Past year: ▼ 20%(10.0c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
31 July 2018drilling progress report▲ Good
The lost tool was recovered and Myall Creek 4A stage 3 was stimulated (56,584 lbs proppant vs 60,500 modelled). Stages 4 and 5 remain, then flow back and testing. This resolves the stuck-tool delay reported on 23 July.
31 July 2018quarterly activities report▲ Good
June quarter revenue rose 29% to $6.52m on 8.7 TJ/d average gas sales, with positive operating cashflow. The GAP grant's first $2.3m was received and the Tribeca facility signed after quarter end. Myall Creek 4A completion and plant studies are the next steps toward 20 TJ/d.
26 July 2018other● Neutral
3,000,000 unlisted employee options expire after two employees left. Shares stay at 405,175,941 and convertible notes at 375,200,950. Administrative capital structure update.
26 July 2018debt financing● NeutralMajor
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.
23 July 2018drilling progress report▼ Bad
Two of five stimulation stages on Myall Creek 4A are done at modelled pump rates, but a tool and wire were lost down the well before stage 3. Recovery is ongoing, so the flow test timing (mid-August) may slip.
19 July 2018investor presentation● Neutral
Conference presentation. Visible text shows 405m shares, 375m notes, 9.8c share price, $39.71m market cap and $6.6m cash, and the five-member board. Appears to repeat known facts; the visible text carries no new operational news.
18 July 2018drilling progress report● Neutral
Halliburton has begun a 5-stage stimulation of Myall Creek 4A; stage 1 in the Lower Tinowon took 67,639 lbs of proppant against 66,750 modelled. Flow test results are expected by mid-August. If successful, the well will be tied into the Kincora plant.
6 July 2018director officer appointment● Neutral
Notice that Karl Schlobohm's stint as alternate director for Nicholas Mather, 25 June to 6 July 2018, has ended. Administrative; no substance.
29 June 2018material agreement▲ GoodMajor
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.
25 June 2018director officer appointment● Neutral
Executive Chairman Nicholas Mather appointed Company Secretary Karl Schlobohm as his alternate director through to 6 July 2018. Administrative; no operational or financial substance.
21 June 2018investor presentation● Neutral
Conference presentation giving an overview of Armour's projects. The visible text is disclaimers and a project summary; it appears to repeat known facts. No new information in the visible text.
14 June 2018drilling result▲ GoodMajor
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.
12 June 2018drilling progress report● Neutral
Myall Creek 4A has set 7-inch casing at 1,913 m and is drilling the final section to 2,414 m. The release sets out the planned multi-stage stimulation and a 4-inch pipeline to the compressor station. It restates 9 TJ/day sales held for 4 months and 61.7 PJ 2P reserves.
7 June 2018other● Neutral
DGR Global's business update mostly covers its other holdings. It restates Armour's Myall Creek 4A spud and the 21 May reserves update, and puts DGR's Armour stake at 22.4%, worth about $18.5m ($8m shares plus $10.5m notes at face). No new Armour information.
5 June 2018drilling progress report● Neutral
Myall Creek 4A has drilled and cased the surface section to 492 m and is drilling the next section toward 1,920 m. Final planned depth is 2,414 m. No new result; restates the GAP funding and 20 TJ/day target.
31 May 2018drilling spud▲ GoodMajor
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.
21 May 2018resource reserve update▲ GoodMajor
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.
16 May 2018director officer appointment● Neutral
Non-executive director Matthew Beach, the M.H. Carnegie nominee appointed June 2017, resigned with immediate effect. No reason is given. The board drops to five members.
11 May 2018drilling scheduled▲ GoodMajor
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.
30 Apr 2018quarterly activities report▲ Good
March 2018 quarter: sales revenue rose to $5.07m from $2.86m, with the first positive operating cashflow. A further $5.1m was raised via notes. WorleyParsons was appointed to assess the plant. The first production well is now planned to spud in the June quarter.
4 Apr 2018debt financing▲ GoodMajor
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.
28 Mar 2018material agreement▲ GoodMajor
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.
21 Mar 2018other● Neutral
DGR Global's monthly update mostly covers its other holdings. It restates Armour's 1 March acreage award and puts DGR's Armour stake at 22.4%, worth about $17m ($6.5m shares plus $10.5m notes at face). No new Armour information.
14 Mar 2018investor presentation● Neutral
Conference presentation to investors. The visible text gives capital structure (405m shares, 374m notes, 8.6c price, $34.8m market cap, $4.2m cash) and board details. Appears to repeat known facts; no new information in the visible text.
13 Mar 2018half year report● Neutral
Half-year to 31 December 2017: loss $8.35m versus $4.24m a year earlier, with sales revenue $3.1m after gas sales began. Convertible notes subscribed total $33.5m, plus $5m after balance date. Only 16 existing wells are online; first new production well targeted Q4 FY2018.
1 Mar 2018asset acquisition disposition▲ GoodMajor
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.
20 Feb 2018other● Neutral
DGR Global's monthly update mostly covers its other holdings and restates Armour's 9 TJ/day news. It puts DGR's Armour stake at 22.4%, worth about $18.5m ($8m shares plus $10.5m notes at face value). No new Armour information.
12 Feb 2018production update▲ GoodMajor
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.
6 Feb 2018other● Neutral
Notice that 550,000 unlisted employment options exercisable at 30 cents expired on 6 February 2018. Shares on issue are unchanged at 405,175,941, with 374,246,404 convertible notes. Administrative; no operational substance.
31 Jan 2018quarterly activities report● Neutral
December 2017 quarter: first full quarter of gas sales, revenue $2.86m versus $0.26m the prior quarter. Restart cost is now about $10.0m against an initial $6.9m estimate. The first new production well is targeted for Q4 FY2018. Shares on issue were 405.2m.
