Armour Energy (ASX:AJQ) has received a conditional off-market...

Armour Energy (ASX:AJQ) has received a conditional off-market $0.12 cash per share takeover bid from Westside Corporation that values it at about $36.6 million.

This represents a 94% premium to the one month volume weighted average price of AJQ shares of $0.062.

It is conditional on the announced farm-out proposal by Armour to transfer 75% of key acreage in the Northern Territory to American Energy Partners (AEP) not proceeding; Westside achieving 51% acceptances; and there being no prescribed occurrences.

WestSide is a subsidiary of Chinese private company Landbridge Group, which acquired the company in a hostile takeover offer in 2014.
 
Earlier this month, Armour Energy attracted a US$100 million (A$135.9 million) farm-in agreement from AEP over its unconventional oil and gas acreage in the McArthur Basin, Northern Territory.

Under the non-binding letter of intent, the funds will be spent on work programs over a maximum of 5 years in exchange for a 75% working interest.
 
In addition, Armour will be free carried during Phase One of the farm-in and receive an upfront payment of US$11 million as well as access to US$100 million of debt funding for its share of Phase Two appraisal and development costs.

Armour had $8.5 million in cash as at 30th June 2015.