Armour Energy Taking Strategic Initiatives to Fund its Australian Assets

Armour Energy has said that it is undertaking a number of strategic initiatives to successfully explore and develop its highly prospective assets in 2014 in both northern Australia and Victoria. 

These initiatives include arrangements to most effectively fund the next stage of its planned field activities and a rigorous review of organisational requirements and associated costs to ensure the company’s cash resources are managed in a most effective manner. The  company’s Directors have agreed to a 33% reduction of their Board Fees, and the company’s management have agreed for 20% of their base remuneration to be paid by way of shares in the company.

“The company intends that its projects in Queensland and the Northern Territory continue to be explored including the restart of the production test on Egilabria‐2, the first well in Australia to flow gas from a horizontal, hydraulically stimulated shale formation.  The production test was suspended in November last year in view of the onset of the wet season,” Armour said.

In Victoria, work scheduled for 2014 includes the drilling of the Otway‐1 well, subject to receipt of final Victorian government approval.   

The Otway‐1 well is located in very close proximity to the Ioana gas processing plant and, if successful, could provide a short term monetisation route, the company said.  

The company has been approached by other industry participants, and is accordingly investigating opportunities for involvement of other parties in its northern Australian acreage. 

“The company confirms it is in discussions with a number of parties which, if successfully concluded, would result in further funds being available to support future exploration and development activities,” Armour said. 

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