News: AJQ Armour Energy says seeking specific performance of the farmout agreement, page-20

OK - so here is my take.

Armour say 'stuff this" and do no additional work in the shales in the QLD or NT, and sit on the tenure for as long as they can. The JV still needs to complete the farming and work commitments or risk losing the tenure and looking like fools.

Armour then concentrates all efforts and funds into the Surat assets, which is the way that they are going to be making any money in the near future.

The Northern Australian assets will take 5-10 years to develop as the Greens and other time-wasters will require Environmental Impact Statements and other approvals - which will take about 2-3 years - if there's no eco-warrior challenges in the courts. BUT - this is only after an exploration is completed and they discover something worth delivering.

Back to the Surat.... the ex-origin fields do not require any additional environmental approvals and the oil and gas will be on line in about 12 months. Any additional money that they have - through farmouts or capital raising will go in to exploration in the region to grow reserves. This is the obvious field for them to develop as they do not have to spend great volumes of cash to develop it, given that there is already gas pipelines and infrastructure nearby.

Let 2016 pass, which is the building phase and once the oil price recovers (fingers crossed in 2017) then they are in prime position to develop.