Investor Presentaiton
Armour Energy and controlled entities
Review of operations and activities continued
for the year ended 30 June 2020
OPERATIONS REVIEW CONTINUED
NORTHERN BASINS CONTINUED
Northern Territory continued
Gas Pipeline
Mine
Major Road
Railway
Town
LEGEND
Armour Permit (granted)
Armour Permit (application)
100% Armour Permit
personal use only
Nathan River
0
100
200km
EP 176
Daly Waters
McArthur River
EPLAY 183 EP 174
Gulf
Carpentaria
16S-
EPIANZ
173
EP 190
McArthur River
EP 171
EP(A)
194
EPLAY 196
EP 192
Westmoreland
EP 191
Burketown
EP 195
EP(A) 172
ATP 1087P
ATP(A) 1107P
EP(A) 179
Century
Alexandria
EP(A) 178
ATP(A)
1192P
Tennant Creek
ATP(A)
1193P
Mt Gordon
EP(A) 177
Lady Loretta
20S-
Camooweal
Darwin
Alice Springs
Georgina
MT ISA
armourenergy.com.au
COOPER EROMANGA ASSETS
Acquisition of Cooper Eromanga Basin Assets
The Company announced on 15 June 2020 that the share sale agreement with Oilex Ltd ("Oilex") for the acquisition of all the
issued capital in CoEra Ltd had been executed by the parties. CoEra's assets comprise a substantial footprint of exploration and
production licences on the oil rich Western and Northern Flanks of the Cooper Basin, refer Figure 7.
The basin historically has a high exploration success rate, low cost development pathways, and remains under-explored and under-
developed. Proven oil fairways transect and lie adjacent to the licence areas subject of the proposed acquisition and the many
nearby discoveries and fields provide analogues for future discoveries.
The acquisition consideration will include the issue to Oilex (or its nominees) of a minimum of 24.5m shares and a maximum
of 34.5m shares in Armour, subject to the VWAP of the Armour share price for a period of 90 days from the execution of the
Term Sheet. The variance is designed to deliver a closing consideration of $906,500 in Armour shares to Oilex, subject to the
aforementioned maximum and minimum parameters.
Completion of the sale agreement is subject to a number of conditions. The conditions include that the issue of the shares to
Oilex will be subject to any necessary Armour shareholder or regulatory approvals, and the shares issued will also be subject to a
12-month voluntary escrow.
On 20 July 2020, Armour announced that Cordillo Energy Pty Ltd ("Cordillo") had been successful in bidding for Block CO2019-E
(PELA 677) ("Block C") in the northern flank of the Cooper Basin in South Australia (see map below). Gazettal Block C forms one
of five hydrocarbon exploration licence blocks released for competitive bidding by the South Australian Department of Energy and
Mining ("DEM") in 2019.
SADEM Leads
and Prospect
Oil
Gas
Senex
PRLS
Gasfields
Oilfields
Oil Pipeline
2019-C
16
NORTHERN
TERRITORY
22S-
QUEENSLAND
Figure 6 Northern Territory acreage outlined
in purple.
Armour's McArthur Basin project area represents the largest and most important part of the Northern, Central and Southern
McArthur Basin where the thickest and most oil and gas prone sections of the McArthur and Tawallah source rocks are present.
The Company is progressing three (3) retention licence applications over portions of granted licences EP 171, 176 and 190 (see
Figure 6). Reported conventional discoveries to the Minister of flowing hydrocarbons from the Cow Lagoon-1, Lamont Pass-3 and
Glyde-1 wells allow parts the licences to be progressed to commercial petroleum licences. Retention licences are an intermediate
step to commerciality, allowing for further appraisal works, marketing arrangements, pipeline feasibility studies, environmental
studies, land access and Native Title approvals. Once completed, a final investment decision to progress to a petroleum license
can be made by the Company. The retention licences each provide security over 12 blocks that are not subject to legislative
reductions and will cover broad areas where conventional and unconventional hydrocarbon prospects and discoveries have been
through capital work programs.
As noted previously, Armour is marketing other farmin opportunities covering its McArthur and Glyde Basin tenements as per
Figure 7, where the purple outline highlights Armour Energy's 100% Tenure.
PEL 112
50km
PEL 444
Block C
Figure 7 Location map of the Cooper Eromanga assets
Lake Yi
Cusinier
Cook
Cordillo 3D
PEL 444
Flax
Juniper
Panning Gas
Discovery
Acrasia &
Reg Sprigg
17View entire presentation