRK-verified Myall Creek 2P reserves rose 40% from 44.4 PJ to 63.1 PJ after the 4A well, replacing all historical field production of 18.7 Bcf. Total Kincora 2P reserves net to Armour are now 79.3 PJ.

resource reserve update

Myall Creek 4A began commercial production on 5 October 2018, the first well Armour has drilled and connected since buying Kincora from Origin. It averages about 700,000 scf/d, peaking at 3.5 MMscf/d, still cleaning up. This resolves the delayed September start.

production update

ATP2030 (365 sq km) was formally awarded, resolving the preferred-tenderer status announced 30 Oct 2017. It links PL71 and ATP2029 into a larger Roma Shelf position. The announcement cites a 1.7 MMcf/d Myall Creek 4A rate and 300+ well inventory.

asset acquisition disposition

Armour was named preferred tenderer for two further Roma Shelf blocks, PLR201718-2-6 and -7, near the Kincora plant. Tubing is now installed in Myall Creek 4A. Liquids are 170 bbl/d condensate and 14 t/d LPG. The 20 TJ/d target is now 12-18 months away.

asset acquisition disposition

Armour was formally awarded 100% of ATP2032 (318 sq km) next to its PL22 and the Kincora plant, domestic gas only. This resolves its earlier preferred-tenderer status. Myall Creek 4A is still awaiting a rig for tubing; Armour is at 9 TJ/d, targeting 20 TJ/d.

asset acquisition disposition

The retail entitlement offer drew $3.27m of applications, so the offer raised $5.86m from shareholders in total against the $10.1m target. A shortfall of $4.27m falls to underwriter Samuel Holdings, an entity associated with chairman Mather; settlement is being arranged.

capital raising announcement

Myall Creek 4A's 7 Aug rate of 2 MMcf/d was recalculated to 1.7 MMcf/d after a contractor measurement error; flow is now unstable at 0.6-0.8 MMcf/d. Extra perforations (65 m) and production tubing come next, with commercial production now planned for September 2018.

drilling progress report

Armour launched a 1-for-4 entitlement offer at $0.10 a share to raise about $10.1m, fully underwritten by an entity associated with chairman Nicholas Mather. Funds support the FY2019 Kincora well program starting with Myall Creek 4A, plus corporate and operating costs and creditors.

capital raising announcement

Myall Creek 4A is flowing 2.0 MMcf/d of gas and 7 barrels a day of condensate during flowback, with only about 30% of the stimulation fluid recovered. The company expects gas rates to rise as cleanup continues. This is an early, unstabilised rate.

flow test result

Armour signed a facility with Tribeca to borrow up to $6.8m (second-ranking secured, 9% coupon) plus 41m options at $0.166. It also settled a dispute with noteholder MHC, extending its early-redemption decision window from 30 June to 31 December 2018; noteholder approval is pending.

debt financing

The GAP grant agreement is signed, resolving the open item from March. Armour has received the first $2.3m of the $6m, with the rest tied to milestones over 12 months. It funds a four-well program by June 2019; Myall Creek 4A is drilled and cased, with stimulation and tie-in planned by end August.

material agreement

Myall Creek 4A reached 2,395 m with strong gas shows through the 300 m Triassic and Permian section, up to 100% in the Permian sandstones, and a liquids-rich gas. This is a drilling indication only; casing, stimulation and flow testing still follow before any rate is known.

drilling result

Myall Creek 4A spudded in 100%-owned PL511, the first of the Phase 2 wells. Planned depth is 2,390 m, targeting 4.4 PJ of gas. It will be stimulated and part-funded by the GAP grant. Management aims for 20 TJ/day over 12 months, up from 9 TJ/day.

drilling spud

Updated Kincora reserves: 2P gas rises 8% to 61.7 PJ (from 56.8 PJ in April 2017), with 609 kbbl condensate and 126 kt LPG. New Rewan Formation 2C contingent gas is 29.3 PJ, and best-estimate prospective gas is 129 PJ. Four wells are planned for FY2019.

resource reserve update

Armour contracted to drill Myall Creek 4A, its first new production well, with spud planned by end of May 2018. It is 100% owned and part funded by the GAP grant. Target recovery is 4.4 PJ gas. PPL63 pipeline repairs are done, restoring 14 TJ/day capacity.

drilling scheduled

The board will pay convertible note interest for the six months to 31 March 2018 in cash rather than new notes. It cites 50 days at 9 TJ/day and roughly $2m monthly revenue, which it expects to be cashflow positive from operations.

debt financing

Armour won a $6m Federal Government Gas Acceleration Program grant to speed up three Kincora production wells. It estimates 6.9 PJ of gas delivered by 30 June 2020 and 14 PJ over the wells' life. Grant arrangements are still to be finalised with the Government.

material agreement

Armour is preferred tenderer for a further 318 sq km Roma Shelf block (PLR2017-18-1-2), next to its existing licences and the Kincora plant. It follows the October 2017 award. Gas must go to the domestic market only. Work program is agreed; no cash price is stated.

asset acquisition disposition

Kincora Gas Plant reached 9 TJ/day, completing Phase 1: about 6 TJ/day from 12 of 31 existing wells and 3 TJ/day from Newstead storage. First LPG and condensate sales began 1 February. Phase 2 targets 20 TJ/day in 12-18 months, with the first 2 new Myall Creek wells planned for 2018.

production update

The Kincora Gas Plant is fully operational after the LPG system restart. Existing wells are now producing gas, LPG and condensate, with gas rising from 5 to 9 TJ/day. M.H. Carnegie's further $5m is confirmed, taking its total to $13.25m. About 3 Myall Creek wells are planned for 2018.

production update

Armour is preferred tenderer for 365 sq km tender area PLR2016/2017-1-2 on the Roma Shelf, to be awarded for nil consideration. It adjoins PL71 and the Ungabilla block, so any gas found can reach the Kincora plant. Newstead gas is now selling at 5 TJ/day.

asset acquisition disposition

The $4.25m entitlement offer closed with about 94% take-up; the roughly $0.25m shortfall went to DGR Global as sub-underwriter. Armour will place up to a further $1m at 7.6c. The DGR debt facility is now fully extinguished and its security released.

capital raising announcement

Commercial gas sales from Kincora began on 29 September 2017, ending the restart wait. Sales to APLNG target 5 TJ/day from Newstead storage (2.3 PJ). The wet gas circuit is due December 2017, lifting output to 9 TJ/day.

production update

Phase 1 gas production has begun with the dry gas circuit at the Kincora plant recommissioned. Newstead gas sales at 5 TJ/d are on schedule for end September, rising to 9 TJ/d once the wet gas circuit is done in December 2017.

production update

Armour was granted the Kanywataba exploration licence in Uganda, ending its preferred-tenderer wait. Armour's beneficial interest is 16.82% and DGR Global's is 83.18%, with DGR paying the first two years' costs. Armour estimates 646-969 MMbbl of unrisked prospective oil in place.

asset acquisition disposition

Armour launches the 7.6c entitlement offer: about 56.0m new shares to raise roughly $4.26m, underwritten by Bizzell (a director-controlled entity). Shares would rise to about 392.0m. Funds go to the Kincora restart, creditors and working capital.

capital raising announcement

DGR Global says it will hold 83.18% of the Uganda Kanywataba Block and Armour 16.82%. DGR funds the first two years' costs, including US$1.98m of exploration commitments. This reduces Armour's exposure and cost in the Uganda licence it won as preferred tenderer.

joint venture update

Armour says pipeline testing confirmed PPL3 meets compliance, so first Kincora gas is still expected by end September 2017, subject to APLNG's gas transport condition. M.H. Carnegie committed a further conditional $5m of notes; $32.7m of $45m notes issued. Uganda licence expected September.

material agreement

Matthew Beach, a partner at M.H. Carnegie & Co, joined the board as a non-executive director, as that investor's nominee. Carnegie is the lead noteholder in the recapitalisation, so it now has a board seat.

director officer appointment

Armour bought QGC's interest in ATP 647 on the Roma Shelf, taking it to 100%. The block sits next to the Myall Creek field. Armour sees the suspended Myall Creek East 1 well as a candidate for stimulation. No price stated.

asset acquisition disposition

Conditions were met for M.H. Carnegie's second tranche, triggering $5.75m of subscriptions plus about $7m from other investors pending shareholder approval. Noteholders and trustee approved the increase to $45m. The entitlement offer is expected within a month.

capital raising announcement

Armour is lifting its convertible note issue by up to $10m to $45m, taking the total raising to over $50m. A $1m placement at 7.6c is done; the 1-for-6 entitlement offer at 7.6c (about $4.25m, Bizzell underwritten) follows. $19m of notes subscribed so far.

capital raising announcement

Armour booked its first independently verified Kincora reserves: 2P of 56.8 PJ gas, 565 kbbl condensate and 117 kt LPG, upgraded from part of the earlier contingent resources. Gas sales and pipeline agreements underpinned the upgrade. First gas still targeted June 2017.

resource reserve update

Armour signed a ten-year connection agreement with APA Group for up to 30 TJ/d into the Roma Brisbane Pipeline at Wallumbilla, needed to deliver gas to Australia Pacific LNG. First gas still targeted for June 2017. Pipeline access was a condition for MH Carnegie's next $5.0m tranche.

material agreement

Armour signed gas sales agreements with Australia Pacific LNG for a minimum five years, with contracted volumes of up to 3.65 PJ/a and pricing certainty on 1.8 PJ/a. First gas is now targeted for June 2017, later than the mid Q1 2017 stated three days earlier.

contract award

MH Carnegie signed definitive agreements for up to $18.25m of convertible notes and paid the first $2.5m. A further $10.8m was subscribed by related parties, including DGR's $9.4m in part repayment of its loan. Notes are 15%, convertible at $0.11, due September 2019.

capital raising announcement

Armour exercised its pre-emptive rights to buy Santos' interests in Roma Shelf tenements. On completion it rises to 100% of five leases around the Kincora Gas Plant and increases its stake in four others. Conditions precedent remain unsatisfied and the price is not stated.

asset acquisition disposition

Armour launched a recapitalisation of up to $40m: convertible notes of up to $35m at 15%, with MH Carnegie committing up to $17.5m, plus a 1-for-6 entitlement offer at 7.6c raising about $4.05m. DGR would take $10.4m of securities in part repayment of its loan. Subject to definitive agreements and shareholder approval.

capital raising announcement

CEO Robbert de Weijer, in the role since July 2013, resigned. Chief Operating Officer Roger Cressey, with Armour since 2011, becomes interim CEO until the position is reconsidered. No reason for the resignation is given.

director officer appointment

Transfer of the last Kincora tenement, ATP647, from Origin is complete, so Armour is on title for all 17 production licences, 3 exploration licences and 4 pipeline licences. This meets the 31 August deadline. Armour cites 105 PJ of 2C contingent gas; conversion to reserves depends on restart.

asset acquisition disposition

The 40,063,785 Armour shares taken over in the AEGP settlement were resold to institutional and sophisticated investors at 7.6c, raising about $3.05m. Proceeds go to final payments owed to Origin and working capital. This resolves the share disposal flagged on 16 August.

capital raising announcement

Oil production restarted at Emu Apple on the Kincora assets, at about 50 bpd, with restart work completed well below budget. It is Armour's first cash flow, following the July restart plan. Gas restart is still targeted by end 2016.

production update

Armour settled with AEGP after the court win. AEGP could not perform following Aubrey McClendon's death. The farm-out ends, Armour keeps 100% of its NT tenements and takes over AEGPAS, which holds 40,063,785 Armour shares (12.99%, about $3.5m), for disposal. No US$13m cash is received.

farm in farm out completion

Armour set out a three-phase plan for the Kincora project: first gas of about 5 TJ/d by end 2016, then stimulations to about 10 TJ/d, then 4 new and 3 deepened wells in 2017 to reach at least 15 TJ/d. Funding is still being negotiated and gas sales are not yet agreed.

production update

Independent SRK review lifts net 2C contingent gas at Myall Creek, Parknook, Namarah and Warroon from 15 PJ to 92 PJ (510% increase), with 105 PJ across the wider Kincora area. First gas is targeted by end 2016; reclassification to reserves depends on proving economics after plant restart.

resource reserve update

Oil production at Emu Apple, part of the Roma Shelf Kincora assets, is scheduled to restart in August 2016, after last producing about 50 bpd in 2014. Armour's first production from the assets bought from Origin, with restart work expected below budget.

production update

Queensland Supreme Court ruled for Armour, ordering AEGP to complete the NT farm-out. On completion AEGP must pay US$13m and subscribe 16,888,502 shares at 20c (A$3.37m). This resolves the dispute in Armour's favour for now; the court did not bar Armour's termination right. Armour will seek costs.

farm in farm out agreement

DGR extended its bridging loan two months to 31 May 2016 at 15%. The facility limit was cut from $19m to $13m after a $6m repayment; $11.11m is drawn. DGR can convert debt to join any pro-rata raising. Third-party financing talks continue.

debt financing

AEGP failed to complete on 2 February, so Armour started separate Supreme Court proceedings seeking specific performance of the farm-out, or alternatively a right to terminate. AEGP's second share tranche at 20c is due at completion and lapses automatically if the farm-out is terminated.

farm in farm out agreement

AEGP's partial bid closed 12 January; accepting holders are paid by 2 February. The DGR bridging loan is now secured, cutting interest from 22% to 15%, available to 31 March 2016. About $21m would arrive if the farm-out proceeds.

debt financing

AEGP has started Queensland Supreme Court proceedings seeking a declaration that Armour cannot terminate the NT farm-out. Armour says it keeps its termination right and will vigorously defend. Returnable 9 February. The farm-out has become a legal dispute.

farm in farm out agreement

AEGP says on 9 January it finished due diligence, but Armour gave notice the native title assignment condition could not be satisfied. A risk remains that either side terminates or renegotiates the farm-out, which is separate from the bid closing 12 January.

farm in farm out agreement

AEGP says farm-out conditions remain outstanding ahead of the 9 January cut-off, and a native title assignment is now unlikely to be met as required. Either party could then terminate or renegotiate, putting the US$130m farm-out at risk.

farm in farm out agreement

AEP received FIRB approval for the farm-out and its shareholding, up to 15.95% of Armour. Closing can occur up to 9 January 2016, when AEP pays US$13m. AEP will subscribe a further $3.75m at 20c; its first 5% ($3.75m) was completed 4 November. The bid could take it to 20%.

farm in farm out completion

The NT Government selected Jemena to build the $800m, 622km North East Gas Interconnector via the Northern Route, Tennant Creek to Mount Isa. It is expected to cross Armour's EP177 and EP178, giving potential market access. This resolves the open pipeline selection thread.

regulatory community update

WestSide formally withdrew its takeover offer for Armour effective 5 November 2015, with ASIC consent. All acceptances are void and shareholders are free to deal with their shares. This ends the competing bid, leaving AEP's 25c proportional bid as the live offer.

business combination

Queensland regulator gave indicative approval for the Roma Shelf transfer. The agreement covering Origin-owned assets is now unconditional, with completion due 13 November; payments include $5.1m at completion and $10.7m in financial assurance. Third-party joint venture parts remain conditional. Oil restart expected within 3 months of title registration.

asset acquisition disposition

Shareholders approved all resolutions at the 30 October meeting, so the US$130m American Energy farm-out can proceed subject to remaining conditions. AEP's 25c proportional bid for 13.62% of each holding must be dispatched within 42 days. Board recommends accepting it and rejecting WestSide's 20c.

business combination

WestSide says the farm-out approval means its 20c offer cannot become unconditional, so acceptances will not create binding contracts. It terminated its implementation agreement with Armour and will seek ASIC consent to withdraw. WestSide holds 1.74% (5.29m shares).

business combination

DGR Global increases its loan facility for Armour's Roma Shelf purchase from $15m to $19m. All other material terms are unchanged. The announcement also includes an unrelated update on DGR's SolGold investment.

debt financing

American Energy announces it will make a proportional takeover for 13.62% of each Armour holding at 25c, 25% above WestSide's 20c, if the 30 October meeting approves the farm-out. It would hold up to 14.99% via the bid, and a maximum 19.23% after the share placements.

business combination

Armour reverses course: it signs a deal with American Energy for a proportional takeover of 13.62% of each holding at 25c, alongside the farm-out. The board calls this superior and now recommends voting for AEP and rejecting WestSide's 20c. DGR will vote for it but not sell.

business combination

DGR Global (24.64% of Armour) backs the American Energy farm-out and has irrevocably agreed to vote 19.99% of Armour's shares for it. It calls the package superior to WestSide's 20c offer and will not accept the 25c proportional bid. This reverses its earlier non-committal stance.

business combination

WestSide formally raises its offer to 20c a share, best and final absent a superior proposal, and extends it to 9 November 2015. It will not rely on the AEP breach if shareholders reject AEP at the meeting. It also opens an institutional acceptance facility.

business combination

WestSide lifted its cash bid to 20c a share (about A$60.9m), called best and final, plus a Lakes Oil share dividend worth about 1.4c if the bid goes unconditional. Armour directors now recommend acceptance and a vote against the AEP farm-out at the 30 October meeting.

business combination

Armour confirms it received an indicative, non-binding proposal from WestSide to lift its offer from 12c to 20c a share, and is in discussions. It is not yet a formal variation and is not guaranteed. Shareholders should take no action.

business combination

Armour's Target's Statement says BDO's independent expert finds WestSide's 12c offer 'not fair and not reasonable', against a valuation of 22c to 37c a share. Directors and holders of 29.51% do not intend to accept. Board unanimously recommends rejecting.

business combination

Armour signed a binding $15m unsecured loan from DGR Global to fund the Roma Shelf purchase, at 22% a year (15% if secured), minimum 4 months. Extension needs security, a 0.5% royalty and 50m options; DGR may convert up to 50% to shares. Repayable on a change of control.

debt financing

SRK-assessed best-estimate prospective gas resources in northern Australia rise 66%, from 34 to 57 Tscf. This adds maiden Tawallah Group (NT) and Riversleigh Shale (Qld) volumes, plus 97 new NT conventional leads. These are undrilled prospective estimates, not proven reserves.

resource reserve update

Armour says signing the binding AEP deal likely breaches a condition of WestSide's bid, so the bid may be withdrawn. The board recommends the AEP deal and rejecting the 12c offer, framing the choice for shareholders as AEP versus WestSide.

business combination

Binding AEP deal signed and upsized: US$130m Phase One spend for 75% of 29.3m acres, US$13m upfront, US$3m and US$7m bonuses, and options over 24m shares. AEP also takes a 33.7m-share placement at 20c (A$6.74m). Subject to shareholder approval.

farm in farm out agreement

Armour's directors unanimously recommend shareholders reject WestSide's 12c bid as opportunistic and inadequate. They point to the AEP farm-out and Roma Shelf purchase as value-adding transactions, with a target's statement to follow.

business combination

Armour signed agreements to buy Origin Energy's Roma Shelf assets in Queensland's Surat Basin for $10m cash plus $3m deferred. They include the Kincora gas plant and 19 production licences, with 2C contingent resources of 23 PJ gas. Oil flow is expected within a month, gas in 6-12 months. This moves Armour toward production.

asset acquisition disposition

WestSide Corporation, a subsidiary of Landbridge Group, launched an unsolicited off-market cash takeover bid at A$0.12 per share (about A$36.6m), a 76% premium to the A$0.068 close. It is conditional on the AEP farm-out not proceeding and on 50.1% acceptances.

business combination

Non-binding letter of intent for American Energy Partners to spend US$100m over up to 5 years for 75% of 21.5m acres of Armour's NT McArthur Basin permits. Armour is carried 100%, gets US$11m upfront plus US$7m bonus. Definitive agreements due within 3 months. This follows months of farm-out talks.

farm in farm out agreement

Lakes Oil said Armour has served notice to move resolutions removing two Lakes directors, Executive Chairman Rob Annells and Barney Berold. A Lakes shareholder meeting is due in September 2015. Armour holds about 19.99% of Lakes, its partner in Victorian permits.

joint venture update

A CSIRO study found good oil and wet-gas source rock (organic content up to 7.7%) in the Tawallah Group beneath Armour's NT permits, a new play estimated over 52,000 km2. No resource figure yet; more sampling is underway before an estimate.

resource reserve update

The approved R&D rebate arrived: $9.39m cash ($9.1m net of costs), resolving the January cash concern. Armour can claim again for FY15 and FY16 spending and says it strengthens its push to find partners for the next exploration stage.

regulatory community update

Queensland's mines department approved a lighter minimum work program for 100%-owned ATP1087, favouring gas-extraction trials and sweet-spot mapping over many expensive exploration wells. This follows the 2-year extension to 31 Dec 2018 and reduces near-term spending needs.

regulatory community update

Armour was named preferred tenderer for Queensland land releases PLR 2014-1-2 and 2014-1-3, adding about 5,400 km2 southwest of ATP1087, near the Lawn and Riversleigh shales. Native title agreements and environmental clearances are needed before permits are granted.

asset acquisition disposition

Ausindustry reversed its 26 Sep rejection and approved Armour's R&D advance finding with minor adjustments. A substantial cash rebate is expected this quarter once the tax return is processed; amount not stated. This relieves the cash concern.

regulatory community update

Armour signed a non-binding MOU to supply 1-2 PJ a year of gas to Aeon Metals' Walford Creek project in north-west Queensland. It is a second small gas-customer MOU after MMG's 7-9 PJ; no price or binding contract yet.

material agreement

Egilabria 2 flared gas continuously 30 Sep–9 Oct, annulus pressure reached 781psi and 64% of stimulation fluid was recovered, but no stable flow rate was measured. Flow stopped 9 Oct and the site was demobilised; Armour blames low test pressure.

flow test result

Egilabria 2 now flows gas continuously through the test separator, with intermittent flaring, and annulus pressure has risen to 630psi. Flow rate is not yet measured. 57% of stimulation fluid is recovered, a step toward proving commercial flow.

flow test result

Armour signed a non-binding MOU with MMG Century to scope gas supply of 7-9 PJ a year from its Queensland acreage to MMG's operations, including power generation. It is a first step toward early gas sales, with no binding contract or price yet.

material agreement

SRK certified maiden contingent gas resources for Egilabria 2 DW1 (Lawn Hill Shale, ATP1087, 100% owned): 33 / 154 / 364 Bcf (1C/2C/3C), or 350 PJ at 3C, over 64 km2. It is the first booking from the Queensland shale flows; the plan is to define sweet spots before more testing.

resource reserve update

Armour is cutting overheads: directors take a 33% fee cut, management 20% of pay in shares, saving about $1.2m a year. Director Jeremy Barlow resigned. Cash was about $11.3m at end 2013; it is in talks with parties to partner its northern acreage.

other

Armour exercised its right to farm into Lakes Oil's PRL2 (Gippsland), taking operatorship and an initial 15% interest, with a $10m work program in 12 months and an option to reach 50% with a further $40m. Work is suspended by Victoria's fracking moratorium; it seeks revised terms and can withdraw at no cost.

farm in farm out agreement

Lamont Pass 3 reached 1,275m and was plugged and abandoned; the company reported an oil and gas discovery to the NT regulator based on 520m of oil-bearing Barney Creek Shale. Egilabria 2 flowback stopped at 45% fluid recovery for a long pressure build-up test; rigs demobilised for the wet season, work resumes 2014.

drilling result

Third-party SRK Consulting lifted NT conventional gas mean prospective resources from 322 PJ to 3,496 PJ (2,870 Bscf), across 55 prospects and leads in EP171, 176 and 190. This supersedes D&M's 264.4 Bscf over 23 targets. Unrisked prospective, not contingent or reserves; 18.8 Tcf unconventional unchanged.

resource reserve update

Lamont Pass 3 (EP190) intersected oil-bearing Barney Creek Shale from 260m to 780m, drilling at 922m toward about 1,200m. The company says this extends the oil window to 780m from 350m previously assessed. Shows only, no flow test or volumes.

drilling result

Egilabria 2 has begun continuous gas flows after stimulation, with a flare of at least 2 feet at open choke and zero psi. The gas rate is unmeasured, so no commercial flow is shown. It resolves the long-awaited test, and the company calls it Australia's first multi-stage horizontal shale gas well.

flow test result

Lamont Pass 3 hit live oil in fractures at 535m, with oil shows and connection gases up to 25 times background. It is a first oil sign in the 2013 NT campaign, still coring at 550m, with no flow test or volumes yet.

drilling result

Armour was granted two more Northern Territory permits, EP191 and EP192, covering 24,700 km2 and lifting its granted NT area by 86%. They are seen as prospective for shale source rock based on historic oil shows; studies begin in 2014.

regulatory community update

Egilabria 4 reached total depth of 1,839m, on time and within budget, with gas shows in the Lawn Shale, Riversleigh Shale and base of the Carpentaria Basin. Company says this supports continuous gas off structure. Egilabria 2 has recovered about one-third of frac fluid; gas not yet flowing, no rates.

drilling result

The 2013 Northern Territory campaign began with Myrtle Basin 1 spudded 13 September in 100%-owned EP176, planned to 800m. It targets a structure with 4.4 Bcf in-house prospective resource; Lamont Pass 3 and optional Caranbirini 1 follow, testing the Coxco Dolomite's 264 Bcf.

drilling spud

Egilabria 4 vertical well spudded 22 August in ATP 1087, planned to 1,800m, targeting the Lawn and Riversleigh Shales and basal Jurassic sands. Egilabria 2's eight-stage frac is planned within two weeks, followed by a production test.

drilling spud

Egilabria 2DW1 lateral reached 2,102m measured depth (1,747m TVD, 568m offset) and was cased, with gas flows and shows while drilling. An eight-stage frac is planned by end August, with production test results by end September. The rig then moves to Egilabria 4.

drilling result

Lakes Oil says Beach Energy and Somerton (now Cooper Energy) withdrew from their PRL2 farm-in and their interests revert to Lakes. Armour now has 6 months to match any other farm-in proposal, or the terminated Beach deal. This changes the PRL2 option picture.

joint venture update

Drilling began on the Egilabria 2 DW1 lateral from the vertical well at about 1,300m, targeting 570-750m of lateral and up to eight frac stages across 1,605-1,745m of Lawn Shale. Halliburton is contracted to frac in August to try to prove commercial gas flow.

drilling spud

Egilabria 2 reached total depth of 1,900m; logs show the Lawn Shale is 137m thick versus 125m expected, with gas over 800m (1,091-1,900m). The vertical well will be plugged back and the lateral drilled within days. Frac design awaits log analysis.

drilling result

Egilabria 2 hit a gas zone at 1,097m producing an 8m flare, with a peak show of 1,417 units (about 23.8%). Casing set at 735m; depth 1,330m. The Lawn Shale target is at 1,640-1,765m. Shows only, no flow rate or test result yet.

drilling result

Armour signed a non-binding Heads of Agreement with APA Group to work on transporting up to 330 PJ a year of gas to Mt Isa, Queensland and Sydney. Pipeline building is conditional on resource certification and gas sales. Armour targets first gas February 2016.

material agreement

Robbert de Weijer, formerly CEO of Dart Energy Australia and COO of Arrow Energy, becomes CEO from 8 July 2013, replacing Phil McNamara. This is a change of chief executive; no reason for McNamara's departure is given.

director officer appointment

Egilabria 2 vertical well in ATP 1087 spudded 12 May 2013, the start of Armour's Queensland shale program, planned to 1,750m. A lateral and six-stage frac in July follow. Armour targets up to 9 TCF over three years from the Lawn Hill Shale.

drilling spud

DeGolyer and MacNaughton certified 322 PJ (264.4 Bscf) unrisked prospective resources across 23 Coxco Dolomite targets, and 12.5 PJ (10.3 Bscf) 3C contingent resource for Glyde 1. This is the first independently certified contingent resource. Armour is in confidential gas sales talks with three parties.

resource reserve update

Armour signed Halliburton for a six-stage hydraulic stimulation of the planned Egilabria 2 DW1 lateral well in ATP 1087. Long-lead equipment is bought and drilling starts May 2013. This fills the frac contract thread; target is 9 TCF over three years.

contract award

An in-house review of ATP 1087 identified four new play types: targets of up to 18 TCF gas in place in the Riversleigh Shale, and up to 1.8 TCF gas plus 137m barrels of liquids in three other plays. Recoverability is not assessed. Drilling is planned for Q2 2013.

resource reserve update

Armour identified 18 conventional Coxco Dolomite targets in the Batten Trough with 314 PJ risked prospective resources, superseding the earlier 130 BCF Glyde estimate. Unconventional mean prospective resource is 18.7 TCF. Drilling 21 wells could yield a 314 PJ 2C contingent resource.

resource reserve update

Armour hired Silver City Drilling for 2013 wells, replacing the terminated 2012 contractor, with lump-sum rig moves and performance criteria. Queensland drilling begins late April at Egilabria 2, with a six-stage frac planned July 2013, then NT wells. This resolves the drilling contract thread.

contract award

Armour was granted ATP1087 in North Queensland (7,138 km2), resolving its preferred-tenderer status. It plans three vertical wells and one lateral in 2013 targeting Lawn Hill Shale (22.5 TCF mean prospective), aiming to define up to 9 TCF over three years.

regulatory community update

NT permits EP174 (4,340 km2) and EP190 (12,820 km2) were granted, lifting contiguous granted McArthur Basin cover from 11,505 to 28,665 km2. A Fugro airborne survey is planned for January 2013, and NT drilling resumes after Queensland wells. About 105,000 km2 of applications remain.

regulatory community update

Armour estimates a mean prospective conventional gas resource of 130.7 BCF for the Greater Coxco/Glyde field in EP 171, up from 10.2 BCF previously. Discovery was notified to the NT. Airborne gravity and magnetic surveys are planned for further targets.

resource reserve update

Armour signed native title agreements covering ATP 1087 in North Queensland, a key step toward grant as preferred tenderer. Exploration is planned from April 2013. The tenement carries a 22.5 TCF mean prospective gas resource, comparable to Glyde-style shale.

regulatory community update

Armour terminated its NT drilling contract, saying the contractor could not fix performance problems; the contractor disputes the suspension and termination. The NT drilling campaign is suspended while a new contract is negotiated, following the 24 August suspension, delaying further wells.

material agreement termination

Glyde #1 lateral finished at 840m, cased with perforated sections and suspended awaiting production testing; independent resource assessment started. NT spend of $19.6m exceeded the $17.264m plan by $2.3m, five of eight wells drilled, and the drilling contractor is suspended over dissatisfaction.

drilling result

Flow testing of Glyde #1 lateral gave 3.33 million cubic feet a day at 125 psi on a full-open choke after 10 minutes. Gas is about 77% methane and 11% each ethane and propane. Drilling continues at 810m in gas-bearing rock, within a roughly 500 km2 sub-basin.

flow test result

Glyde #1 lateral, at 672m, is flaring gas at an estimated 3.5-4.5 million cubic feet a day while air drilling, with no water seen. This resolves the pending lateral result positively; a formal flow test awaits NT approval.

drilling result

Glyde 1 reached 698m, intersecting 132m of gas-charged, naturally fractured Barney Creek Shale with continuous gas shows and negligible CO2. A 600m lateral well is now being drilled to test commercial potential.

drilling result

Glyde 1 in EP171 (100%) spudded 27 July, with surface casing at 234m. It will drill to 800m, targeting the Barney Creek Shale and Coxco Dolomite near a 1979 gas flow. It spudded four days later than the 23 July target given on 17 July.

drilling spud

Kilgour North 1 was suspended at 1,142m after repeated water inflows flushed hydrocarbons from the Lynott and Reward reservoirs. The rig moves to Glyde, due to spud 23 July. Armour has identified additional targets.

drilling result

Armour booked its first gas resource: a mean prospective resource of 100.4 BCF for the Greater Cow Lagoon Structure in the Lynott and Reward Formations. Three down-dip targets (Batten Creek, Looking Glass, Ryans Bend) are identified for coring.

resource reserve update

Kilgour North 1 in EP171 (100%) is drilling after surface casing was set at 319m, with a proposed depth of 2,100m. A petroleum discovery at Cow Lagoon 1 was formally notified to the NT; log interpretation continues.

drilling spud

Cow Lagoon 1 finished at 1,804m, cased and suspended. It found gas in the Lynott and Reward Formations, with flares and shows from 295m to 1,560m, proving a trap. Kilgour North 1 is due to spud 22 June.

drilling result

Armour is preferred tenderer for Queensland permit ATP 1107, next to ATP 1087, doubling its Queensland ground from about 1.8 to 3.6 million acres. Native title and environmental clearances are still needed. ATP 1087 has a 22.5 TCF mean prospective resource estimate.

asset acquisition disposition

Cow Lagoon 1, Armour's first McArthur Basin well, hit gas shows in the Reward Dolomite at 342–540m, in tight rock with poor porosity. Main targets lie deeper. Armour cites an independent 18.6 TCF mean prospective resource for the permits.

drilling progress report

Lakes Oil reports Holdgate-1 was spudded in the Gippsland Basin's PEP166, testing the Strzelecki Group for tight gas on the Baragwanath Anticline. Armour funds the well as part of earning 51% of PEP166.

drilling spud

Moreys 1 flowed gas and condensate from the Eumeralla Formation (1,985.5–1,995.5m), but the primary Waarre C target appears tight. Armour has completed its $2.5m spend and earned 51% of PEP169. Holdgate 1 is next.

drilling result

Lakes Oil reports Moreys-1 found tight gas and condensate in the Eumeralla Formation; the Waarre C primary target appears tight. Armour has now earned its 51% of PEP169. Holdgate-1 in PEP166 is due to spud about 20 May.

drilling result

Armour starts ASX trading 26 April after raising $75m (150m shares at $0.50). Cow Lagoon #1 shale well in the Northern Territory is due to spud in early May, targeting about 800m. Moreys 1 in Victoria, funded to earn 51% of PEP169, spudded 19 April.

drilling scheduled

Armour Energy was admitted to the ASX Official List on 20 April 2012, with 221,050,000 shares and 57,687,500 options quoted from 26 April 2012. The company starts life as a listed gas explorer.

other

ASX circular confirms the IPO raised $75 million from 150 million shares at $0.50, with one free option per four shares. Quotation starts 26 April 2012; 78.95 million shares are escrowed 24 months. Activity is shale gas exploration in northern Australia.

capital raising announcement