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.
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.