Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
a
Directors' report continued
for the year ended 30 June 2020
REMUNERATION REPORT (AUDITED) CONTINUED
OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL AND THEIR RELATED
PARTIES CONTINUED
Bizzell Capital Partners Pty Ltd continued
Under the agreement, Bizzell Capital Partners Pty Ltd will received a management fee of one (1) percent of the funds raised under
the entitlement offer, the placement and conditional placement, an underwriting fee of five (5) percent of all new shares issued
under the entitlement offer, a placement fee of five (5) percent of all new shares issued and any funds raised under the Conditional
Placement and an option fee representing 4 options for every $1 raised pursuant to the Placement and Conditional Placement
(subject to shareholder approval).
Samuel Holdings Pty Ltd
Son 15 June 2020, it was announced that The Entitlement Offer was expected to partly be sub-underwritten by Samuel Holdings Pty
Ltd (as trustee).
Samuel Holdings Pty Ltd has agreed to sub-underwrite up to 60,933,755 New Shares of the Shortfall, on the basis that no New
Shares will be issued that would result in Samuel Holdings Pty Ltd and its associates to have in aggregate no more than 20% of the
Voting Power of the Company. Samuel Holdings Pty Ltd will receive a fee of five (5) percent of the sub-underwritten amount from
Bizzell Capital Partners and Armour will issue four (4) Underwriter Options for every $1 of the sub-underwritten amount, subject to
Shareholder approval.
Other than the above, there were no other transactions with Key Management Personnel for the year ended 30 June 2020.
THIS CONCLUDES THE REMUNERATION REPORT, WHICH HAS BEEN AUDITED.
EVENTS AFTER THE REPORTING DATE
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.
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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 $6 million in total in full consideration of all future contingent permit transfer payments covering the Application Areas.
On 15 Augusts 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.
DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year or since the end of the year.
ENVIRONMENTAL REGULATION
Armour is subject to significant environmental regulation in relation to its operations. Armour has conducted an extensive review
of the environmental status of the Surat Basin processing plant and associated exploration and production fields, used for the
production of Oil, Gas, LPG and Condensate, and has estimated the potential costs for future restoration and abandonment to be
$6,688,065.
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INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the
Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of
the nature of the liability and the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company
or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any
related entity.
Armour has complied with the conditions of its various Environmental Licences to Operate under the Environmental Protection Act
1994, through the implementation of its Health, Safety and Environmental Management System (HSEMS) and assurance processes.
During the financial year, the Kincora Gas Project recorded three recordable incidents. Armour Energy has not received any
formal notices or penalties from regulatory authorities during the period but is still waiting for Regulator close out in regard to the
prescribed incident (small uncontrolled gas leak).
Regulator Inspections of our operating sites by the Department of Natural Resources, Mines and Energy (DNRME) has not
determined any regulatory noncompliance and Armour continues to work with the regulators to meet obligations.
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