# AJQ - Armour Energy



## System (23 April 2012)

Armour Energy Limited (AJQ) is focussed on the discovery and development of world class gas and associated liquid resources in an extensive and recently recognised hydrocarbon province in northern Australia. The Company intends to ultimately apply proven modern Shale Gas technologies to these previously lightly explored areas.

http://www.armourenergy.com.au


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## Joules MM1 (23 April 2012)

thanks for opening the thread, Joe

http://www.proactiveinvestors.com.a...-to-hit-exploration-ground-running-27943.html


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## prawn_86 (10 August 2012)

After falling from IPO of 50c down to 20c (cash backing) they jumped >80% today on the back of a good gas discovery at the Glyde well.

They also hold about 10% of LKO so some indirect exposure there


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## prawn_86 (13 August 2012)

Would be interested in chartists opinion of this one. Consolidation now after a big jump on friday? Or is it distribution with people slowly getting out?

Still not above original IPO price, but huge volumes turned over in the last 2 trading days


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## prawn_86 (10 January 2013)

Up nearly 15% in 2 days with no news out. Anyone else watching these?


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## Out Too Soon (10 January 2013)

prawn_86 said:


> Up nearly 15% in 2 days with no news out. Anyone else watching these?




Yep, came up in a scan 2 days ago, now realise another opportunity missed 

(PS: may run up higher, don't know the chart like the crystal ball is being ambiguous)


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## prawn_86 (6 February 2013)

For anyone interested these guys own about 15% of LKO which explains the rise in the recent days, but their NT and QLD projects are quite interesting in their own right and they have 18m or so worth of cash


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## ParleVouFrancois (8 February 2013)

Prawn closer to 18-19% as per their recent announcement. Great tenements and assets, fully cash funded for 2013 drilling program, Gina in the mix for Lakes Oil (buying up the LKO bonds) and having said that shale oil in Australia is a nice place to be, their NT Tenements near Gove are being considered for the Rio Tinto Refinery, Otway-1 underway (in JV with LKO) in Victoria, if a success potential for some very soon cashflow for both companies.

Very interesting and I hold.


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## prawn_86 (11 February 2013)

Closing on its daily high takes it to its highest point in nearly 9 months. Appears to be heading back towards its float prices of 50c maybe...


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## So_Cynical (3 March 2014)

prawn_86 said:


> Closing on its daily high takes it to its highest point in nearly 9 months. Appears to be heading back towards its float prices of 50c maybe...




12 months on and sadly for those holding the share price has crashed to around 16c ~ so much potential has turned into disappointment...its a real punt with explorers.



ParleVouFrancois said:


> Very interesting and I hold.




Have you sold PVF?


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## ParleVouFrancois (20 April 2014)

Holding the options since Feb last year, currently looking pretty grim for them, unless management has a good flow from E#2 and then announces a good farmout arrangement.


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## Paavfc (10 February 2015)

AJQ looking to be well off its lows and awaiting a substantial Tax decision to shore up the coffers.
Top management and ready to lift its game imo...


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## greggles (21 March 2019)

AJQ poking its head above resistance at 9c today. 

The company intends to raise $55 million via the issue of secured and amortising notes and yesterday it announced that it has been notified by FIIG Securities Limited (manager) that it has received offers for the sale of New Notes in excess of the targeted amount of $55m, and is in the process of formalising the closure of the offer at the agreed level of $55m.

Proceeds from the issue of the New Notes will be applied to the redemption of all of the existing Convertible Notes on issue (including those held by funds managed by M.H. Carnegie & Co Pty Ltd on the terms outlined in the Company’s previous market releases) with the balance of funds retained for working capital and field program expenditure.

Good news for AJQ and a vote of confidence in the company by investors.


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## Dona Ferentes (17 March 2021)

_in a Trading Halt, raising Capital, Demerge to separate producing assets + infrastructure and selling its 96,000 sq.km. tenement holdings into a new company McArthur Oil and Gas._

*Proposed Demerger of Northern Basin Oil & Gas Business (03 Mar 2021)*

HIGHLIGHTS:
• _Unlocking unrecognized value for shareholders through proposed demerger and separate ASX listing of Armour’s Northern Basin Oil & Gas Business. 
• McArthur Oil & Gas Ltd – a new company – is proposed to be created to hold the Northern Basin Oil & Gas Business and demerged from Armour through an in-specie share distribution to existing shareholders. 
• IPO and capital raise of $60-$65 million for McArthur Oil & Gas proposed to fund acquisition of Northern Basin Oil & Gas assets from Armour and to fund forward exploration.   
• Proposed total consideration of $40 million cash plus a minimum of 33.3% retained interest by Armour shareholders in McArthur Oil & Gas. The consideration received by Armour will be used to retire its outstanding debt. 
• As part of the IPO and, subject to Armour shareholder approval, Armour intends to distribute on a tax-effective in-specie basis shares in McArthur Oil & Gas of a minimum of 33.3% by a return of capital to existing shareholders of Armour and will provide shareholders with a direct interest in two separately listed companies.   
• Armour shareholders expected to also be provided a priority entitlement to participate in the IPO of McArthur Oil & Gas. 
• McArthur Oil & Gas proposed to be the dominant exploration license holder in McArthur Basin with 13 permits covering ~89,000 km2 and major holding in South Nicholson Basin with 1 permit covering ~7,900 km2. 
• McArthur Basin has proven conventional and unconventional shale gas resources with a focus on near term production development opportunities from existing conventional discoveries. 
• Independently certified Prospective Resources of 34 TCF (Best Estimate) of conventional and unconventional gas and 1.2 billion barrels of oil and hydrocarbon liquids (Best Estimate). 
• 193 conventional leads and prospects identified in Coxco and Reward Dolomites and Tawallah Group Sandstones with 4.3 TCF Prospective Resources (Best Estimate). _

_And now: some details_

Offer price: $0.035 per share
Option: 1 option for every 4 shares subscribed to
Option: Listed AJQOA
Strike: $0.05
Expiry: 29 February 2024

one broker view:
_Post the proposed demerger, Armour will be left with a considerable production infrastructure, established and growing production, a gas storage facility and considerable exploration ground all within immediate proximity to the proposed Australia Gas Hub at Wallumbilla.  Armour Energy owns and operates the Kincora Gas Plant (KGP) along with a number of producing Gas fields over 60klms of the Roma Shelf associated pipelines and compressors along with the Newstead Gas Facility that can hold up to 10Pj of Gas.

The fields produce wet gas which is stripped of condensate at the (KGP) and subsequently sold into the east coast gas market via Armour’s pipeline to the Wallumbilla Hub. At present the KGP can produce up to 12Tj per day but is targeting much higher volumes.
The key asset of Armour is the Kincora production facility that currently produces a modest cash profit at project level based on current production of 6 -8Tj per day. The economics of Kincora improve materially with the potential removal of having to service the A$43m debt at 8.75%.

Armour has considerable and highly prospective exploration ground in direct proximity to the Kincora production facility. Armour has in place the established infrastructure to materially increase production volumes from this exploration ground to an intended 14Tj per day.  At 14 Tj without having to service the $43m debt, would see Armour generating material free cash flow and enable the company to be a self-funded developer/ explorer with an enviable asset base.

Armour currently has a tenement package of 3000sq klm and has several high profile targets. Armour sold its 10% interest in Petroleum lease 1084 (PL 1084) known as the Murrungama block to APLNG last year for $4m. The Murrungama block covered some 18sq km._



> _"Shareholders will receive shares in the new listed company that will trade at a discount to its listed peers. Shareholders will also maintain their current shareholding in Armour but will see the company have minimal debt , which they are currently servicing at circa 8.75% of debt of $43m. Whilst the company has been able to pay down this debt from an initial $60m to now sit at $43m , the near elimination of this debt will see Armour emerge as profitable producer at greater than 6tj per day with a well-articulated strategy to achieve 12-14 tj of production per day which would see Armour highly profitable at a corporate level able to self-fund its exploration assets and also have an unencumbered gas storage facility with a high strategic value and in direct proximity to what the federal government has labelled “the Australian gas hub” at Wallumbilla._


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## frugal.rock (2 June 2021)

This one may have found its bottom, or not.
Next few days/ weeks should tell.
A gas led recovery? Ha.


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