Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Chairman's report continued
This bodes well for Armour's future and the Company is exceptionally well positioned to capture opportunities created by this
uncertainty in both terms of price and sales volumes through a combination of successful production enhancement projects and
maximizing the value of the unique position of the Newstead Gas Storage Project.
Again, I welcome Brad Lingo on board as CEO and look forward to working with him to deliver the above priorities. I would like to
thank my fellow Board members and the Company's dedicated work force for another year of hard work. I also want to thank the
Company's shareholders and external stakeholders for their continued support and patience during this time. Together, we will
transform Armour Energy into one of Australia's premier oil and gas exploration and production companies recognised for its keen
eye on quality assets and commitment to delivering for shareholders.
Operating and financial review
for the year ended 30 June 2020
EXECUTIVE SUMMARY
Armour Energy Limited (the Company) and its controlled entities (Armour) is focused on the exploration and production of gas
and associated liquids resources. The Company's prior and current work programs aim to increase liquid rich gas production and
revenues while focussing on becoming one of Eastern Australia's most prominent onshore Oil and Gas explorers and producers.
Northern Basins
NT- McArthur Basin 100% Operator
12 permits covering approx. 89,000km
Multi-TCF Conventional & Unconventional Gas Resource
Conventional Gas Discoveries
Multiple Plays
Glyde, Cow Lagoon & Lamont Pass Gas Discoveries
QLD/NT- South Nicholson Basin 30% Non-operated
JV with Santos; 6 permits covering approx. 22,720km
A$65 million Free Carry
Darwin
Surat Basin
100% Operator
Various Non-operator
Kincora Gas Plant
Newstead Gas Storage
Multi-TCF Tight Wet Gas Resources
.Conventional Wet Gas Production.
Low CO2 sales gas spec production
Significant Liquids
Yours sincerely,
Mallin
Nicholas Mather
Executive Chairman
For personal usPIATY
4
*
Brisbane HQ
Perth
Gas/Oil Production
Appraisal / Development
Exploration
Infrastructure
W.A.
armourenergy
Moomba
Gas Hub
S.A.
Cooper Basin
100% Operator
Multiple Permits Covering 5,242 km²
•Western Flank Oil
Adelaide
Northern Flank Oil & Wet Gas
Paning Tight Gas Discovery
Significant 3D Seismic Coverage
• Deep Portfolio of 3D Controlled Leads & Prospects
QLD
Gladstone
N.S.W
Hobart
Wallumbilla
Gas, Hub
Sydney
Canberra
Brisbane
Southern Basins
Operated/Non-operator
Onshore Otway 51% Operator
Onshore Gippsland 25% Non-operated
•Conventional gas proximate to infrastructure
.15% in wombat tight gas discoveries
•Major Shareholder- Lakes Oil
Figure 1 Summary of Armour's
assets and locations
KEY ACHIEVEMENTS
SURAT BASIN - KINCORA
Material increase in the Company's 2P sales gas reserves to 150 PJs - a 22% increase.
Annual revenue of $21.1m, a decrease of 24.1% from $27.8m in the previous financial year driven primarily by weakening gas
prices (0.7%) and sales gas production declines (20.4%).
Successful hydraulic stimulation of Myall Creek 5A was completed and connected in December 2019 across the Lower
Bandana and Upper Tinowon formations. Flowback operations commenced and achieved an initial production wellhead rate
(IP30), of 3.2 TJ per day.
Drilling of two development wells, Myall Creek North #1 and Horseshoe 4.
EXPLORATION - FARMIN AGREEMENT
"
During the year, a farmin agreement was executed between Armour and Santos QNT Limited (Santos) for 70% of the South
Nicholson Basin tenements.
As part of this agreement the Armour has received $21 million in cash payments and a 4-year free carry for a $65 million
exploration program.
EXPLORATION BLOCK - ATP2046
"
Petroleum Lease No. 1084 (PL1084) granted to Armour Energy and Australia Pacific LNG Pty Ltd (APLNG).
An agreement was completed with APLNG for the sale of Armour's 10% interest in Petroleum Lease 1084 known as the
"Murrungama block" in the Surat Basin Queensland for a total of $4 million.
LO
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