Armour Energy has officially completed an acquisition of Oilex’s Cooper-Eromanga Basin assets and its subsidiary, CoEra.
Oilex agreed to sell all of its interests in the Cooper-Eromanaga Basin to Armour, including: a 79.33 per cent interest in two petroleum exploration licences (PEL112 and PEL444), with an option to acquire the remaining 20.67 per cent; and the right to acquire 27 petroleum retention licences from Senex.
With the transaction completed, Oilex no longer has any oil and gas assets in Australia and will shift its focus to projects in India and the United Kingdom.
CoEra’s portfolio comprises a substantial footprint of exploration and production assets in the oil-rich Western and Northern Flanks of the Cooper Basin in South Australia.
Armour highlighted that the basin historically had a high exploration success rate, low-cost development pathways and remained under-explored and under-developed.
Chief executive officer Brad Lingo said Armour was pleased to complete the acquisition after the completion date was extended three times.
In September, the companies extended the completion date from September 15 to October 15 to give Armour shareholders an opportunity to vote at the company’s general meeting and to provide additional time for the companies to satisfy conditions of the deal.
Lingo said the acquisition provided Armour with a strong portfolio of conventional oil and wet gas leads and prospects, together with a significant tight gas discovery in the Panning-2 well.
“The new acreage has a significant amount of 3D seismic coverage which has shown in the past to be a key to success in the Basin. With the completion of the acquisition, Armour is looking to high grade the leads and prospects with a view to selecting three to five high-quality drilling targets by the end of 2021,” he said.