Further to the previous announcements of 28 May, 1 June and 5 June 2020, the Board of Armour Energy has advised that the share sale agreement with Oilex for the acquisition of all the issued capital in CoEra Ltd has been executed by the parties.
As previously disclosed, CoEra’s assets comprise a substantial footprint of exploration and production licences on the oil rich Western and Northern Flanks of the Cooper Basin. The basin historically has a high exploration success rate, low cost development pathways, and remains under-explored and under-developed. Proven oil fairways transect and lie adjacent to the licence areas subject of the proposed acquisition and the many nearby discoveries and fields provide analogues for future discoveries.
The acquisition consideration includes the issue to Oilex (or its nominees) of a minimum of 24.5m shares and a maximum of 34.5m shares in Armour, subject to the VWAP of the Armour share price for a period of 90 days from the execution of the Term Sheet. The variance is designed to deliver a closing consideration of $906,500 in Armour shares to Oilex, subject to the aforementioned maximum and minimum parameters. Completion of the sale agreement is subject to a number of conditions. The conditions include that the issue of the shares to Oilex will be subject to any necessary Armour shareholder or regulatory approvals, and the shares issued will also be subject to a 12 month voluntary escrow.
In conjunction with this development, the Company is pleased to announce the commencement of Mr Brad Lingo as Armour’s CEO.
Source: Armour Energy