Past year: ▼ 20%(10.0c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
30 July 2019quarterly activities report▼ Bad
June quarter gas averaged 9.1 TJ/d, down 8% from 9.9, with revenue of $7.2m in the table (highlights say $7.9m). Armour concedes the 20 TJ/d 2019 target has been hit by disappointing recompletions and Myall Creek 4A/5A. Two new wells are planned to start in Q3.
24 July 2019director officer appointment▼ BadMajor
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.
18 July 2019investor presentation● Neutral
Noosa conference presentation largely repeating known facts. It shows cash of $11.4m at 31 March 2019, the $55m bond, about 509m shares and a 7.0c share price (market cap about $29.5m). The text is truncated.
18 July 2019asset acquisition disposition▲ Good
The Queensland block previously announced on 3 June was formally awarded as ATP2046, 18 km2 near Chinchilla, to the Armour (10%) and APLNG (90%, operator) joint venture. Each party can market its own gas. First gas is expected by mid-2021.
3 June 2019asset acquisition disposition▲ GoodMajor
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.
30 May 2019well test result▼ BadMajor
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.
30 Apr 2019quarterly activities report▲ Good
March quarter revenue was $7.67m, up from $7.32m, with gas averaging 9.9 TJ/d (8.8 previously). The $55m bond settled and the convertible notes were repaid. Plant maintenance lifted operating costs. Myall Creek 5A production is now planned for May 2019.
11 Apr 2019investor presentation● Neutral
Corporate roadshow presentation giving a company overview and capital structure snapshot. It repeats known facts; the text is truncated and no new information can be confirmed.
3 Apr 2019investor presentation● Neutral
Presentation to a Hong Kong mining conference. It repeats known points: 105 PJ (85%) of 2P reserves uncontracted and the APLNG agreement of up to 3.6 PJ/a. The text is truncated, so nothing new is confirmed.
29 Mar 2019debt financing▲ GoodMajor
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.
27 Mar 2019investor presentation● Neutral
Conference presentation repeating known Kincora facts, such as 105 PJ of uncontracted 2P reserves and the five-year APLNG gas agreement. The text is truncated, so nothing new can be confirmed.
20 Mar 2019capital raising announcement▲ Good
FIIG reports offers above the $55m target for Armour's new notes, and the offer will close at $55m. Settlement is targeted for 29 March 2019, when the existing convertible notes are to be redeemed. Documentation is still to be finalised.
19 Mar 2019capital raising announcement▲ GoodMajor
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.
15 Mar 2019half year report▲ Good
Half-year to 31 December 2018: sales revenue $13.1m (up from $3.1m a year earlier), with gas sales averaging 8.4 TJ/d. Repeats the Tribeca facility, $10.1m entitlement raise and 100% 2P reserve growth. The provided text does not include profit or cash figures.
6 Mar 2019investor presentation● Neutral
Presentation to a domestic gas conference. It cites 105 PJ of uncontracted 2P reserves and a five-year APLNG gas agreement (3.6 PJ/a). It largely repeats known Kincora facts; the text is truncated, so nothing further can be confirmed.
1 Mar 2019debt financing● NeutralMajor
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.
1 Mar 2019listing compliance notice● Neutral
ASX paused trading in Armour securities pending a further announcement. No reason is given in the notice itself; a financing announcement was released the same day.
27 Feb 2019other● Neutral
750,000 unlisted director options (strikes $0.215 to $0.315) expired because Bill Stubbs retired in November 2018. Administrative notice with updated capital structure: 508.7m shares and 373.8m convertible notes.
18 Feb 2019resource reserve update▲ GoodMajor
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.
31 Jan 2019quarterly activities report● Neutral
December quarter revenue was $7.32m (September: $7.28m), with gas sales flat at 8.8 TJ/d despite a 10-day plant shutdown. Condensate rose to 163 bbl/d. Shares on issue are 508.2m and 373.8m notes remain. Myall Creek 5A completion and connection are scheduled for the March 2019 quarter.
21 Jan 2019production update▲ Good
Armour now sells 11 TJ/d of gas, with 1 TJ/d going into the Queensland spot market at higher prices than its existing contract. Its target is up to 15 TJ/d, up from the roughly 9 TJ/d produced since February 2018.
3 Jan 2019debt default or forbearance▼ BadMajor
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).
21 Dec 2018asset acquisition disposition▲ GoodMajor
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.
13 Dec 2018drilling result▲ Good
Myall Creek 5A, drilled to 2,244.5 m, showed gas in the Triassic Basal Rewan and Permian Tinowon sandstones; logs indicate hydrocarbon saturation. The well is cased and suspended, with perforation testing planned. Armour also flags the Black Alley Shale as a possible new regional play. No flow rate yet.
6 Dec 2018material agreement▲ GoodMajor
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.
27 Nov 2018investor presentation● Neutral
AGM CEO presentation. It reports about 507m shares, 374m convertible notes and about $8.5m cash at 31 October 2018. It otherwise repeats the known Kincora and drilling story.
27 Nov 2018other● Neutral
AGM chairman's address, delivered in the absence of Executive Chairman Mather. It repeats known themes: Kincora as a reliable producer, a 2019 well program, the 20 TJ/d target, the GAP grant and the NT fracking moratorium lifting. No new facts.
27 Nov 2018director officer appointment● Neutral
Non-executive director Bill Stubbs, on the board since 2009 as DGR Global's representative, retired after the AGM. He has also recently left the Lakes Oil board. The board will consider its composition and any new appointment.
27 Nov 2018drilling result▲ Good
Myall Creek 5A reached 2,244.5 m, with good gas shows in overpressured Permian sandstones, and mudlogs indicate the zone is hydrocarbon saturated. Logging is under way and production casing will be run next. This is early indication only; no flow rate is reported.
21 Nov 2018drilling progress report● Neutral
Myall Creek 5A drilled the 8-1/2 inch section to 1,875 m after the earlier sidetrack. The 7 inch casing is being run, with the 6-1/8 inch production section to follow to 2,284 m measured depth. No production result yet.
