Energy Club NT - Armour Energy Signs Gas Supply Heads of Agreement

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Armour Energy Signs Gas Supply Heads of Agreement

Armour Energy Signs Gas Supply Heads of Agreement

21 Feb 2023 8:40 AM | Stephanie Berlin (Administrator)

Armour Energy Limited, (Armour), is pleased to announce that it has signed a Heads of Agreement (HOA) with Australian Natural Diamonds Ltd, a wholly owned subsidiary of Lucapa Diamond Company Limited (ASX: LOM), for gas supply to the Merlin Diamond Project from its Glyde discovery in EP 171 in the McArthur Basin, Northern Territory.

HIGHLIGHTS

▪ HOA in place for 14 years supply of gas produced from the Glyde gas discovery to Merlin Diamond Project.

▪ The agreement reinforces the hydrocarbon potential of the McArthur Basin in the Northern Territory and Armour’s ability to provide this valuable resource to the domestic market.

▪ Successful execution of the development plan will represent the first production from the Basin which lies within 20 km of the Merlin site. The HOA contemplates the sale of gas produced from the Glyde Field from production startup (mid-CY2025) for 14 years through to the end of CY2039 providing fuel to support the development of the Merlin Diamond Project which is currently undergoing a feasibility study. This is anticipated to be a minimum of 7 PJ of gross sales gas over the contract term.

The terms set out in the HOA will form the basis of a fully termed Gas Sales Agreement (“GSA”) once all the conditions precedent have been met.

For full ASX announcement, click here

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