Armour Energy Ltd. has executed sale and purchase agreements to acquire the oil and gas interests of Origin Energy on the Roma Shelf in the Surat Basin of Queensland, Australia, for $9.1 million (AUD 13 million) as an initial payment of $7 million (AUD 10 million), then $2.1 million (AUD 3 million) (in $0.7 million or AUD 1 million annual tranches over three years) from the first anniversary of gas sales.
Among the assets to be acquired include Origin’s interests in 19 production licenses (seven non‐operated), four authorities to prospect (ATPs), and four petroleum pipeline licenses.
Certain joint venture interests being acquired are subject to pre‐emptive rights. In relation to JVs with Santos Ltd., preemptive rights have been waived. Of the remainder, Armour may not be able to acquire interests in those tenements depending on whether these preemptive rights are exercised or waived by the JV partners.