Armour Energy to Sell Remaining Stake in South Nicholson
Armour Energy South NicholsonFinbrook

Armour Energy to Sell Remaining Stake in South Nicholson

Armour Energy Limited announced execution of a sale and purchase agreement for a further sale of the Company’s remaining 30% interest in a

Armour Energy Limited announced execution of a sale and purchase agreement for a further sale of the Company’s remaining 30% interest in a portion of the South Nicholson Basin Exploration Project to Santos QNT Pty Ltd. The South Nicholson Basin Exploration Project area covers approximately 40,751 square kilometers.

Under the SPA, Santos will acquire 100% ownership of ATP 1087 of which Santos currently holds a 70% interest and is operator and the application permit areas in Queensland ATP(A) 1192 and 1193 and the Northern Territory tenements EP(A) 172 and 177. As consideration, Armour has received an initial payment of $3 million upon execution of the term sheet, with a further $9.25 million in cash to be received upon completion of customary conditions precedent and will re-acquire full ownership and operatorship of ATP(A) 1107.

ATP(A) 1107 covers 7,906 km2 of the South Nicholson Basin Exploration Project. Armour’s net acreage position in the South Nicholson Basin Exploration Project will reduce by only approximately 35% from 12,225 km2 (30% of 40,751 km2) to 7,906 km2 as a result of this transaction, whilst also receiving $12.25m in cash proceeds.

Completion of the sale of the South Nicholson Basin Exploration Interests to Santos is expected by 31 January 2021. With the completion of this additional transaction, over the last 12-months, the Company has received $33.25 million in cash proceeds in relation to the South Nicholson Basin Project, whilst retaining 100% ownership and operatorship of ATP(A) 1107. Receipt of these sale proceeds has enabled the Company to reduce outstanding long-term debt by 28% from $62 million to $44 million (reflecting additional accelerated amortisation of the Senior Secured Amortising Bonds after the application of proceeds from the sale of the additional South Nicholson Basin interests to Santos.

No stories found.
SteelGuru Business News
www.steelguru.com