Armour Exits North Oz Permit
Sydney-listed Armour Energy has sold its remaining 30% interest in a portion of the South Nicholson basin project to Santos for A$12.25mn (US$9.6mn), it said on December 22.
Under the binding term sheet, 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 will receive an initial A$3mn when the term sheet is executed and a further A$9.25mn in cash when customary conditions are met. It retain full ownership and operatorship of ATP(A) 1107.
The South Nicholson project spans 40,751 km2. Armour’s net acreage position in the project will be reduced by around 35% from 12,225 km2 to 7,906 km2 as a result of this transaction, it said. The deal is expected to be completed by January 31 next year.
“With the completion of this additional transaction, over the last 12 months, the company has received A$33.25mn in cash proceeds in relation to the South Nicholson basin project, whilst retaining 100% ownership and operatorship of ATP(A) 1107,” Armour said.