Armour Energy Ltd., Brisbane, has executed the acquisition of all of Oilex Ltd.’s exploration acreage in the Cooper/Eromanga basins of South Australia (OGJ Online, May 29, 2020).
The deal comprises the acquisition of all the issued capital of CoEra Ltd., the Oildex subsidiary that held the Cooper basin permit interests.
Armour will issue to Oilex a minimum of 24.5 million and a maximum of 34.5 million Armour shares depending on the Armour share price for 90 days from execution. The variance is designed to deliver a figure of $906,500 (AUS.) in Armour shares to Oilex. Oilex is expected to hold 4-5.5% of Armour’s issued share capital.
Armour will pay Oilex $125,000 (AUS.) in cash for past exploration costs within 60 days.
CoEra’s Cooper basin assets include 79.33% interest in two permits (PEL 112 on the Western Flank oil and wet gas fairway and PEL 444 on the Northern Flank wet oil and gas fairway) which cover 1,086 sq km and 1,166 sq km, respectively, together with an option to acquire the remaining 20.66% in each permit.
Armour also will acquire 100% of 27 petroleum retention leases covering a total of 2,445 sq km, along with 792 sq km of 3D seismic data by assuming Oilex’s obligations under pre-existing arrangements between Oilex and Senex Energy Ltd.
Armour will re-evaluate the existing technical data as well as acquire new data to identify stratigraphic trends and enhance understanding of multiple potential reservoir zones and targets.
With the deal, Oilex no longer holds any interests in the Cooper/Eromanga basins. The company will focus its exploration efforts on Indian and continental UK assets.
