18 June 2020director officer appointment● Neutral
Terms of CEO Brad Lingo's contract: $276,000 base pay, a bonus of up to $100,000, and up to 7.2m performance shares. No fixed term, with six months' notice either way.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 June 2020capital raising announcement● Neutral
Prospectus for the 1-for-3 entitlement offer at $0.023 per share, raising about $4.5m and fully underwritten by Bizzell Capital Partners. Retail offer closes 15 July 2020. Repeats terms in the raising announcement; the offer price is well below the 3.7c market price cited in March.
15 June 2020capital raising announcement● NeutralMajor
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.
15 June 2020asset acquisition disposition● Neutral
Oilex's own notice of the executed share sale agreement for its Cooper-Eromanga assets. Armour issues 24.5m shares, plus up to 10m more if needed to deliver $906,500 of value, and pays $125,000. Conditions must be met by 15 September 2020, including Armour shareholder approval.
15 June 2020investor presentation● Neutral
Investor presentation supporting the entitlement offer; the visible text is disclaimers only, with no new figures shown. It presumably repeats the raising terms and the Kincora story already announced (inference from the title and context).
15 June 2020director officer appointment● NeutralMajor
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.
12 June 2020resource reserve update▲ GoodMajor
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.
12 June 2020resource reserve update▲ Good
Re-release of the 12 June Kincora reserves update: 2P gas up 22% to 150.3 PJ (as at 31 December 2019), with 2P condensate 1.49 million bbl and 2P LPG 310,000 t. No new figures.
9 June 2020other● Neutral
Oilex says the Armour deal's conditions deadline is extended again, from 5 June to 15 June 2020, with more time needed to finish documentation. Duplicates Armour's release of the same day.
9 June 2020other● Neutral
Armour confirmed a second deferral of the Oilex Cooper Basin deal's conditions deadline, from 5 June to 15 June 2020. No other terms changed.
1 June 2020other● Neutral
The deadline for conditions on the Oilex Cooper Basin acquisition was pushed from 31 May to 5 June 2020. No other terms changed.
1 June 2020other● Neutral
Oilex's matching notice that the Armour deal's conditions deadline moved from 31 May to 5 June 2020. Duplicates Armour's release; no new facts.
29 May 2020other● Neutral
2,000,000 unlisted options (strikes $0.215 to $0.315) expired. Shares on issue remain 590,601,954. Administrative only.
28 May 2020asset acquisition disposition● Neutral
Oilex's own announcement of the deal: it would sell its Cooper-Eromanga Basin interests to Armour for up to 34.5m Armour shares (24.5m at completion plus up to 10m more) and $125,000 cash. Conditional on Armour's due diligence by 31 May 2020. Duplicates Armour's own release.
28 May 2020asset acquisition disposition▲ GoodMajor
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.
1 May 2020quarterly activities report▼ Bad
March quarter: Kincora revenue $5.9m (down from $7.1m), gas production 7.6 TJ/d, and Armour says it is behind forecast production. Market cap is $21.8m at 3.7c. Recaps PL1084, the new oil reserves and the note amendments. 2020 work program is still being finalised.
27 Apr 2020other▼ BadMajor
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.
26 Mar 2020debt financing● NeutralMajor
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.
17 Mar 2020other● Neutral
900,000 unlisted employee options (strikes $0.195 to $0.495) expired. Shares on issue stay at 590,601,954. Administrative only.
13 Mar 2020half year report● Neutral
Half-year to 31 December 2019: sales revenue $11.0m (down from $13.1m a year earlier), with gas averaging 8.0 TJ/d after normalising for the 26-day plant outage. The $15m Santos payment was received. Mostly restates known operating results.
12 Mar 2020director officer appointment▲ GoodMajor
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.
12 Mar 2020debt financing▼ BadMajor
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.
11 Mar 2020regulatory community update▲ GoodMajor
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.
18 Feb 2020resource reserve update▲ GoodMajor
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.
3 Feb 2020quarterly activities report● Neutral
December quarter: Kincora revenue $7.1m (up from $6.0m) and average gas production 7.5 TJ/d. The $15m Santos payment was received. Myall Creek North 1 completion is now expected in February 2020. The 2020 work program is being planned.
17 Jan 2020flow test result▲ GoodMajor
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.
6 Jan 2020flow test result▲ GoodMajor
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.
24 Dec 2019flow test result▲ GoodMajor
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.
16 Dec 2019other● Neutral
7,875,000 unlisted employee options (strike $0.195 to $0.495) expired on 14 December per the Appendix 3B. Shares on issue are 590,601,954. Administrative only.
11 Dec 2019production update● NeutralMajor
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.