Armour Energy Limited (ASX:AJQ) is a junior energy producer and explorer with assets across northern, southern and eastern Australia. On a strategy of increasing its focus on its Surat and Cooper basins programmes, the company is progressing well through the initial phase of Surat workover activity. We highlight the innovative financing and partnering agreements enabling the company to undertake the production enhancement strategy, capturing upside whilst preserving capital and minimising equity dilution. Initial results are encouraging with Warroon-1 ‘free-flowing’ gas, with rates increasing as the clean-up activity continues. The gas operating environment underpins a strong economic opportunity with a continuing supply squeeze and persisting high prices. AJQ remains well positioned to benefit from planned work programmes over the next 12 months. Success in the Surat campaign, in particular, can deliver tangible production upside and lift confidence weightings across what will likely be a multi-year prospect portfolio.
08 Feb 2022
Warroon-1 delivers free-flowing gas
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Warroon-1 delivers free-flowing gas
Armour Energy Limited (AJQ:ASX) | 0 0 -4.7% | Mkt Cap: 32.8m
- Published:
08 Feb 2022 -
Author:
Finola Burke | Andrew Williams -
Pages:
4
Armour Energy Limited (ASX:AJQ) is a junior energy producer and explorer with assets across northern, southern and eastern Australia. On a strategy of increasing its focus on its Surat and Cooper basins programmes, the company is progressing well through the initial phase of Surat workover activity. We highlight the innovative financing and partnering agreements enabling the company to undertake the production enhancement strategy, capturing upside whilst preserving capital and minimising equity dilution. Initial results are encouraging with Warroon-1 ‘free-flowing’ gas, with rates increasing as the clean-up activity continues. The gas operating environment underpins a strong economic opportunity with a continuing supply squeeze and persisting high prices. AJQ remains well positioned to benefit from planned work programmes over the next 12 months. Success in the Surat campaign, in particular, can deliver tangible production upside and lift confidence weightings across what will likely be a multi-year prospect portfolio.