Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Review of operations and activities continued
for the year ended 30 June 2020
OPERATIONS REVIEW CONTINUED
SURAT BASIN ASSETS CONTINUED
Murrungama Gas Project, Petroleum Lease PL1084 (Formerly Authority to Prospect No. 2046 (ATP2046)) -
Armour 10%
PL1084, previously known as ATP 2046, was part of the first national tender where gas had been designated to be supplied
exclusively to Australian domestic manufacturers, an initiative of the Queensland Government. The Queensland Department of
Natural Resources, Mines and Energy (DNRME) granted Petroleum Lease No.1084 (PL1084) over the former Authority to Prospect -
ATP2046 at the beginning of the 2020 calendar year.
Swate
A Joint Venture between Armour and APLNG was formed for the development of this project. PL 1084 is an 18km2 coal seam
exploration tenure located 22km south-west of Chinchilla and adjoins APLNG's Talinga Project, through which produced gas and
water will be processed. The area is surrounded by currently producing CSG fields and is anticipated to likely have similar sweet-
spot reservoir properties and production as the Talinga Gas Field. PL 1084 was granted with the specific condition that the gas
produced from PL1084 is to be sold exclusively, for local manufacturing.
Subject to the satisfaction or waiver of certain conditions, Santos will free carry 100% of Armour's share of expenditure for the
various work programs for all of the farmin permits up to a Total Capped Amount of A$64,900,000 (inclusive of the A$12.5 million
work program associated with ATP1087). However, Santos may exercise its withdrawal rights which will reduce the total capped
amount.
134 E
136
14 S
Nathan River
Armour Permit (granted)
138 E
LEGEND
Gas Pipeline
Mine
Major Road
Armour Permit (application)
+++ Railway
Town
Santos Permit (McArthur Basin)
Farmin Tenement
100
200km
Gulf
16 S-
of
Carpentaria
EP 176
16" S
Daly Waters
EPIAY 193 EP 174
McArthur River
✓EPIAZ
173
EP 190
McArthur River
EPIA) 196
EP 171
EP(A)
194
EP 192
Westmoreland
EP 191
Burketown
EP 195
In the 2020 financial year, Armour entered into an agreement with Australia Pacific LNG Pty Ltd (APLNG) to sell Armour's 10%
interest in Petroleum Lease 1084 for a total of $4 million.
-18" S
NORTHERN BASINS
South Nicholson Basin Farmin Agreement
ATP 1087 is Armour's 100% owned highly prospective shale gas play in the Isa Super Basin, well understood rock properties of up
to 11% total organic content, and stacked play opportunities. Armour has drilled 6 wells to date in ATP1087, including the Egilabria-2
well, which was an Australian first, achieving flows from a hydraulically stimulated lateral well in shale. Armour has acquired
extensive seismic and other geological data during its tenure and has drill ready targets to achieve large scale production in the
future.
For personal
14
20'S
Darwin
Tennant Creek
EP(A) 179
ATP 1087P
EP(A) 172
ATP(A) 1107P
Century
• Alexandria
EP(A) 178
ATP(A)
1192P
ATP(A)
1193P
Mt Gordon
EP(A) 177
Lady Loretta
20S-
Camooweal
Georgina
MT ISA
In December 2019, a farmin agreement was executed between Armour and Santos QNT Limited (Santos) for Armour's South
Nicholson Basin tenements, see Figure 5.
Key points below:
An initial cash payment of $A15 million, for the transfer of a 70% interest and operatorship of ATP1087 to Santos. This was
received in December 2019.
Under the farmin agreement, Santos has the right to earn a 70% interest in Armour's North Queensland tenements, being
ATP1087 (granted), and ATP1107, ATP1192 and ATP1193 (applications), and the Northern Territory tenements EP172 and EP177,
both of which are also in the application phase;
Subsequent to year-end, the Company entered into an agreement with Santos to amend the South Nicholson Basin farmin
agreement, resulting in an immediate cash payment of $6 million, received in August 2020, as an acceleration of future
contingent permit transfer payments.
Alice Springs
-22° S
NORTHERN
TERRITORY
138 E
138 E
225-
QUEENSLAND
Figure 5 Map showing the Farmin permits
within the green border
The remainder of the Company's Northern Territory exploration portfolio is not subject to, or affected by, this farmin agreement.
Northern Territory
As a result of the Northern Territory Government inquiry and moratorium, Armour has sought suspensions, extensions, and
variations to the work programs of its granted tenements in the Territory. A number of the approvals for these suspensions,
extensions and variations have been received in the financial year. Armour has developed revised work programs for its tenements
in the Northern Territory and is working with the Northern Territory Government and the Northern Land Council to establish
ongoing exploration and development activities. Armour intends to resume exploration activities and re-establish its social license
in the areas as part of the forward work program.
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