Armour Energy has received approval for amendments to facilitate the McArthur Oil & Gas demerger.
As part of the approved amendments, the company has been permitted to restructure, de-merge and IPO of McArthur and and dispose of the Northern Basin assets.
In order for the resolution to pass it required 75 per cent of eligible noteholders by value to vote in favour and the company received over 80 per cent voting in favour.
Armour chief executive officer Brad Lingo said this highlighted the strong support by the note holders for the proposed demerger and IPO and retirement of debt.
“We are pleased with the on-going support we have received from the noteholders. Over the last 12 months we have demonstrated Armour’s ability to accelerate the reduction of the principal amount of the notes and with the proposed demerger of McArthur we will look to make further repayments of this debt,” he said.
“The support of the noteholders with these amendments provides a clear path to achieving the proposed demerger and IPO.”
In March this year the company announced it proposed to de-merge its Northern Basin Oil & Gas company into a new entity, McArthur Oil & Gas, which would hold all of the assets and operations of the business.
The company is the leading operator in the McArthur Basin, Northern Territory, and the 100 per cent owner and operator of six granted exploration permits and seven exploration permit applications.
It is also the 100 per cent owner and operator of a material positioned in the South Nicholson Basin in north-west Queensland and and one exploration permit covering 7900km2.
Armour’s Northern Basin business in the McArthur Basin contains extensive acreage holdings covering multiple conventional and unconventional gas and liquids rich prospects and plays.
As part of the demerger, it is proposed that McArthur Oil & Gas will enter into a conditional agreement to acquire from the Northern Basin business for consideration of $40 million, plus a minimum 33.3 per cent retained interest by Armour.
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