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speculator101

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06/03/17

13:30

Post #: 23125946
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Originally posted by frmen1 ↑

Speculator. Umm, wow, ok, I'll give it a crack!
The reasons why Armour's SP is languishing is largely likely to several reasons.
1) Yes dilution due to the current cap raising terms- we are going for up to $40M, enough for a large exploration and development program. Our debt is mainly tied in with DGR which are active participants in this cap raising. What we are after is money to further our project. My understanding is we owed DGR around 12M which they are taking in shares/convertible notes.
2) Do I think it will provide good returns? Yes. We are aiming for initial 5TJ/D before June with 9TJ/D by Sept, and intending 20TJ/D within 18 months.
We have a GSA with Origin APLNG for up to 3.6PJ/A with 1.8PJ/A fixed for 5 years.
In one announcement they were expecting liquids (condensate and oil) to be sufficient to cover costs of running Kincora project, and when you say "very small quantities of liquids", well we certainly aren't Santos or Origin, but neither is our share price! We are eventually (in phase 2 2018/19) looking at 10000 bbls condensate /PJ, and 2000 tonnes LPG/PJ. No way that's chickenfeed.
3) Something to mull over. Senex (SXY) are also exploring in the Surat, albeit to the north, but roughly the same distance to the WGH (Wallumbilla) and, in a $50M program, are hoping for 10TJ/D by mid 2018 increasing to 16TJ/D by 2019
http://imagesignal.commsec.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw
We own our pipeline to WGH and just today signed agreements with APA for capacity to markets there.
I urge you to go through the announcements put out by Armour re staff payments yourself, but you would do well to sit down and read through what we have in mind for Surat Basin projects. Put NT our of your mind for the time being.
All best. Frmen.

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Appreciate the reply Frmen. I guess my problem is that I had high hopes for the NT assets.
I will indeed need to spend some time reading through what AJQ has been upto.
What is AJQs debt/cash position now and say, by June (when production commences).

How diluted will shareholders be when all of the shares/options etc are exercised by DGR and the big investor that put in $40m (or upto)? No worries if you prefer to leave it at that. I will eventually get around to crunching the numbers.

No doubt their is a gas crunch coming, I am just not sure how much they will actually make after debt, costs, dilution etc.

AJQ Price at posting: 8.2¢ Sentiment: Hold Disclosure: Not Held
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