Sydney-listed Armour Energy has completed the deal to sell its remaining 30% interest in a portion of the South Nicholson project to fellow Australian explorer Santos for A$12.25mn (US$9.6mn), it said on February 4. The agreement was signed in January while the initial deal was inked in December.  

Santos' interest in permit ATP 1087 will rise from 70% to 100%. It will also gain 100% control of application permit areas in Queensland ATP(A) 1192 and 1193 and the Northern Territory tenements EP(A) 172 and 177. Armour retains full ownership and operatorship of ATP(A) 1107. 

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Armour said that the sales proceeds will help the company to further reduce its outstanding long-term debt by approximately A$6.08mn.  "The completion of the South Nicholson basin sales to Santos and the further long-term debt reduction is a good way to start 2021 and a clear indication of the Company's commitment to strengthen the balance sheet," Armour CEO Brad Lingo said. "The company is fully focussed on delivering on the strategic priorities we outlined in August 2020 – both and the delivering increased production in our core Kincora gas project and debt reduction."  

The South Nicholson project spans 40,751 km². Armour’s net acreage position in South Nicholson will be reduced by around 35% from 12,225 km² to 7,906 km² as a result of this transaction, it said.