Armour Energy has entered into a sale and purchase agreement with Australia Pacific Liquefied Natural Gas (LNG), or APLNG, for the sale of its 10% interest in petroleum lease 1084, known as the Murrunga block, in the Surat basin of Queensland, for $4-million.
Under the terms of the agreement, APLNG will pay an initial deposit of $500 000 within five business days of the execution of the agreement, with a further $3.5-million upon satisfaction of certain customary completion conditions.
However, in the event that completion does not occur within six months, Armour must refund the deposit to APLNG, though only if the company is not in default. The transfer of the 10% will not be effected, and the joint venture will remain on foot.
Armour chairperson Nick Mather says while working with APLNG and the development of the Murrunga project is of interest to Armour, “the board has taken the decision to sell its interest in the project in order to focus its resources, both technical and financial, or Armour’s highly prospective wholly-owned and operation assets to allow for further debt reduction”.