APLNG Buys Armour's Stake in Oz CBM Block

Sydney-listed Armour Energy said on June 18 it had signed an sales and purchase agreement to transfer its 10% interest in the  Murrungama block (PL1084) in the Surat Basin in Queensland to Australia Pacific LNG (APLNG).

Under the terms of the pact, APLNG will pay an initial deposit of A$0.5mn within five business days of execution of the agreement with a further $3.5mn payable to Armour upon satisfaction of certain customary completion conditions.  In the event that completion does not occur within six months, Armour must refund the deposit to APLNG, the transfer of the 10% interest will not be effected and the joint venture will remain on foot. The block was awarded to APLNG and Armour joint venture in March this year.

PL1084 is an 18 km² coalbed methane exploration tenure located 22 km south‐west of Chinchilla and adjoins APLNG’s Talinga project.  The block was part of the first national tender where gas has been designated to be supplied exclusively to Australian domestic manufacturers, an initiative by the Queensland government.

APLNG is a joint venture comprising ConocoPhillips Australia (37.5%), Origin Energy (37.5%), and Sinopec (25%).