APLNG Acquires Armour's 10% Interest in PL 1084 (Murrungama Project)
Australia Pacific LNG Pty Ltd. (APLNG) has entered into a sale and purchase agreement with Brisbane-based Armour Energy Ltd. to its 10% interest in petroleum lease PL 1084 in the Surat Basin, for a total cash consideration of A$4.0 million. APLNG currently holds a 90% operated interest in the lease.
Under the terms of the agreement, APLNG will pay an initial deposit of A$500,000 within 5 business days of the execution of the agreement, with the remaining A$3.5 million payable to Armour upon satisfaction of certain customary closing conditions.
In the event that the deal is not completed within 6 months, Armour will refund the deposit to APLNG (if APLNG is not in default), the transfer of the 10% interest will not be effected and the joint venture will remain on foot.
PL 1084 covers an area of 18 sq. km, situated 22 km south‐west of the town of Chinchilla in Queensland. The Murrungama project lies adjacent to APLNG’s Talinga Gas and Water Processing Facilities. APLNG is a joint venture between U.S. independent ConocoPhillips (37.5%), Origin Energy Ltd. (37.5%), and China Petrochemical Corp. (25%).
Commenting on the deal, Armour’s Chairman Nick Mather said, “While working with APLNG and the development of the Murrungama project was 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 on Armour’s highly prospective 100% owned and operated assets and to allow for further debt reduction.”
APLNG and Armour were originally awarded an authority to prospect (ATP 2046) over the project area in July 2019 by the Queensland Government after a successful joint tender bid. The companies were subsequently granted a petroleum lease in March this year.
The permit was Australia’s first tenure to be allocated to the supply of gas exclusively to Australian Manufacturers. Gas produced will be supplied to domestic market through APLNG’s existing processing facilities and infrastructure, with first gas expected to be delivered by mid‐2021.