News: AJQ Armour Energy And Santos QNT Pty Ltd Execute Farmin Agreement

Dec 4 (Reuters) - Armour Energy Ltd (AJQ) :

• ARMOUR ENERGY LIMITED AND SANTOS QNT PTY LTD EXECUTE SOUTH NICHOLSON BASIN FARMIN AGREEMENT
• UNDER FARMIN AGREEMENT, SANTOS HAS RIGHT TO EARN A 70% INTEREST IN ARMOUR’S NORTH QUEENSLAND TENEMENTS
• UNDER AGREEMENT, ARMOUR WILL MAKE APPLICATION TO QUEENSLAND GOVERNMENT TO TRANSFER 70% INTEREST AND OPERATORSHIP OF ATP1087 TO SANTOS
• UNDER FARMIN AGREEMENT, SANTOS HAS RIGHT TO EARN 70% INTEREST IN ARMOUR’S NORTHERN TERRITORY TENEMENTS
• ARMOUR TO RECEIVE AN INITIAL CASH PAYMENT OF $A15 MILLION WITHIN 5 BUSINESS DAYS OF SUBMISSION OF AN APPLICATION TO QUEENSLAND GOVERNMENT
• ARMOUR MAY RECEIVE FURTHER CASH PAYMENTS OF UP TO A$15 MILLION IN TOTAL
• SUBJECT TO APPROVALS, SANTOS WILL FREE CARRY 100% OF CO'S SHARE OF EXPENDITURE FOR ALL FARMIN PERMITS UP TO TOTAL AMOUNT OF A$64.9 MILLION