Armour ropes in partner for Surat basin acreage
Sydney-listed Armour Energy has agreed on indicative terms with fellow Australian explorer Gas2Grid to farmin to 519 km2 of Surat basin acreage in Queensland, it said on November 22.
Gas2Grid's total investment will be in excess of A$12mn ($8.7mn), including the drilling of three new wells, fracture stimulation, and funding 100km2 of new 3D seismic. Upon completion of the funding obligations, Gas2Grid will earn a 50% interest in the Riverside and Myall-Bainbilla blocks.
In partnership with Gas2Grid, Armour intends to acquire a total of approximately 400 km2 of new 3D seismic, it said.
The agreement is non-binding, allowing the parties three months to prepare binding documentation. The document will include farmin agreements, joint operating agreements, and a gas processing and transportation agreement to enable Gas2Grid to process and transport its 50% share of gas production.