Investor Presentaiton
Armour Energy and controlled entities
Financial report continued
Notes to the consolidated financial statements continued
NOTE 39. COMMITMENTS
Capital commitments
Committed at the reporting date but not recognised as liabilities, payable:
Oil and Gas assets
Consolidated
30 June
2020
$
30 June
2019
$
6,333,398
armourenergy.com.au
To keep tenements in good standing, work programs should meet certain minimum expenditure requirements. If the minimum
expenditure requirements are not met, the Group has the option to negotiate new terms or relinquish the tenements. The Group
also has the ability to meet expenditure requirements by joint venture or farm-in agreements.
NOTE 40. CONTINGENT LIABILITIES
EXPLORATION LIABILITIES
Under the Company's native title agreement over EP 171 and EP 176, the Company is required to pay the greater of either $10,000 or
3% of exploration costs on each anniversary date.
The capital commitments related to the executed Gas Acceleration Program (GAP) with the federal government, which aims to
increase gas supply to the domestic gas market. The agreed work program consists of accelerating one production well and drilling
three additional production wells at the Group's Kincora Project. The program finished in October 2019 and therefore there are no
further amounts committed.
Lease commitments - operating
Under the Company's native title agreement over EP 174, EP 190, EP 191 and EP 192, the Company is required to pay the greater of
either $5,000 or 3% of exploration costs on each anniversary date.
Under the Company's native title agreement over ATP 1087, the Company is required to pay the greater of either:
$50,000, or:
3% of exploration costs within the preceding financial year; and 1.5% of the exploration costs incurred in the Shared Area
within the preceding financial year.
Committed at the reporting date but not recognised as liabilities, payable:
Within
one year
One to five years
For personal use only
110
Lease commitments - finance
207,873
150,871
Other than the above, the Group had no other contingent assets or liabilities at 30 June 2020.
NOTE 41. EVENTS AFTER THE REPORTING PERIOD
358,744
Committed at the reporting date and recognised as liabilities, payable:
Within one year
38,381
28,786
One to five years
Total commitment
Less: Future finance charges
Net commitment recognised as liabilities
Exploration Expenditure Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
More than five years
67,167
67,167
13,451,427
33,037,547
18,442,987
37,477,283
1,810
46,488,974
55,922,080
CAPITAL COMMITMENTS
The Group has certain obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied
from time to time and are expected to be fulfilled in the normal course of operations of the Group.
Other than the below subsequent events, no other matter or circumstance has arisen since 30 June 2020 that has significantly
affected, or may significantly affect Armour's operations, the results of those operations, or Armour's state of affairs in future
financial years.
"
On 1 July 2020, Armour announced that Cordillo Energy Pty Ltd, a 100% subsidiary of Oilex Limited and one of the companies
include in the Oilex transaction with Armour, was successful in bidding for Block CO2019-E in the Northern Flank of the
Cooper Basin, South Australia.
On 10 July 2020, the Company announced a further extension to the closing date of the Entitlement Offer to 5 August 2020.
On the 18 September 2020, the Company announced that it had successfully completed the capital raising and will raise a
total of $15 million, subject to necessary approvals.
On 27 July 2020, the Farmin Agreement between the Company and Santos QNT Pty Ltd was amended to accelerate
payments relating to the permit award process, resulting in Santos made a one-off, unconditional accelerated cash payment
of $A6 million in total in full consideration of all future contingent permit transfer payments covering the Application Areas.
On 15 August 2020, the Company received the second payment of $3.5 million from the Sales and Purchase Agreement with
Australia Pacific LNG Pty Ltd for the sale of Armour's 10% interest in Petroleum Lease 1084 known as the "Murrungama
block" (PL1084).
As a result of the above asset transactions, Armour made a $5.3 million early principal amortisation payment on the Secured
Amortising Notes during August 2020.
On 18 August 2020, Armour executed a term sheet with Auburn Resources Limited, a public, unlisted company, for the sale of
Ripple Resources Pty Ltd, for 5,600,000 fully paid shares in Ripple Resources Pty Ltd.
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