Armour, Santos Pen North Oz Deal
Armour Energy has signed an agreement 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 January 6. The initial deal was announced last month.
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 said it has received an initial A$3mn with the execution of the deal and will receive a further A$9.25mn in cash when customary conditions are met. Armour retains full ownership and operatorship of ATP(A) 1107. The deal is expected to be completed by the end of this month.
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.