Proactiveinvestors Australia

Armour Energy www.armourenergy.com.au/

Armour Energy (ASX: AJQ)  holds 126,000 square kilometre of acreage in the McArthur, South Nicholson and Georgina Basins of the Northern Territory and Queensland and is also participating in the onshore Gippsland and Otway basins.

Tweet

 

Email

Email to a friend:

To:

Separate multiple addresses with commas.

From Email address:

Name: Please send me a copy Message:

Verification code

Enter the code from aboveRequired

Send

Armour Energy closes down in the first days after listing on ASX

Armour Energy’s (ASX: AJQ) shares have lost 2.27% of their value since listing on the ASX yesterday morning though the flurry of activity the company has lined up may redress that.

Shares in the company closed at A$0.43 on Friday 27 April, down from its listing price of A$0.50.

Despite this, Armour could reverse at least part of this if the Moreys-1 well it is drilling with Lakes Oil (ASX: LKO) in the Gippsland Basin succeeds.

Moreys-1 targets a tilted fault block that straddles the border between Lakes' PEP 169 and Somerton Energy's PEP 168 along a known west northwest trending hydrocarbon fairway.

The primary objectives are the Late Cretaceous Waarre C sands with secondary targets in the overlying Flaxman formation and underlying Eumeralla Formation. 

It is the upcoming start of its McArthur Basin shale exploration program next month that will offer the most opportunity for Armour’s share price to grow.

Should the first of the 12 planned wells succeed, it would serve to derisk the remaining 11 wells and each subsequent success after that would further increase confidence that Armour has large scale gas and associated liquids resources in its Northern Territory and Queensland permits.

Armour had raised A$75 million through its initial public offering, which received strong support from institutional investors with JP Morgan, HSBC, UBS Wealth Management and Merrill Lynch amongst them.

Major American hedge fund manager Och-Ziff Capital Management Group, which had provided A$4 million in seed capital and committed to subscribing for A$7.5 million of Armour's shares in the IPO, also holds a substantial 6.28% stake in the company.

Sign up to Proactive Investors

Comments from Proactive Investors readers

• Fill in your details below:

Verification Code

Reload image