Armour to Acquire Oilex's Oz Assets

Sydney-listed Armour Energy has entered a conditional binding term sheet to acquire all of fellow Australian explorer Oilex’s interests in the Cooper-Eromanga Basin, it said on May 28 in a statement. Armour will issue up to 34.5mn shares to Oilex to fund the transaction.

As per the agreement, Armour will acquire 100% of the issued capital of CoEra, a wholly owned subsidiary of Oilex. CoEra’s assets include an approximate 79.33% interest in petroleum exploration licence (PEL) 112 and PEL 144, together with an option to acquire the remaining 20.66% interest in each of these PEL’s. In addition, Armour will also acquire a 100% interest in 27 petroleum retention licences (PRL) from Senex Energy.

Last month, Oilex’s deal to sell its assets in Cooper-Eromanga basin to fellow Australian explorer Doriemus had collapsed after the latter failed to secure funding for the deal. Oilex's purchase of Senex's rights at the 27 PRLs has also run into difficulty, with the pair agreeing on April 3 to push back the deadline for closing the transaction by six months to September.