Armour Energy has received approval form the Northern Territory Department of Investment, Tourism and Trade (DITT) to transfer the NT exploration permits into McArthur NT.
The company is also expecting to receive approval from DITT for the interposition of McArthur Oil & Gas.
In preparation for the proposed demerger and separate ASX listing of the Northern Basin assets, Armour has undergone a restructuring exercise to transfer the NT exploration permits into a gnarly established subsidiary – McArthur NT.
Once the interposition is complete, the restructuring required to enable the proposed demerger and IPO of McArthur will be complete.
The next stage in the proposed demerger and IPO process will be in in-specie distribution of Armour’s interest in McArthur to Armour shareholders.
Chief executive officer Brad Lingo said he appreciates the work that DITT has put in to assist the company with the restructuring of the Northern Basin assets.
“Once the interposition is complete, Armour will be in a strong position to progress with the next stages of the proposed demerger and IPO of McArthur,” he said.
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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