Jun 16, 2020

Armour expands portfolio, launches fundraising

Armour expands portfolio, launches fundraising SMS workover rig at Armour's Myall Creek #5A well in the Surat Basin

Armour Energy is on the march with the takeover of a raft of Cooper Eromanga Basin assets and a boost in reserves at its Kincora gas project in the Surat Basin.

The company has just launched a capital raising and announced the appointment of a new chief executive officer as well.

Armour yesterday reported it had executed a share sale agreement with Oilex equivalent to $906,500 for the acquisition of all the issued capital in CoEra.

This brings Armour a substantial footprint of exploration and production licences on the oil-rich Western and Northern Flanks of the Cooper Basin.

Completion of the sale agreement is subject to a number of conditions.

Armour has also announced the commencement of new chief executive officer Brad Lingo, who has 30 years’ experience in a diverse range of oil and gas leadership roles, including as managing director and chief executive officer of Drillsearch Energy.

Armour Energy’s new CEO Brad Lingo.

The appointment comes as the company launches a capital
raising, comprising a share placement and an accelerated non‐renounceable entitlement offer.

The capital raising consists of:

  • an initial placement to raise approximately $3.36 million;
  • an underwritten non‐renounceable, pro rata entitlement offer to raise approximately $4.53 million; and
  • the company may undertake an additional Conditional Placement to raise up to $2.1 million.

It said the funds raised would go towards progressing the Kincora
project area well intervention and work program as well as other costs and for general working capital.

Armour Energy provided a reserve update to the market last week on its Kincora project, showing a 22 per cent increase in 2P gas reserves to 150.3 PJ.

It said successful hydraulic stimulation of Myall Creek 5A, the drilling of the Horseshoe 4 gas well and ongoing geological and reservoir studies across the greater Kincora Project had contributed to the upgrade.

Armour acquired the project from Origin Energy in 2015 and has a Gas Supply Agreement (GSA) with APLNG for up to 10TJ/d over five years to 2023.