Armour Energy is selling its stake in Surat Basin’s Murrungama block to Australia Pacific LNG for a total of $4 million.
The coal seam gas exploration tenure is located 22km south-west of Chinchilla and adjoins APLNG’s Talinga Project
Armour and APLNG were awarded authority to prospect on the ground in July 2019 by the State Government after a successful joint tender bid.
They were subsequently granted PL1084 over the former ATP 2046 in March 2020, with Armour holding a 10 per cent non-operated interest.
“While working with APLNG and the development of the Murrungama project was of interest to Armour, the board has taken the decision to sell its interest in the project in order to focus its resources, both technical and financial on Armour’s highly prospective 100 per cent owned and operated assets and to allow for further debt reduction,” Armour chairman Nick Mather said.
“We are thankful to APLNG for the opportunity to work together on the project, and look forward to continuing our relationship in the future including through the ongoing Gas Sales Agreement with APLNG from Armour’s Kincora Gas Project.”
Under the terms of the sale and purchase agreement, APLNG will pay an initial deposit of $0.5 million within five business days of execution of the Agreement with a further $3.5 million payable to Armour upon satisfaction of certain customary completion conditions.