Past year: ▼ 20%(10.0c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 Dec 2019farm in farm out completion▲ GoodMajor
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.
26 Nov 2019investor presentation● Neutral
Interim CEO Fenton's AGM address and presentation restate known themes: the Santos farm-in, Kincora growth, the APLNG joint venture and the climate disclosure in the annual report. The text is truncated and no new facts are confirmed.
25 Nov 2019drilling progress report● Neutral
Myall Creek North 1's secondary Tinowon C zone tested gas and water, so it is being isolated before testing the primary Tinowon A zone. Myall Creek 5A was fracture-stimulated, and two restarted old wells add 0.4 TJ/d. Both new wells are said to be on time and on budget.
12 Nov 2019drilling result▲ GoodMajor
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.
5 Nov 2019other● Neutral
Armour issued 1,164,384 shares to settle a CEO termination payment, about 0.2% dilution. Presumably relates to Roger Cressey's departure (inference; the text does not name him). No fee was incurred.
4 Nov 2019drilling progress report▲ Good
Horseshoe 4's stuck pipe was freed on 1 November and drilling resumed, reaching 1,704 m by 3 November. Armour will set 7-inch casing, then drill to the 2,073 m target, and says completion remains on schedule barring further delay. Resolves the 31 October setback.
31 Oct 2019drilling progress report▼ Bad
Horseshoe 4 drill pipe became stuck at 1,523 m in the Hutton Sandstone. Armour is trying to free it, with a sidetrack as fallback to the 2,073 m target. This is a setback to the second well of the 20 TJ/d push, with cost and delay impact not stated.
31 Oct 2019quarterly activities report● Neutral
September quarter: average gas output 7.2 TJ/d and Kincora revenue $6.0m, down from $7.2m in the June quarter. It also covers the Santos term sheet, the $4m placement and the start of drilling. A 2020 work program is being finalised. Cash figure not in the truncated text.
28 Oct 2019regulatory community update● Neutral
Uganda's Kanywataba licence was renewed to 13 September 2021, with conditions including finishing the 2D seismic survey. The minister consented to the transfer to a project company, with Armour at 16.82%. Armour declared force majeure on 15 October because of floods, with 2D seismic work suspended.
24 Oct 2019director officer appointment● NeutralMajor
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.
22 Oct 2019other● Neutral
150,000 unlisted employee options (strike $0.215 to $0.315) expired, with an updated Appendix 3B. The filing shows 589,437,570 shares on issue. Administrative only.
22 Oct 2019drilling spud● Neutral
Horseshoe 4 was spudded on 21 October in 100%-owned PL227, to a prognosed 2,073 m vertical depth. It is the second well of the two-well program. It will be connected to the gas system after completion and flow testing. This follows the Myall Creek North 1 well.
18 Oct 2019annual report● Neutral
Re-lodgement of the FY2019 annual report (post-production version). The visible chairman's letter repeats earlier content: Kincora tenure up 51% to 3,484 sq km and Roger Cressey's resignation. Financial figures are not in the truncated text.
17 Oct 2019investor presentation● Neutral
Brisbane Resources Round-up presentation. It shows about 589M shares, $55M bond and a 7.2c share price, consistent with earlier disclosures. Text is truncated; nothing new is confirmed.
16 Oct 2019drilling result▲ GoodMajor
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.
15 Oct 2019farm in farm out agreement▲ GoodMajor
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.
15 Oct 2019investor presentation● Neutral
Presentation to the NT Energy Club on Armour's northern Australia project. The text is truncated and appears to restate known projects; no new facts are confirmed.
14 Oct 2019drilling progress report▲ Good
Myall Creek North 1 reached about 2,298 m measured depth. Elevated gas readings in the Permo-Triassic suggest liquids-rich gas-filled porosity. Logging started 14 October, then casing, completion design and a flow test. No flow result yet.
9 Oct 2019drilling progress report● Neutral
Myall Creek North 1 was at 1,885 m, about to enter the target zones (prognosed 1,930–2,100 m). Intermediate casing was installed and tested. Logging and a flow test follow; the program is now to finish before year-end. No result yet.
2 Oct 2019drilling progress report● Neutral
Myall Creek North 1 has cemented surface casing and was drilling at 1,361 m measured depth, aiming for about 2,343 m. A flow test is planned after completion. No gas result yet.
30 Sept 2019capital raising announcement● Neutral
Armour issued the 80m placement shares, a 13.6% dilution (5.9% under Listing Rule 7.1, 7.7% under 7.1A). Bizzell Capital Partners was lead manager. An entitlement offer on the same terms is still to come.
27 Sept 2019other● Neutral
Appendix 4G confirming the corporate governance statement is on the company website, lodged with the annual report. Administrative only, with no new information.
27 Sept 2019annual report● Neutral
FY2019 annual report. The chairman says Kincora is a consistent producer and plans two wells in the next three months. Roma Shelf tenure grew 51% to 3,484 sq km. He notes CEO Roger Cressey's July resignation. Financial figures are not in the truncated text.
23 Sept 2019capital raising announcement▼ BadMajor
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.
What it means for a shareholder
80.0m new shares at A$0.050 to raise about A$4.0m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.00393% to 0.00339% of the company. To keep it you'd need 3,141 more shares - about A$157 at the issue price.
Create a free account to see this worked out for your own holding.
23 Sept 2019investor presentation● Neutral
Capital raising presentation accompanying the placement. It shows about 509m shares, $55m bond, 7.2c share price and cash of about $8.1m at 1 September 2019, down from $11.4m at 31 March. The text is truncated.
23 Sept 2019drilling spud▲ GoodMajor
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.
4 Sept 2019investor presentation● Neutral
Corporate presentation to the SEAAOC conference giving a company overview, including the 10% ATP2046 interest and 17% Uganda interest. It appears to repeat known facts; the text is truncated, so nothing new is confirmed.
27 Aug 2019production update▲ Good
The Kincora plant is back online after the C101 compressor repair, and gas is back to 9 TJ/d (about 7 from wells, 2 from Newstead storage). This resolves the 6 August outage. Maintenance planned for later in the year was done during the outage. First well still due to spud in September.
19 Aug 2019drilling scheduled▲ Good
Armour contracted a rig for two development wells at 100%-owned Kincora, at Myall Creek (PL511) and Horseshoe (PL227), each about 2,100 m deep. The first is to spud in September 2019, with production planned for Q4. This follows the quarterly report's rig tender.
6 Aug 2019production update▼ Bad
The Kincora plant's C101 compressor failed, taking the LPG circuit offline and curtailing several wells. Output fell to about 2.5 TJ/d from roughly 9 TJ/d. Repairs are estimated at about two weeks.
