DGR Global to provide A$4.5mn finance facility to Armour
Sydney-listed resources company DGR Global has reached an agreement to provide a A$4.5mn ($3mn) finance facility to Australian oil and gas producer Armour Energy, it said on July 6.
DGR at present owns 18.37% of the issued capital of Armour. In addition, DGR holds A$2.5mn or 10% of Armour’s bonds on the issue and has a further A$2mn invested in Armour’s subsidiary MacArthur Oil and Gas redeemable exchangeable notes.
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The facility being provided by DGR is able to be drawn by Armour over the next three months and the funding is to be provided by way of a placement of redeemable exchangeable notes to be issued by McArthur, at an issue price per note of A$1.
“DGR has long held the view that the east coast Australian gas market exhibits compelling long-term fundamentals,” the company said. “Armour Energy is well placed over the long term to take advantage of these fundamentals with the company’s fully integrated reservoir to grid infrastructure centred on and around the Kincora gas processing facility south of Roma in Queensland’s prolific Surat basin.”
DGR said it will be utilising existing cash reserves to meet its obligations to Armour under this financing facility.