Government Reforms Improve Armour’s Tenement Value in Qld
Armour Energy said that the recently announced changes to the Petroleum and Gas Act 2004, as a result of the passing of the Land and Other Legislation Amendment Bill 2014 by the Queensland Government, constitute a major reform and improve, by extension of Armour’s tenures, the current strong foundation for Armour to further explore, appraise and develop its highly prospective tenements in Queensland-in a manner that benefits both the State of Queensland and the company.
Armour believes the changes demonstrate a strong commitment by the Queensland Government to ongoing growth in the State’s petroleum exploration sector.
The changes are expected to significantly enhance Armour’s plans to attract capital to its Queensland gas and oil exploration projects.
The two year extension to Armour’s ATP1087 and ATP(a)1107 (see Figure 1) will allow the Company to optimize technical aspects of its exploration programme and allow more time for development planning, community consultation and environmental studies.
Under the amendments, mandatory relinquishment requirements applying to the tenements will be deferred by two years. In addition, Armour will be able to enjoy more flexible relinquishment arrangements and or work programme requirements across the tenures it holds in Queensland.
Work programme amendments will be assessed on a case by case basis at the Minister’s discretion. This will allow Armour to seek approval for an amended work programme proposal, on the basis that it meets the State’s objective with regards to optimization of the State’s petroleum resources.
Following the amendments, in order to apply for a Petroleum Production License, Armour will now simply need to submit, with the application, a statement from a suitably qualified person confirming the presence of commercial quantities of oil and gas in combination with a development plan. These arrangements replace the previous requirement to demonstrate that at least 20% of the discovered resources were a proved or probable reserve. These amendments will allow production and development more rapidly and with less capital investment than under the previous regime.
Press Release, June 2, 2014