Australia Pacific LNG to take full ownership in Murrungama block
Armour Energy has signed a sale and purchase agreement with Australia Pacific LNG (APLNG) for the sale of its 10% stake in Petroleum Lease 1084 (PL1084), called the Murrungama block in the Surat Basin in Queensland, Australia for AUD4 million.
The closure of the deal is subject to certain conditions.
Australia Pacific LNG, which currently has a 90% stake in the Murrungama block, will become the sole owner after the completion of the deal. The company, which claims to be the largest producer of coal seam gas in Australia is a joint venture between Origin Energy (37.5%), ConocoPhillips (37.5%), and Sinopec (25%).
Last July, the company alongside Armour Energy won the Authority to Prospect – 2046 (ATP 2046) from the Queensland Department of Natural Resources, Mines and Energy (DNRME) following a successful joint tender bid. Subsequently, DNRME awarded PL1084 over the former ATP 2046 in March 2020.
The Murrungama block, which spans an area of 18 square kilometres is a coal seam gas exploration tenure, that is located 22km south-west of the town of Chinchilla. The coal seam gas block adjoins the Talinga coal seam gas project owned by Australia Pacific LNG.
Nick Mather – Armour Energy Chairman 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.
“We are thankful to APLNG for the opportunity to work together on the project, and look forward to continuing our relationship in the future including through the ongoing Gas Sales Agreement with APLNG from Armour’s Kincora Gas Project.”