16 Nov 2018director officer appointment● Neutral
Karl Schlobohm's term as alternate director for Bill Stubbs has ended. Administrative.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Nov 2018asset acquisition disposition▲ Good
Armour was named preferred tenderer for another Roma Shelf block, PLR201718-2-4, which its 100% PPL 20 pipeline crosses. This adds to the earlier preferred-tenderer blocks. Production is 9 TJ/d, with condensate at 170 bbl/d and LPG up to 19 t/d.
12 Nov 2018drilling progress report▼ Bad
Myall Creek 5A lost part of its drill assembly, which became differentially stuck and could not be retrieved. The well was cemented back to the 9-5/8 inch casing shoe and a sidetrack was under way. Armour said the lost equipment was insured.
7 Nov 2018other● Neutral
1,000,000 unlisted employee options (strikes $0.215 to $0.265) expired. Armour now has 500,555,321 shares, 61.1m unlisted options and 374.2m convertible notes. Administrative capital structure update.
1 Nov 2018quarterly activities report▲ Good
September quarter revenue rose to $7.28m from $6.52m, on gas sales of 8.8 TJ/d. Myall Creek 4A was connected, the Tribeca facility was signed and the entitlement issue was run. Up to three wells are planned next quarter. Shares on issue are now 500.6m.
1 Nov 2018drilling spud▲ GoodMajor
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.
30 Oct 2018resource reserve update▲ GoodMajor
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.
26 Oct 2018annual report● Neutral
Re-release of the FY2018 annual report (first issued 28 Sep 2018), now with the AGM date of 27 November 2018. The chairman repeats plans for three more GAP-part-funded wells and a lift to 20 TJ/day. Financial figures were not in the text provided.
8 Oct 2018production update▲ GoodMajor
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.
5 Oct 2018asset acquisition disposition▲ GoodMajor
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.
28 Sept 2018annual report● Neutral
Corporate governance statement and Appendix 4G for FY2018, saying the company largely follows ASX recommendations and explains departures. Compliance document with no new operational or financial news.
28 Sept 2018annual report● Neutral
FY2018 annual report (year to 30 June 2018). The chairman says Armour is now a consistent Kincora producer and plans three more GAP-part-funded wells and a lift to 20 TJ/d. Financial figures were not in the text provided.
26 Sept 2018asset acquisition disposition▲ GoodMajor
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.
12 Sept 2018asset acquisition disposition▲ GoodMajor
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.
5 Sept 2018director officer appointment● Neutral
Director Bill Stubbs appointed Company Secretary Karl Schlobohm as his alternate director until 17 November 2018. Administrative.
5 Sept 2018capital raising announcement● NeutralMajor
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.
30 Aug 2018other● Neutral
5,000,000 unlisted underwriting options at $0.195 expired. Shares on issue are 432,021,216 and convertible notes 374,225,359 after some conversions. Administrative capital structure update.
30 Aug 2018drilling progress report● Neutral
Myall Creek 4A is shut in awaiting production tubing, with the workover rig scheduled for the second week of September and commercial production planned for September. Armour is investigating the earlier stuck-tool incident and has reserved rights against Halliburton and Firetail.
23 Aug 2018capital raising announcement● Neutral
The retail close of the $0.10 entitlement offer was extended from 28 to 31 August, with results due 5 September. Convertible note conversion ratio adjusted to 1.0047 shares per note, and option strike prices were lowered slightly because of the offers.
17 Aug 2018other● Neutral
750,000 unlisted director options expired after director Matthew Beach resigned. Quoted shares are now 431,041,040 after the institutional issue, with 375,200,950 convertible notes. Administrative capital structure update.
17 Aug 2018other● Neutral
DGR Global's business update on its investments. For Armour it repeats known items: Myall Creek 4A connection, the $0.10 entitlement offer and DGR's $2.1m institutional take-up. DGR values its Armour holding at about $21.5m ($11m shares, $10.5m notes). No new Armour information.
16 Aug 2018drilling progress report▼ BadMajor
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.
15 Aug 2018capital raising announcement● Neutral
Armour confirmed the retail offer booklet was posted to eligible shareholders and a notice sent to ineligible holders outside Australia and New Zealand. Administrative; no new terms.
10 Aug 2018capital raising announcement● Neutral
The institutional part of the $0.10 entitlement offer raised about $2.59m, including $2.1m from DGR Global. The retail offer opens now and closes 28 August; the full $10.1m remains underwritten by a Mather-associated entity.
10 Aug 2018capital raising announcement● Neutral
Retail offer booklet for the 1-for-4 entitlement offer at $0.10 to raise about $10.1m, closing 28 August 2018. Shareholders taking up their full entitlement can apply for shortfall shares. Fully underwritten by Samuel Holdings. Repeats terms already announced.
8 Aug 2018capital raising announcement● NeutralMajor
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.
8 Aug 2018other● Neutral
ASX temporarily paused trading in Armour's securities on 8 August 2018, pending a further announcement from the company. The notice gave no reason for the pause.
7 Aug 2018flow test result▲ GoodMajor
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.
6 Aug 2018drilling progress report▲ Good
All five Myall Creek 4A stimulation stages are complete (424,678 lbs proppant vs 406,750 modelled) and the well is flowing back under its own pressure. Flow test results are expected by mid-August; tie-in follows if successful.
2 Aug 2018debt financing▲ Good
Armour drew about $6.5m of the $6.8m Tribeca facility; the balance follows once Westpac issues further environmental bonds. Mather says it costs less than the convertible notes and frees the $6.8m on deposit securing Queensland environmental bonds.