Ann: Binding Term Sheet Executed for Farm-in by Santos, page-2

HAPPY!!

Armour Energy Limited
15 October 2019
Binding Term Sheet for $A95m South Nicholson Basin Farm‐in
by Santos Limited
Highlights:
 Binding Term Sheet agreed with Santos QNT Limited for Farm‐in by Santos into Armour’s
South Nicholson Basin oil and gas exploration project in Northern Australia.
 Armour to receive an upfront cash payment of $A15million.
 Armour to be free carried 100% up to an exploration expenditure of $A65 million for the
committed work program over 4 years.
 Armour to receive further cash payments up to $A15 million, subject to certain conditions
being satisfied.
 Santos will acquire a 70% and operated interest in each tenement as conditions are satisfied.