Armour Energy Limited (ASX:AJQ) is a junior energy producer and explorer with assets across northern, southern and eastern Australia. Pending the successful demerger and IPO of its Northern Basins’ assets via McArthur Oil & Gas (‘MOG’), AJQ will benefit from a restructured balance sheet after the injection of up to $40mn (asset transaction proceeds) and stronger focus on its Surat and Cooper basins programmes on an independently funded basis. We highlight recent innovative financing agreements enabling the company to return to its production enhancement strategy, capturing upside whilst preserving capital and minimising equity dilution. The gas operating environment continues to underpin a strong economic opportunity from a supply squeeze and higher prices; and AJQ remains well positioned to benefit from planned work programmes over the next 12 months. The company is continuing to evaluate and build what will likely be a multi-year prospect portfolio with drill-ready opportunities.
24 Nov 2021
Progressing Surat options
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Progressing Surat options
Armour Energy Limited (AJQ:ASX) | 0 0 -4.7% | Mkt Cap: 32.8m
- Published:
24 Nov 2021 -
Author:
Andrew Williams -
Pages:
4
Armour Energy Limited (ASX:AJQ) is a junior energy producer and explorer with assets across northern, southern and eastern Australia. Pending the successful demerger and IPO of its Northern Basins’ assets via McArthur Oil & Gas (‘MOG’), AJQ will benefit from a restructured balance sheet after the injection of up to $40mn (asset transaction proceeds) and stronger focus on its Surat and Cooper basins programmes on an independently funded basis. We highlight recent innovative financing agreements enabling the company to return to its production enhancement strategy, capturing upside whilst preserving capital and minimising equity dilution. The gas operating environment continues to underpin a strong economic opportunity from a supply squeeze and higher prices; and AJQ remains well positioned to benefit from planned work programmes over the next 12 months. The company is continuing to evaluate and build what will likely be a multi-year prospect portfolio with drill-ready opportunities.